S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         6804
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                     April 2, 2015
                                      ___________
       Introduced  by M. of A. FINCH -- 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-metering for non-residential customers of electric
         corporations which own, lease or operate micro-combined heat and power
         generating equipment
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Paragraph  (a)  of  subdivision  1 of section 66-j of the
    2  public service law, as amended by chapter  546  of  the  laws  of  2011,
    3  subparagraphs  (iv)  and (v) as separately amended and subparagraph (vi)
    4  as added by chapter 530 of the laws of 2011 and subparagraphs (vii)  and
    5  (viii)  as amended and (ix) as added by chapter 494 of the laws of 2014,
    6  is amended to read as follows:
    7    (a) "Customer-generator" means: (i) a residential customer of an elec-
    8  tric corporation, who owns or operates solar electric generating  equip-
    9  ment  located  and  used  at his or her residence; (ii) a customer of an
   10  electric corporation, who owns or operates farm waste electric  generat-
   11  ing  equipment  located and used at his or her "farm operation," as such
   12  term is defined in subdivision eleven of section three  hundred  one  of
   13  the  agriculture and markets law; (iii) a non-residential customer of an
   14  electric corporation which owns or operates  solar  electric  generating
   15  equipment  located and used at its premises; (iv) a residential customer
   16  of an electric corporation who owns, leases or  operates  micro-combined
   17  heat  and power generating equipment located on the customer's premises;
   18  (v) A NON-RESIDENTIAL CUSTOMER OF AN ELECTRIC  CORPORATION  WHICH  OWNS,
   19  LEASES  OR  OPERATES  MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT
   20  LOCATED ON THE CUSTOMER'S PREMISES; (VI) a residential  customer  of  an
   21  electric  corporation  who owns, leases or operates fuel cell generating
   22  equipment located on the customer's premises; [and (vi)] (VII) a non-re-
   23  sidential customer of an electric corporation who owns, leases or  oper-
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09135-05-5
       A. 6804                             2
    1  ates  fuel  cell generating equipment located and used at the customer's
    2  premises; [(vii)] (VIII) a residential customer of  an  electric  corpo-
    3  ration,  who  owns  or operates micro-hydroelectric generating equipment
    4  located  and  used at his or her residence; [(viii)] (IX) a non-residen-
    5  tial customer of an electric corporation which owns or  operates  micro-
    6  hydroelectric generating equipment located and used at its premises; and
    7  [(ix)]  (X)  a non-residential customer of an electric corporation which
    8  owns or operates farm waste electric generating  equipment  located  and
    9  used at its premises.
   10    S  2.  Paragraph  (f)  of  subdivision 1 of section 66-j of the public
   11  service law, as added by chapter 355 of the laws of 2009, is amended  to
   12  read as follows:
   13    (f) "Micro-combined heat and power generating equipment" means (I) (A)
   14  IN  THE  CASE  OF  A  RESIDENTIAL CUSTOMER, an integrated, co-generating
   15  building heating and electrical power generation  system,  operating  on
   16  any  fuel  and of any applicable engine, fuel cell, or other technology,
   17  with a rated capacity of [at least one kilowatt and] not more  than  ten
   18  kilowatts electric and any thermal output that at full load has a design
   19  total  fuel  use efficiency in the production of heat and electricity of
   20  not less than eighty percent, and annually produces at least  two  thou-
   21  sand kilowatt hours of useful energy in the form of electricity that may
   22  work  in  combination with supplemental or parallel conventional heating
   23  systems[,]; AND (B) IN THE CASE OF A NON-RESIDENTIAL CUSTOMER, AN  INTE-
   24  GRATED,  CO-GENERATING  BUILDING HEATING AND ELECTRICAL POWER GENERATION
   25  SYSTEM, OPERATING ON ANY FUEL AND OF ANY APPLICABLE ENGINE,  FUEL  CELL,
   26  OR  OTHER TECHNOLOGY, WITH A RATED CAPACITY OF NOT MORE THAN TWENTY-FIVE
   27  KILOWATTS ELECTRIC AND ANY THERMAL OUTPUT THAT A FULL LOAD HAS A  DESIGN
   28  TOTAL  FUEL  USE EFFICIENCY IN THE PRODUCTION OF HEAT AND ELECTRICITY OF
   29  NOT LESS THAN EIGHTY PERCENT, AND ANNUALLY PRODUCES AT LEAST  TWO  THOU-
   30  SAND KILOWATT HOURS OF USEFUL ENERGY IN THE FORM OF ELECTRICITY THAT MAY
   31  WORK  IN  COMBINATION WITH SUPPLEMENTAL OR PARALLEL CONVENTIONAL HEATING
   32  SYSTEMS; AND (II)  that  is  manufactured,  installed  and  operated  in
   33  accordance  with  applicable  government and industry standards, that is
   34  connected to the electric system and operated  in  conjunction  with  an
   35  electric corporation's transmission and distribution facilities.
   36    S  3.  Subparagraph (i) of paragraph (c) and paragraph (e) of subdivi-
   37  sion 3 of section 66-j of the public service law, as amended by  chapter
   38  546 of the laws of 2011, are amended to read as follows:
   39    (i)  In  the  case  of a customer-generator who owns or operates solar
   40  electric generating equipment, micro-combined heat and power  generating
   41  equipment,  fuel  cell electric generating equipment or micro-hydroelec-
   42  tric generating equipment located and used at his or her residence, or a
   43  non-residential customer-generator who owns or operates  solar  electric
   44  generating  equipment OR MICRO-COMBINED HEAT AND POWER GENERATING EQUIP-
   45  MENT with a rated capacity of not more than twenty-five kilowatts, up to
   46  a maximum amount of three hundred fifty dollars;
   47    (e) A customer who owns or operates a farm operation as such  term  is
   48  defined  in subdivision eleven of section three hundred one of the agri-
   49  culture and markets law,  or  a  non-residential  customer-generator  as
   50  defined  by  [subparagraph] SUBPARAGRAPHS (iii) AND (V) of paragraph (a)
   51  of subdivision one of this section that locates solar electric  generat-
   52  ing  equipment,  MICRO-COMBINED  HEAT  AND POWER GENERATING EQUIPMENT or
   53  farm waste electric generating equipment with  a  net  energy  meter  on
   54  property owned or leased by such customer-generator may designate all or
   55  a  portion  of  the  net metering credits generated by such equipment to
   56  meters at any property owned or leased by such customer-generator within
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    1  the service 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    S 4. Paragraphs (a), (b) and (c) of subdivision 5-a of section 66-j of
   11  the public service law, as amended by chapter 546 of the laws  of  2011,
   12  are amended to read as follows:
   13    (a)  On or before three months after the effective date of this subdi-
   14  vision, each electric corporation shall  establish  standards  that  are
   15  necessary  for  net energy metering and the interconnection of non-resi-
   16  dential solar electric generating  equipment  [or],  micro-hydroelectric
   17  generating  equipment OR MICRO-COMBINED HEAT AND POWER GENERATING EQUIP-
   18  MENT to its system and that the commission shall determine are necessary
   19  for safe and adequate service and further the public policy set forth in
   20  this section. Such standards may include but shall not be limited to:
   21    (i) equipment necessary to isolate automatically the solar  generating
   22  system  [or], micro-hydroelectric generating equipment OR MICRO-COMBINED
   23  HEAT AND POWER GENERATING EQUIPMENT from the utility system for  voltage
   24  and frequency deviations; and
   25    (ii) a manual lockable disconnect switch provided by the customer-gen-
   26  erator which shall be located on the outside of the customer-generator's
   27  premises  and  externally  accessible  for  the purpose of isolating the
   28  solar electric generating equipment [or], micro-hydroelectric generating
   29  equipment OR MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT.
   30    (b) In the event that the total rated  generating  capacity  of  solar
   31  electric   generating  equipment  [or],  micro-hydroelectric  generating
   32  equipment OR MICRO-COMBINED HEAT AND  POWER  GENERATING  EQUIPMENT  that
   33  provides  electricity to the electric corporation through the same local
   34  feeder line exceeds twenty percent of the rated capacity  of  the  local
   35  feeder line, the electric corporation may require the customer-generator
   36  to  comply with reasonable measures to ensure safety of the local feeder
   37  line.
   38    (c) Unless otherwise determined to be necessary by the commission,  an
   39  electric corporation may not require a customer-generator to comply with
   40  additional  safety  or  performance  standards, perform or pay for addi-
   41  tional tests, or purchase additional liability insurance  provided  that
   42  the solar electric generating equipment [or], micro-hydroelectric gener-
   43  ating  equipment  OR  MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT
   44  meets the safety standards established pursuant to this subdivision.
   45    S 5. Subdivision (h) of section 1020-g of the public authorities  law,
   46  as  amended  by  chapter  546 of the laws of 2011, is amended to read as
   47  follows:
   48    (h) To implement programs and policies designed  to  provide  for  the
   49  interconnection of: (i) (A) solar electric generating equipment owned or
   50  operated  by  residential  customers, (B) farm waste electric generating
   51  equipment owned or operated by customer-generators, (C)  solar  electric
   52  generating equipment owned or operated by non-residential customers, (D)
   53  micro-combined  heat  and  power  generating  equipment owned, leased or
   54  operated by residential customers, (E)  fuel  cell  electric  generating
   55  equipment  owned, leased or operated by residential customers, [and] (F)
   56  MICRO-COMBINED HEAT AND POWER GENERATING  EQUIPMENT  OWNED,  LEASED,  OR
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    1  OPERATED  BY  NON-RESIDENTIAL  CUSTOMERS,  AND  (G)  micro-hydroelectric
    2  generating equipment owned, leased or  operated  by  customer-generators
    3  and  for  net energy metering consistent with section sixty-six-j of the
    4  public  service  law,  to  increase the efficiency of energy end use, to
    5  shift demand from periods of high demand to periods of low demand and to
    6  facilitate the development  of  cogeneration;  and  (ii)  wind  electric
    7  generating  equipment  owned  or operated by customer-generators and for
    8  net energy metering consistent with section sixty-six-l  of  the  public
    9  service law.
   10    S  6.  This  act  shall take effect on the sixtieth day after it shall
   11  have become a law.