S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         2927
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 20, 2015
                                      ___________
       Introduced  by  M.  of A. ENGLEBRIGHT, BENEDETTO, RIVERA, MARKEY, GALEF,
         CAHILL, GUNTHER, LUPARDO, MAGNARELLI, SCHIMMINGER, HOOPER,  O'DONNELL,
         ROSENTHAL,  BROOK-KRASNY, TITONE, JAFFEE, KAVANAGH, SKARTADOS, BRINDI-
         SI, BARRETT, SANTABARBARA -- Multi-Sponsored by -- M. of  A.  BRENNAN,
         COLTON,  COOK,  GIGLIO, GOTTFRIED, KOLB, LOPEZ, MAGEE, PAULIN, STIRPE,
         WEINSTEIN -- read once and referred to the Committee on Energy
       AN ACT to amend the public service law and the public  authorities  law,
         in relation to net energy metering for solar, wind, fuel cell and farm
         waste  electric  generating  systems;  and to repeal sections 66-j and
         66-l of the public service law relating to net energy metering
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Sections  66-j  and  66-l  of  the public service law are
    2  REPEALED and a new section 66-j is added to read as follows:
    3    S 66-J. NET ENERGY METERING FOR SOLAR, WIND, FUEL CELL OR  FARM  WASTE
    4  ELECTRIC GENERATING SYSTEMS, OR MICRO-COMBINED HEAT AND POWER GENERATING
    5  EQUIPMENT, AND MICRO-HYDROELECTRIC GENERATING EQUIPMENT. 1. DEFINITIONS.
    6  AS  USED  IN  THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
    7  MEANINGS:
    8    (A) "CUSTOMER-GENERATOR" MEANS: (I) ANY CUSTOMER OF AN ELECTRIC CORPO-
    9  RATION, WHO OWNS OR OPERATES SOLAR, WIND OR FUEL CELL ELECTRIC  GENERAT-
   10  ING  EQUIPMENT,  OR  ANY  HYBRID  EQUIPMENT  OF THESE THREE TECHNOLOGIES
   11  LOCATED AND USED AT HIS OR HER PREMISES; (II) A CUSTOMER OF AN  ELECTRIC
   12  CORPORATION,  WHO OWNS OR OPERATES FARM WASTE ELECTRIC GENERATING EQUIP-
   13  MENT LOCATED AND USED AT HIS OR HER "FARM OPERATION," AS  SUCH  TERM  IS
   14  DEFINED  IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED ONE OF THE AGRI-
   15  CULTURE AND MARKETS LAW; (III) A RESIDENTIAL  CUSTOMER  OF  AN  ELECTRIC
   16  CORPORATION  WHO  OWNS, LEASES OR OPERATES MICRO-COMBINED HEAT AND POWER
   17  GENERATING EQUIPMENT LOCATED ON THE CUSTOMER'S PREMISES; (IV) A RESIDEN-
   18  TIAL CUSTOMER OF AN ELECTRIC CORPORATION, WHO OWNS OR OPERATES MICRO-HY-
   19  DROELECTRIC GENERATING EQUIPMENT LOCATED AND USED AT HIS  OR  HER  RESI-
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD07249-01-5
       A. 2927                             2
    1  DENCE;  AND  (V)  A  NON-RESIDENTIAL CUSTOMER OF AN ELECTRIC CORPORATION
    2  WHICH OWNS OR OPERATES MICRO-HYDROELECTRIC GENERATING EQUIPMENT  LOCATED
    3  AND USED AT ITS PREMISES.
    4    (B) "NET ENERGY METER" MEANS A METER THAT MEASURES THE REVERSE FLOW OF
    5  ELECTRICITY  TO REGISTER THE DIFFERENCE BETWEEN THE ELECTRICITY SUPPLIED
    6  BY AN ELECTRIC CORPORATION TO THE CUSTOMER-GENERATOR AND THE ELECTRICITY
    7  PROVIDED TO THE CORPORATION BY THAT CUSTOMER-GENERATOR.
    8    (C) "NET ENERGY METERING" MEANS THE USE OF A NET ENERGY METER TO MEAS-
    9  URE, DURING THE BILLING PERIOD APPLICABLE TO A  CUSTOMER-GENERATOR,  THE
   10  NET  AMOUNT  OF  ELECTRICITY  SUPPLIED  BY  AN  ELECTRIC CORPORATION AND
   11  PROVIDED TO THE CORPORATION BY A CUSTOMER-GENERATOR.
   12    (D) "SOLAR ELECTRIC GENERATING EQUIPMENT" MEANS A PHOTOVOLTAIC  SYSTEM
   13  (I)  WITH  A RATED CAPACITY OF NOT MORE THAN TWO THOUSAND KILOWATTS; AND
   14  (II) THAT IS MANUFACTURED, INSTALLED, AND OPERATED  IN  ACCORDANCE  WITH
   15  APPLICABLE  GOVERNMENT  AND INDUSTRY STANDARDS, THAT IS CONNECTED TO THE
   16  ELECTRIC SYSTEM AND OPERATED IN PARALLEL WITH AN ELECTRIC  CORPORATION'S
   17  TRANSMISSION  AND  DISTRIBUTION  FACILITIES,  AND  THAT  IS  OPERATED IN
   18  COMPLIANCE WITH ANY STANDARDS AND REQUIREMENTS  ESTABLISHED  UNDER  THIS
   19  SECTION.
   20    (E)  "FARM  WASTE  ELECTRIC GENERATING EQUIPMENT" MEANS EQUIPMENT THAT
   21  GENERATES  ELECTRIC  ENERGY  FROM  BIOGAS  PRODUCED  BY  THE   ANAEROBIC
   22  DIGESTION  OF  AGRICULTURAL  WASTE,  SUCH  AS  LIVESTOCK MANURE, FARMING
   23  WASTES AND FOOD PROCESSING WASTES WITH A RATED CAPACITY OF NOT MORE THAN
   24  TWO THOUSAND KILOWATTS, THAT IS:
   25    (I) MANUFACTURED, INSTALLED, AND OPERATED IN ACCORDANCE WITH  APPLICA-
   26  BLE GOVERNMENT AND INDUSTRY STANDARDS;
   27    (II) CONNECTED TO THE ELECTRIC SYSTEM AND OPERATED IN CONJUNCTION WITH
   28  AN ELECTRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION FACILITIES;
   29    (III)  OPERATED  IN  COMPLIANCE  WITH  ANY  STANDARDS AND REQUIREMENTS
   30  ESTABLISHED UNDER THIS SECTION;
   31    (IV) FUELED AT A MINIMUM OF NINETY  PERCENT  ON  AN  ANNUAL  BASIS  BY
   32  BIOGAS  PRODUCED FROM THE ANAEROBIC DIGESTION OF AGRICULTURAL WASTE SUCH
   33  AS LIVESTOCK MANURE MATERIALS, CROP RESIDUES, AND FOOD PROCESSING WASTE;
   34  AND
   35    (V) FUELED BY BIOGAS GENERATED BY ANAEROBIC DIGESTION  WITH  AT  LEAST
   36  FIFTY  PERCENT BY WEIGHT OF ITS FEEDSTOCK BEING LIVESTOCK MANURE MATERI-
   37  ALS ON AN ANNUAL BASIS.
   38    (F) "MICRO-COMBINED HEAT AND  POWER  GENERATING  EQUIPMENT"  MEANS  AN
   39  INTEGRATED,  COGENERATING  BUILDING  HEATING AND ELECTRICAL POWER GENER-
   40  ATION SYSTEM, OPERATING ON ANY FUEL AND OF ANY APPLICABLE  ENGINE,  FUEL
   41  CELL,  OR  OTHER TECHNOLOGY, WITH A RATED CAPACITY OF AT LEAST ONE KILO-
   42  WATT AND NOT MORE THAN TEN KILOWATTS ELECTRIC  AND  ANY  THERMAL  OUTPUT
   43  THAT  AT  FULL  LOAD  HAS  A  DESIGN  TOTAL  FUEL  USE EFFICIENCY IN THE
   44  PRODUCTION OF HEAT AND ELECTRICITY OF NOT LESS THAN EIGHTY PERCENT,  AND
   45  ANNUALLY  PRODUCES AT LEAST TWO THOUSAND KILOWATT HOURS OF USEFUL ENERGY
   46  IN THE FORM OF ELECTRICITY THAT MAY WORK  IN  COMBINATION  WITH  SUPPLE-
   47  MENTAL  OR  PARALLEL CONVENTIONAL HEATING SYSTEMS, THAT IS MANUFACTURED,
   48  INSTALLED AND OPERATED IN  ACCORDANCE  WITH  APPLICABLE  GOVERNMENT  AND
   49  INDUSTRY  STANDARDS,  THAT IS CONNECTED TO THE ELECTRIC SYSTEM AND OPER-
   50  ATED IN CONJUNCTION WITH  AN  ELECTRIC  CORPORATION'S  TRANSMISSION  AND
   51  DISTRIBUTION FACILITIES.
   52    (G) "FUEL CELL ELECTRIC GENERATING EQUIPMENT" MEANS:
   53    (I) A SOLID OXIDE, MOLTEN CARBONATE, PROTON EXCHANGE MEMBRANE OR PHOS-
   54  PHORIC  ACID  FUEL  CELL WITH A COMBINED RATED CAPACITY OF NOT MORE THAN
   55  TWO THOUSAND KILOWATTS; AND
       A. 2927                             3
    1    (II) THAT IS MANUFACTURED, INSTALLED AND OPERATED IN  ACCORDANCE  WITH
    2  APPLICABLE  GOVERNMENT  AND INDUSTRY STANDARDS, THAT IS CONNECTED TO THE
    3  ELECTRIC SYSTEM AND OPERATED IN PARALLEL WITH AN ELECTRIC  CORPORATION'S
    4  TRANSMISSION  AND  DISTRIBUTION  FACILITIES,  AND  THAT  IS  OPERATED IN
    5  COMPLIANCE  WITH  ANY  STANDARDS AND REQUIREMENTS ESTABLISHED UNDER THIS
    6  SECTION.
    7    (H) "MICRO-HYDROELECTRIC GENERATING EQUIPMENT" MEANS  A  HYDROELECTRIC
    8  SYSTEM  (I)  (A)  IN  THE  CASE  OF A RESIDENTIAL CUSTOMER, WITH A RATED
    9  CAPACITY OF NOT MORE THAN TWENTY-FIVE KILOWATTS; AND (B) IN THE CASE  OF
   10  A  NON-RESIDENTIAL  CUSTOMER, WITH A RATED CAPACITY OF NOT MORE THAN TWO
   11  THOUSAND KILOWATTS; AND (II) THAT IS MANUFACTURED, INSTALLED, AND  OPER-
   12  ATED  IN  ACCORDANCE  WITH APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS,
   13  THAT IS CONNECTED TO THE ELECTRIC SYSTEM  AND  OPERATED  IN  CONJUNCTION
   14  WITH AN ELECTRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION FACILITIES,
   15  AND  THAT  IS OPERATED IN COMPLIANCE WITH ANY STANDARDS AND REQUIREMENTS
   16  ESTABLISHED UNDER THIS SECTION.
   17    (I) "WIND ELECTRIC GENERATING EQUIPMENT" MEANS  A  WIND  GENERATOR  OR
   18  GENERATORS  WITH A COMBINED RATED CAPACITY OF NOT MORE THAN TWO THOUSAND
   19  KILOWATTS THAT IS MANUFACTURED, INSTALLED  AND  OPERATED  IN  ACCORDANCE
   20  WITH  APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS, THAT IS CONNECTED TO
   21  THE ELECTRIC SYSTEM AND OPERATED IN PARALLEL  WITH  AN  ELECTRIC  CORPO-
   22  RATION'S  TRANSMISSION AND DISTRIBUTION FACILITIES, AND THAT IS OPERATED
   23  IN COMPLIANCE WITH ANY STANDARDS AND REQUIREMENTS ESTABLISHED UNDER THIS
   24  SECTION.
   25    (J) "ELECTRIC CORPORATION" MEANS ANY PUBLIC OR PRIVATELY OWNED  ENTITY
   26  THAT OFFERS RETAIL ELECTRICAL SERVICE TO END-USE ELECTRIC CONSUMERS.
   27    (K)  "ELIGIBLE  TECHNOLOGIES" MEANS THE SOLAR, WIND, FUEL CELL OR FARM
   28  WASTE ELECTRIC GENERATING EQUIPMENT.
   29    2. INTERCONNECTION AND NET ENERGY METERING.  AN  ELECTRIC  CORPORATION
   30  SHALL   PROVIDE   FOR  THE  INTERCONNECTION  OF  ELIGIBLE  TECHNOLOGIES,
   31  MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT, AND MICRO-HYDROELEC-
   32  TRIC GENERATING EQUIPMENT OWNED OR OPERATED BY A CUSTOMER-GENERATOR  AND
   33  FOR  NET  ENERGY  METERING,  PROVIDED THAT THE CUSTOMER-GENERATOR ENTERS
   34  INTO A NET ENERGY METERING CONTRACT WITH  THE  CORPORATION  OR  COMPLIES
   35  WITH  THE  CORPORATION'S  NET ENERGY METERING SCHEDULE AND COMPLIES WITH
   36  STANDARDS AND REQUIREMENTS ESTABLISHED UNDER THIS SECTION.
   37    3. CONDITIONS OF SERVICE. (A) ON OR  BEFORE  THREE  MONTHS  AFTER  THE
   38  EFFECTIVE  DATE OF THIS SECTION, EACH ELECTRIC CORPORATION SHALL DEVELOP
   39  A MODEL CONTRACT AND FILE A SCHEDULE  THAT  ESTABLISHES  CONSISTENT  AND
   40  REASONABLE  RATES,  TERMS  AND  CONDITIONS  FOR  NET  ENERGY METERING TO
   41  CUSTOMER-GENERATORS, ACCORDING TO THE REQUIREMENTS OF THIS SECTION.  THE
   42  COMMISSION  SHALL RENDER A DECISION WITHIN THREE MONTHS FROM THE DATE ON
   43  WHICH THE SCHEDULE IS FILED.
   44    (B) AN ELECTRIC CORPORATION SHALL  IMPOSE  NO  OTHER  CHARGE  OR  FEE,
   45  INCLUDING, BUT NOT LIMITED TO, BACK-UP, STAND BY AND DEMAND CHARGES, FOR
   46  THE  PROVISION OF NET ENERGY METERING TO A CUSTOMER-GENERATOR, EXCEPT AS
   47  PROVIDED IN PARAGRAPH (D) OF SUBDIVISION FOUR OF THIS SECTION.
   48    (C) A CUSTOMER WHO OWNS OR OPERATES A FARM OPERATION AS SUCH  TERM  IS
   49  DEFINED  IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED ONE OF THE AGRI-
   50  CULTURE AND MARKETS LAW, OR A RESIDENTIAL CUSTOMER-GENERATOR AS  DEFINED
   51  BY  SUBPARAGRAPH  (III)  OF  PARAGRAPH  (A)  OF  SUBDIVISION ONE OF THIS
   52  SECTION THAT LOCATES SOLAR ELECTRIC GENERATING EQUIPMENT OR  FARM  WASTE
   53  ELECTRIC  GENERATING EQUIPMENT WITH A NET ENERGY METER ON PROPERTY OWNED
   54  OR LEASED BY SUCH CUSTOMER-GENERATOR MAY DESIGNATE ALL OR A  PORTION  OF
   55  THE  NET  METERING  CREDITS GENERATED BY SUCH EQUIPMENT TO METERS AT ANY
   56  PROPERTY OWNED OR LEASED BY SUCH CUSTOMER-GENERATOR WITHIN  THE  SERVICE
       A. 2927                             4
    1  TERRITORY    OF   THE   SAME   ELECTRIC   CORPORATION   TO   WHICH   THE
    2  CUSTOMER-GENERATOR'S NET ENERGY  METERS  ARE  INTERCONNECTED  AND  BEING
    3  WITHIN  THE  SAME LOAD ZONE AS DETERMINED BY THE LOCATION BASED MARGINAL
    4  PRICE  AS  OF  THE  DATE OF INITIAL REQUEST BY THE CUSTOMER-GENERATOR TO
    5  CONDUCT NET METERING. THE ELECTRIC CORPORATION WILL CREDIT THE  ACCOUNTS
    6  OF  THE CUSTOMER BY APPLYING ANY CREDITS TO THE HIGHEST USE METER FIRST,
    7  THEN SUBSEQUENT HIGHEST USE METERS UNTIL ALL SUCH CREDITS ARE ATTRIBUTED
    8  TO THE CUSTOMER. ANY EXCESS CREDITS SHALL BE CARRIED OVER TO THE FOLLOW-
    9  ING MONTH.
   10    (D) A CUSTOMER WHO OWNS OR OPERATES A FARM OPERATION AS SUCH  TERM  IS
   11  DEFINED  IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED ONE OF THE AGRI-
   12  CULTURE AND MARKETS LAW,  OR  A  NON-RESIDENTIAL  CUSTOMER-GENERATOR  AS
   13  DEFINED  BY SUBPARAGRAPH (V) OF PARAGRAPH (A) OF SUBDIVISION ONE OF THIS
   14  SECTION THAT LOCATES MICRO-HYDROELECTRIC GENERATING EQUIPMENT WITH A NET
   15  ENERGY METER ON PROPERTY OWNED OR LEASED BY SUCH CUSTOMER-GENERATOR  MAY
   16  DESIGNATE ALL OR A PORTION OF THE NET METERING CREDITS GENERATED BY SUCH
   17  EQUIPMENT   TO   METERS   AT  ANY  PROPERTY  OWNED  OR  LEASED  BY  SUCH
   18  CUSTOMER-GENERATOR WITHIN THE SERVICE TERRITORY  OF  THE  SAME  ELECTRIC
   19  CORPORATION  TO  WHICH  THE  CUSTOMER-GENERATOR'S  NET ENERGY METERS ARE
   20  INTERCONNECTED AND BEING WITHIN THE SAME LOAD ZONE AS DETERMINED BY  THE
   21  LOCATION  BASED  MARGINAL PRICE AS OF THE DATE OF INITIAL REQUEST BY THE
   22  CUSTOMER-GENERATOR TO CONDUCT NET  METERING.  THE  ELECTRIC  CORPORATION
   23  WILL  CREDIT THE ACCOUNTS OF THE CUSTOMER BY APPLYING ANY CREDITS TO THE
   24  HIGHEST USE METER FIRST, THEN SUBSEQUENT HIGHEST USE  METERS  UNTIL  ALL
   25  SUCH CREDITS ARE ATTRIBUTED TO THE CUSTOMER. ANY EXCESS CREDITS SHALL BE
   26  CARRIED OVER TO THE FOLLOWING MONTH.
   27    4.  RATES.  AN  ELECTRIC  CORPORATION SHALL USE NET ENERGY METERING TO
   28  MEASURE AND CHARGE FOR THE NET ELECTRICITY SUPPLIED BY  THE  CORPORATION
   29  AND  PROVIDED  TO  THE CORPORATION BY A CUSTOMER-GENERATOR, ACCORDING TO
   30  THESE REQUIREMENTS:
   31    (A) IN THE EVENT THAT THE AMOUNT OF ELECTRICITY SUPPLIED BY THE CORPO-
   32  RATION DURING THE BILLING  PERIOD  EXCEEDS  THE  AMOUNT  OF  ELECTRICITY
   33  PROVIDED  BY  A  CUSTOMER-GENERATOR,  THE  CORPORATION  SHALL CHARGE THE
   34  CUSTOMER-GENERATOR FOR THE NET ELECTRICITY SUPPLIED AT THE SAME RATE PER
   35  KILOWATT HOUR APPLICABLE TO SERVICE PROVIDED TO OTHER CUSTOMERS  IN  THE
   36  SAME SERVICE CLASS WHICH DO NOT GENERATE ELECTRICITY ONSITE.
   37    (B)  IN THE EVENT THAT THE AMOUNT OF ELECTRICITY PRODUCED BY A CUSTOM-
   38  ER-GENERATOR DURING THE BILLING PERIOD EXCEEDS THE AMOUNT OF ELECTRICITY
   39  USED BY THE CUSTOMER-GENERATOR, THE CORPORATION SHALL APPLY A CREDIT  TO
   40  THE  NEXT  BILL  FOR SERVICE TO THE CUSTOMER-GENERATOR FOR THE NET ELEC-
   41  TRICITY PROVIDED AT THE  SAME  RATE  PER  KILOWATT  HOUR  APPLICABLE  TO
   42  SERVICE  PROVIDED  TO OTHER CUSTOMERS IN THE SAME SERVICE CLASS WHICH DO
   43  NOT GENERATE ELECTRICITY ONSITE,  EXCEPT  FOR  MICRO-COMBINED  HEAT  AND
   44  POWER  OR  FUEL  CELL  CUSTOMER-GENERATORS,  WHO WILL BE CREDITED AT THE
   45  CORPORATION'S AVOIDED COSTS. THE AVOIDED COST CREDIT PROVIDED TO  MICRO-
   46  COMBINED HEAT AND POWER OR FUEL CELL CUSTOMER-GENERATORS SHALL BE TREAT-
   47  ED  FOR  RATEMAKING  PURPOSES AS A PURCHASE OF ELECTRICITY IN THE MARKET
   48  THAT IS INCLUDABLE IN COMMODITY COSTS.
   49    (C) AT THE END OF THE YEAR OR ANNUALIZED OVER THE PERIOD THAT  SERVICE
   50  IS  SUPPLIED  BY  MEANS  OF  NET  ENERGY METERING, THE CORPORATION SHALL
   51  PROMPTLY ISSUE PAYMENT AT ITS AVOIDED COST TO THE CUSTOMER-GENERATOR, AS
   52  DEFINED IN SUBPARAGRAPH (I) OR (II) OF PARAGRAPH (A) OF SUBDIVISION  ONE
   53  OF  THIS  SECTION,  FOR THE VALUE OF ANY REMAINING CREDIT FOR THE EXCESS
   54  ELECTRICITY PRODUCED DURING THE YEAR OR OVER THE  ANNUALIZED  PERIOD  BY
   55  THE CUSTOMER-GENERATOR.
       A. 2927                             5
    1    (D)  IN  THE EVENT THAT THE CORPORATION IMPOSES CHARGES BASED ON KILO-
    2  WATT DEMAND ON CUSTOMERS WHO ARE  IN  THE  SAME  SERVICE  CLASS  AS  THE
    3  CUSTOMER-GENERATOR  BUT  WHICH  DO NOT GENERATE ELECTRICITY ON SITE, THE
    4  CORPORATION MAY IMPOSE THE SAME CHARGES AT THE SAME RATES TO THE CUSTOM-
    5  ER-GENERATOR,  PROVIDED,  HOWEVER,  THAT  THE  KILOWATT  DEMAND FOR SUCH
    6  DEMAND CHARGES IS DETERMINED BY THE  MAXIMUM  MEASURED  KILOWATT  DEMAND
    7  ACTUALLY  SUPPLIED  BY  THE CORPORATION TO THE CUSTOMER-GENERATOR DURING
    8  THE BILLING PERIOD.
    9    (E) NET ENERGY METERING SHALL BE ACCOMPLISHED  USING  A  SINGLE  METER
   10  CAPABLE  OF  REGISTERING  THE  FLOW OF ELECTRICITY IN TWO DIRECTIONS. AN
   11  ADDITIONAL METER OR METERS TO MONITOR THE FLOW OF  ELECTRICITY  IN  EACH
   12  DIRECTION   MAY BE INSTALLED WITH THE CONSENT OF THE CUSTOMER-GENERATOR,
   13  AT THE EXPENSE OF THE ELECTRIC CORPORATION, AND THE ADDITIONAL  METERING
   14  SHALL  BE  USED  ONLY TO PROVIDE THE INFORMATION NECESSARY TO ACCURATELY
   15  BILL OR CREDIT THE CUSTOMER-GENERATOR PURSUANT TO PARAGRAPH (F) OF  THIS
   16  SUBDIVISION,  OR TO COLLECT SYSTEM PERFORMANCE INFORMATION ON THE ELIGI-
   17  BLE TECHNOLOGY FOR RESEARCH PURPOSES. IF THE EXISTING  ELECTRICAL  METER
   18  OF  AN  ELIGIBLE CUSTOMER-GENERATOR IS NOT CAPABLE OF MEASURING THE FLOW
   19  OF ELECTRICITY IN TWO DIRECTIONS AND PROVIDED THE REASON  THE  METER  IS
   20  NOT  CAPABLE  OF  MEASURING  THE  FLOW  IN TWO DIRECTIONS IS NOT RELATED
   21  EITHER TO A MECHANICAL DEVICE INSTALLED BY AN  ELECTRIC  CORPORATION  OR
   22  SUCH  CORPORATION'S  SELECTION  OF  A METER WITHOUT THIS CAPABILITY WHEN
   23  OTHER METERS CAPABLE  OF  MEASURING  THE  FLOW  OF  ELECTRICITY  IN  TWO
   24  DIRECTIONS WERE AVAILABLE TO THE ELECTRIC CORPORATION, THE CUSTOMER-GEN-
   25  ERATOR  SHALL BE RESPONSIBLE FOR ALL EXPENSES INVOLVED IN PURCHASING AND
   26  INSTALLING A METER THAT IS ABLE TO MEASURE THE FLOW  OF  ELECTRICITY  IN
   27  TWO DIRECTIONS.  IF AN ADDITIONAL METER OR METERS ARE INSTALLED, THE NET
   28  ENERGY  METERING CALCULATION SHALL YIELD A RESULT IDENTICAL TO THAT OF A
   29  SINGLE METER.
   30    (F) EVERY ELECTRIC CORPORATION SHALL DEVELOP A  STANDARD  CONTRACT  OR
   31  TARIFF  PROVIDING  FOR NET ENERGY METERING, AND SHALL MAKE THIS CONTRACT
   32  AVAILABLE TO ELIGIBLE CUSTOMER-GENERATORS, UPON REQUEST. EVERY  ELECTRIC
   33  CORPORATION  SHALL  ENSURE THAT REQUESTS FOR ESTABLISHMENT OF NET ENERGY
   34  METERING ARE PROCESSED IN A TIME PERIOD NOT EXCEEDING THAT FOR SIMILARLY
   35  SITUATED CUSTOMERS REQUESTING NEW ELECTRIC SERVICE, BUT  NOT  TO  EXCEED
   36  ONE  MONTH  FROM  THE DATE THE ELECTRIC CORPORATION RECEIVES A COMPLETED
   37  APPLICATION FORM FROM AN ELIGIBLE  CUSTOMER-GENERATOR.  IF  AN  ELECTRIC
   38  CORPORATION  IS UNABLE TO PROCESS THE REQUEST WITHIN THE ALLOWABLE TIME-
   39  FRAME, THE ELECTRIC CORPORATION SHALL NOTIFY THE  CUSTOMER-GENERATOR  OF
   40  THE  REASON  FOR  ITS  INABILITY TO PROCESS THE REQUEST AND THE DATE THE
   41  REQUEST WILL BE COMPLETED. EVERY ELECTRIC  CORPORATION  SHALL  MAKE  ALL
   42  NECESSARY  FORMS  AND  CONTRACTS  FOR  NET ENERGY METERING AVAILABLE FOR
   43  DOWNLOAD FROM THE INTERNET.
   44    (G) EACH NET ENERGY METERING CONTRACT OR TARIFF  SHALL  BE  IDENTICAL,
   45  WITH  RESPECT  TO  RATE  STRUCTURE,  ALL  RETAIL RATE COMPONENTS AND ANY
   46  MONTHLY CHARGES, TO THE CONTRACT OR TARIFF TO WHICH  THE  SAME  CUSTOMER
   47  WOULD  BE ASSIGNED IF SUCH CUSTOMER WAS NOT AN ELIGIBLE CUSTOMER-GENERA-
   48  TOR, EXCEPT THAT ELIGIBLE  CUSTOMER-GENERATORS  SHALL  NOT  BE  ASSESSED
   49  STANDBY   CHARGES   ON   THE   ELECTRICAL  GENERATING  CAPACITY  OR  THE
   50  KILOWATT-HOUR PRODUCTION OF AN ELIGIBLE TECHNOLOGY. THE CHARGES FOR  ALL
   51  RETAIL  RATE  COMPONENTS FOR ELIGIBLE CUSTOMER-GENERATORS SHALL BE BASED
   52  EXCLUSIVELY ON THE CUSTOMER-GENERATOR'S  NET  KILOWATT-HOUR  CONSUMPTION
   53  OVER  A  TWELVE MONTH PERIOD, WITHOUT REGARD TO THE CUSTOMER-GENERATOR'S
   54  CHOICE OF ELECTRIC CORPORATION. ANY NEW  OR  ADDITIONAL  DEMAND  CHARGE,
   55  STANDBY CHARGE, CUSTOMER CHARGE, MINIMUM MONTHLY CHARGE, INTERCONNECTION
   56  CHARGE    OR    OTHER   CHARGE   THAT   WOULD   INCREASE   AN   ELIGIBLE
       A. 2927                             6
    1  CUSTOMER-GENERATOR'S COSTS BEYOND THOSE OF OTHER CUSTOMERS IN  THE  RATE
    2  CLASS  TO  WHICH  THE  ELIGIBLE  CUSTOMER-GENERATOR  WOULD  OTHERWISE BE
    3  ASSIGNED ARE CONTRARY TO THE INTENT OF THIS SECTION, AND SHALL NOT  FORM
    4  A PART OF NET ENERGY METERING CONTRACTS OR TARIFFS.
    5    (H)  FOR ALL ELIGIBLE CUSTOMER-GENERATORS TAKING SERVICE UNDER TARIFFS
    6  EMPLOYING "TIME OF USE" RATES, ANY NET MONTHLY CONSUMPTION OF  ELECTRIC-
    7  ITY SHALL BE CALCULATED ACCORDING TO THE TERMS OF THE CONTRACT OR TARIFF
    8  WHICH  THE  SAME CUSTOMER WOULD BE ASSIGNED TO OR BE ELIGIBLE FOR IF THE
    9  CUSTOMER WAS NOT AN ELIGIBLE CUSTOMER-GENERATOR. WHEN THOSE SAME CUSTOM-
   10  ER-GENERATORS ARE NET GENERATORS DURING ANY DISCRETE TIME OF USE PERIOD,
   11  THE NET KILOWATT-HOURS PRODUCED SHALL BE VALUED AT THE  SAME  PRICE  PER
   12  KILOWATT-HOUR  AS THE ELECTRIC CORPORATION WOULD CHARGE FOR RETAIL KILO-
   13  WATT-HOUR SALES DURING THAT SAME TIME OF USE PERIOD AND THAT VALUE SHALL
   14  BE APPLIED AS A CREDIT TO ANY OF THE DISCRETE TIME OF USE PERIODS  UNDER
   15  THE  TARIFF. IF THE ELIGIBLE CUSTOMER-GENERATOR'S TIME OF USE ELECTRICAL
   16  METER IS UNABLE TO MEASURE THE FLOW OF ELECTRICITY  IN  TWO  DIRECTIONS,
   17  THE PROVISIONS OF PARAGRAPH (D) OF THIS SUBDIVISION SHALL APPLY.
   18    5. SAFETY STANDARDS. (A) ON OR BEFORE THREE MONTHS AFTER THE EFFECTIVE
   19  DATE  OF  PARAGRAPH (B) OF THIS SUBDIVISION, THE COMMISSION SHALL ESTAB-
   20  LISH STANDARDS FOR INTERCONNECTION OF GENERATORS,  TAKING  INTO  ACCOUNT
   21  APPLICABLE  INDUSTRY  STANDARDS  INCLUDING IEEE 1541, AND BEST PRACTICES
   22  INCLUDED IN THE INTERSTATE RENEWABLE ENERGY  COUNCIL'S  MODEL  INTERCON-
   23  NECTION  RULES MR-12005. SUCH STANDARDS SHALL NOT BE MORE RESTRICTIVE OF
   24  INTERCONNECTION THAN STANDARDS ESTABLISHED IN FERC ORDERS 2006 AND 2006A
   25  AS OF THE EFFECTIVE DATE OF PARAGRAPH (B) OF THIS SUBDIVISION.
   26    (B) THE COMMISSION SHALL PROMULGATE REGULATIONS ENSURING THAT  SIMPLI-
   27  FIED  CONTRACTS  WILL BE USED FOR THE INTERCONNECTION OF GENERATORS THAT
   28  HAVE A PRODUCTION CAPACITY NOT  EXCEEDING  TWO  THOUSAND  KILOWATTS  AND
   29  SHALL  CONSIDER  THE  BEST  PRACTICES  FOR  CONSUMER  FRIENDLY CONTRACTS
   30  ADOPTED BY NATIONAL  ASSOCIATIONS  OF  STATE  UTILITY  REGULATORS.  SUCH
   31  CONTRACTS  SHALL  NOT  REQUIRE LIABILITY OR OTHER INSURANCE IN EXCESS OF
   32  WHAT IS TYPICALLY CARRIED BY CUSTOMER-GENERATORS FOR GENERAL LIABILITY.
   33    6. SAFETY STANDARDS; NON-RESIDENTIAL SOLAR ELECTRIC GENERATING  EQUIP-
   34  MENT  AND  MICRO-HYDROELECTRIC  GENERATING  EQUIPMENT.  (A) ON OR BEFORE
   35  THREE MONTHS AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION, EACH ELECTRIC
   36  CORPORATION SHALL ESTABLISH STANDARDS THAT ARE NECESSARY FOR NET  ENERGY
   37  METERING  AND  THE  INTERCONNECTION  OF  NON-RESIDENTIAL  SOLAR ELECTRIC
   38  GENERATING EQUIPMENT OR MICRO-HYDROELECTRIC GENERATING EQUIPMENT TO  ITS
   39  SYSTEM  AND  THAT  THE COMMISSION SHALL DETERMINE ARE NECESSARY FOR SAFE
   40  AND ADEQUATE SERVICE AND FURTHER THE PUBLIC POLICY  SET  FORTH  IN  THIS
   41  SECTION. SUCH STANDARDS MAY INCLUDE BUT SHALL NOT BE LIMITED TO:
   42    (I)  EQUIPMENT NECESSARY TO ISOLATE AUTOMATICALLY THE SOLAR GENERATING
   43  SYSTEM OR MICRO-HYDROELECTRIC  GENERATING  EQUIPMENT  FROM  THE  UTILITY
   44  SYSTEM FOR VOLTAGE AND FREQUENCY DEVIATIONS; AND
   45    (II) A MANUAL LOCKABLE DISCONNECT SWITCH PROVIDED BY THE CUSTOMER-GEN-
   46  ERATOR WHICH SHALL BE LOCATED ON THE OUTSIDE OF THE CUSTOMER-GENERATOR'S
   47  PREMISES  AND  EXTERNALLY  ACCESSIBLE  FOR  THE PURPOSE OF ISOLATING THE
   48  SOLAR ELECTRIC GENERATING EQUIPMENT  OR  MICRO-HYDROELECTRIC  GENERATING
   49  EQUIPMENT.
   50    (B)  IN  THE  EVENT  THAT THE TOTAL RATED GENERATING CAPACITY OF SOLAR
   51  ELECTRIC GENERATING EQUIPMENT OR MICRO-HYDROELECTRIC  GENERATING  EQUIP-
   52  MENT  THAT  PROVIDES ELECTRICITY TO THE ELECTRIC CORPORATION THROUGH THE
   53  SAME LOCAL FEEDER LINE EXCEEDS TWENTY PERCENT OF THE RATED  CAPACITY  OF
   54  THE  LOCAL FEEDER LINE, THE ELECTRIC CORPORATION MAY REQUIRE THE CUSTOM-
   55  ER-GENERATOR TO COMPLY WITH REASONABLE MEASURES TO ENSURE SAFETY OF  THE
   56  LOCAL FEEDER LINE.
       A. 2927                             7
    1    (C)  UNLESS OTHERWISE DETERMINED TO BE NECESSARY BY THE COMMISSION, AN
    2  ELECTRIC CORPORATION MAY NOT REQUIRE A CUSTOMER-GENERATOR TO COMPLY WITH
    3  ADDITIONAL SAFETY OR PERFORMANCE STANDARDS, PERFORM  OR  PAY  FOR  ADDI-
    4  TIONAL  TESTS,  OR PURCHASE ADDITIONAL LIABILITY INSURANCE PROVIDED THAT
    5  THE  SOLAR ELECTRIC GENERATING EQUIPMENT OR MICRO-HYDROELECTRIC GENERAT-
    6  ING EQUIPMENT MEETS THE SAFETY STANDARDS ESTABLISHED  PURSUANT  TO  THIS
    7  SUBDIVISION.
    8    (D)  UPON  ITS  OWN MOTION OR UPON A COMPLAINT, THE COMMISSION, OR ITS
    9  DESIGNATED REPRESENTATIVE, MAY INVESTIGATE AND MAKE A  DETERMINATION  AS
   10  TO  THE  REASONABLENESS AND NECESSITY OF THE STANDARDS OR RESPONSIBILITY
   11  FOR COMPLIANCE WITH THE STANDARDS.
   12    7. ELECTRIC RESTRUCTURING.  NOTWITHSTANDING  THE  PROVISIONS  OF  THIS
   13  SECTION,  A CUSTOMER-GENERATOR SHALL COMPLY WITH ANY APPLICABLE DETERMI-
   14  NATIONS OF THE COMMISSION RELATING  TO  RESTRUCTURING  OF  THE  ELECTRIC
   15  INDUSTRY.
   16    8. SEVERABILITY OF PROVISIONS. THE PROVISIONS OF THIS SECTION SHALL BE
   17  SEVERABLE  AND  IF  THE  APPLICATION OF ANY CLAUSE, SENTENCE, PARAGRAPH,
   18  SUBDIVISION, SECTION, OR PART THEREOF  TO  ANY  PERSON  OR  CIRCUMSTANCE
   19  SHALL  BE ADJUDGED BY ANY COURT OF COMPETENT JURISDICTION TO BE INVALID,
   20  SUCH JUDGMENT SHALL NOT NECESSARILY AFFECT, IMPAIR,  OR  INVALIDATE  THE
   21  APPLICATION  OF  ANY  SUCH  CLAUSE,  SENTENCE,  PARAGRAPH,  SUBDIVISION,
   22  SECTION, PART OR REMAINDER THEREOF, AS THE CASE MAY  BE,  TO  ANY  OTHER
   23  PERSON  OR  CIRCUMSTANCE,  BUT SHALL BE CONFINED IN ITS OPERATION TO THE
   24  CLAUSE,  SENTENCE,  PARAGRAPH,  SUBDIVISION,  SECTION  OR  PART  THEREOF
   25  DIRECTLY  INVOLVED  IN THE CONTROVERSY IN WHICH SUCH JUDGMENT SHALL HAVE
   26  BEEN RENDERED.
   27    S 2. Subdivision (h) of section 1020-g of the public authorities  law,
   28  as  amended  by  chapter  546 of the laws of 2011, is amended to read as
   29  follows:
   30    (h) To implement programs and policies designed  to  provide  for  the
   31  interconnection of: (i) [(A)] solar, WIND, FUEL CELL OR FARM WASTE elec-
   32  tric  generating  equipment owned or operated by [residential customers,
   33  (B) farm waste  electric  generating  equipment  owned  or  operated  by
   34  customer-generators,  (C)  solar  electric generating equipment owned or
   35  operated by non-residential customers,  (D)]  CUSTOMER-GENERATORS,  (II)
   36  micro-combined  heat  and  power  generating  equipment owned, leased or
   37  operated by residential customers, [(E)] (III) fuel cell electric gener-
   38  ating equipment owned, leased or operated by residential customers,  and
   39  [(F)]  (IV)  micro-hydroelectric  generating  equipment owned, leased or
   40  operated by customer-generators and for net energy  metering  consistent
   41  with  section  sixty-six-j  of  the  public service law, to increase the
   42  efficiency of energy end use, to  shift  demand  from  periods  of  high
   43  demand  to  periods  of  low demand and to facilitate the development of
   44  cogeneration[; and (ii) wind  electric  generating  equipment  owned  or
   45  operated  by  customer-generators and for net energy metering consistent
   46  with section sixty-six-l of the public service law].
   47    S 3. This act shall take effect immediately.