STATE OF NEW YORK
________________________________________________________________________
2442--C
2009-2010 Regular Sessions
IN ASSEMBLY
January 15, 2009
___________
Introduced by M. of A. DESTITO, BENEDETTO, LUPARDO -- read once and
referred to the Committee on Energy -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee -- again reported from said committee with amendments, ordered
reprinted as amended and recommitted to said committee -- again
reported from said committee with amendments, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the public service law and public authorities law, in
relation to the net energy metering for micro-combined heat and power
generating systems
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 66-j of the public service law, as added by chapter
2 399 of the laws of 1997, the section heading, paragraphs (a), (d) and
3 (e) of subdivision 1, subdivision 2, paragraphs (a), (b) and (c) of
4 subdivision 3, paragraphs (c) and (d) of subdivision 4 as amended and
5 subdivision 5-a as added by chapter 452 of the laws of 2008, subdivi-
6 sions 1, 3, 4 and 5 as amended by chapter 515 of the laws of 2002, and
7 paragraph (b) and the opening paragraph of paragraph (e) of subdivision
8 1 as amended by chapter 480 of the laws of 2008, is amended to read as
9 follows:
10 § 66-j. Net energy metering for residential solar, farm waste [or],
11 non-residential solar electric generating systems, micro-combined heat
12 and power generating equipment, or fuel cell electric generating equip-
13 ment. 1. Definitions. As used in this section, the following terms
14 shall have the following meanings:
15 (a) "Customer-generator" means: (i) a residential customer of an elec-
16 tric corporation, who owns or operates solar electric generating equip-
17 ment located and used at his or her residence; (ii) a customer of an
18 electric corporation, who owns or operates farm waste electric generat-
19 ing equipment located and used at his or her "farm operation," as such
20 term is defined in subdivision eleven of section three hundred one of
21 the agriculture and markets law; [and] (iii) a non-residential customer
22 of an electric corporation which owns or operates solar electric gener-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03886-06-9
A. 2442--C 2
1 ating equipment located and used at its premises; (iv) a residential
2 customer of an electric corporation who owns, leases or operates micro-
3 combined heat and power generating equipment located on the customer's
4 premises; and (v) a residential customer of an electric corporation who
5 owns, leases or operates fuel cell generating equipment located on the
6 customer's premises.
7 (b) "Net energy meter" means a meter that measures the reverse flow of
8 electricity to register the difference between the electricity supplied
9 by an electric corporation to the customer-generator and the electricity
10 provided to the corporation by that customer-generator.
11 (c) "Net energy metering" means the use of a net energy meter to meas-
12 ure, during the billing period applicable to a customer-generator, the
13 net amount of electricity supplied by an electric corporation and
14 provided to the corporation by a customer-generator.
15 (d) "Solar electric generating equipment" means a photovoltaic system
16 (i) (A) in the case of a residential customer, with a rated capacity of
17 not more than twenty-five kilowatts; and (B) in the case of a non-resi-
18 dential customer, with a rated capacity of not more than the lesser of
19 two thousand kilowatts or such customer's peak load as measured over the
20 prior twelve month period, or in the case that such twelve month period
21 of measurement is not available, then as determined by the commission
22 based on its analysis of comparable facilities; and (ii) that is manu-
23 factured, installed, and operated in accordance with applicable govern-
24 ment and industry standards, that is connected to the electric system
25 and operated in conjunction with an electric corporation's transmission
26 and distribution facilities, and that is operated in compliance with any
27 standards and requirements established under this section.
28 (e) "Farm waste electric generating equipment" means equipment that
29 generates electric energy from biogas produced by the anaerobic
30 digestion of agricultural waste, such as livestock manure, farming
31 wastes and food processing wastes with a rated capacity of not more than
32 five hundred kilowatts, that is:
33 [i.] (i) manufactured, installed, and operated in accordance with
34 applicable government and industry standards;
35 [ii.] (ii) connected to the electric system and operated in conjunc-
36 tion with an electric corporation's transmission and distribution facil-
37 ities;
38 [iii.] (iii) operated in compliance with any standards and require-
39 ments established under this section;
40 [iv.] (iv) fueled at a minimum of ninety percent on an annual basis by
41 biogas produced from the anaerobic digestion of agricultural waste such
42 as livestock manure materials, crop residues, and food processing waste;
43 and
44 [v.] (v) fueled by biogas generated by anaerobic digestion with at
45 least fifty percent by weight of its feedstock being livestock manure
46 materials on an annual basis.
47 (f) "Micro-combined heat and power generating equipment" means an
48 integrated, cogenerating building heating and electrical power gener-
49 ation system, operating on any fuel and of any applicable engine, fuel
50 cell, or other technology, with a rated capacity of at least one kilo-
51 watt and not more than ten kilowatts electric and any thermal output
52 that at full load has a design total fuel use efficiency in the
53 production of heat and electricity of not less than eighty percent, and
54 annually produces at least two thousand kilowatt hours of useful energy
55 in the form of electricity that may work in combination with supple-
56 mental or parallel conventional heating systems, that is manufactured,
A. 2442--C 3
1 installed and operated in accordance with applicable government and
2 industry standards, that is connected to the electric system and oper-
3 ated in conjunction with an electric corporation's transmission and
4 distribution facilities.
5 (g) "Fuel cell electric generating equipment" means a solid oxide,
6 molten carbonate, proton exchange membrane or phosphoric acid fuel cell
7 with a combined rated capacity of not more than ten kilowatts that is
8 manufactured, installed and operated in accordance with applicable
9 government and industry standards, that is connected to the electric
10 system and operated in parallel with an electric corporation's trans-
11 mission and distribution facilities, and that is operated in compliance
12 with any standards and requirements established under this section.
13 2. Interconnection and net energy metering. An electric corporation
14 shall provide for the interconnection of solar and farm waste electric
15 generating equipment, micro-combined heat and power generating equipment
16 and fuel cell electric generating equipment owned or operated by a
17 customer-generator and for net energy metering, provided that the
18 customer-generator enters into a net energy metering contract with the
19 corporation or complies with the corporation's net energy metering sche-
20 dule and complies with standards and requirements established under this
21 section.
22 3. Conditions of service. (a) (i) On or before three months after the
23 effective date of this section, each electric corporation shall develop
24 a model contract and file a schedule that establishes consistent and
25 reasonable rates, terms and conditions for net energy metering to
26 customer-generators, according to the requirements of this section. The
27 commission shall render a decision within three months from the date on
28 which the schedule is filed.
29 (ii) On or before three months after the effective date of this
30 subparagraph, each electric corporation shall develop a model contract
31 and file a schedule that establishes consistent and reasonable rates,
32 terms and conditions for net energy metering to non-residential customer
33 generators, according to the requirements of this section. The commis-
34 sion shall render a decision within three months of the date on which
35 the schedule is filed.
36 (iii) Each electric corporation shall make such contract and schedule
37 available to customer-generators on a first come, first served basis,
38 until the total rated generating capacity for solar and farm waste elec-
39 tric generating equipment, micro-combined heat and power generating
40 equipment and fuel cell electric generating equipment owned, leased or
41 operated by customer-generators in the corporation's service area is
42 equivalent to one percent of the corporation's electric demand for the
43 year two thousand five, as determined by the department.
44 (b) Nothing in this subdivision shall prohibit a corporation from
45 providing net energy metering to additional customer-generators. The
46 commission shall have the authority, after January first, two thousand
47 twelve, to increase the percent limits if it determines that additional
48 net energy metering is in the public interest.
49 (c) In the event that the electric corporation determines that it is
50 necessary to install a dedicated transformer or transformers, or other
51 equipment to protect the safety and adequacy of electric service
52 provided to other customers, a customer-generator shall pay the electric
53 corporation's actual costs of installing the transformer or transfor-
54 mers, or other equipment:
55 (i) In the case of a customer-generator who owns or operates solar
56 electric generating equipment, micro-combined heat and power generating
A. 2442--C 4
1 equipment or fuel cell electric generating equipment located and used at
2 his or her residence[;], up to a maximum amount of three hundred fifty
3 dollars[.];
4 (ii) In the case of a customer-generator who owns or operates farm
5 waste electric generating equipment located and used at his or her "farm
6 operation," up to a total amount of five thousand dollars per "farm
7 operation"[.]; and
8 (iii) In the case of a non-residential customer-generator who owns or
9 operates solar electric generating equipment located and used at its
10 premises, such cost shall be as determined by the department pursuant to
11 standards established thereby.
12 (d) An electric corporation shall impose no other charge or fee,
13 including back-up, stand by and demand charges, for the provision of net
14 energy metering to a customer-generator, except as provided in paragraph
15 (d) of subdivision four of this section.
16 4. Rates. An electric corporation shall use net energy metering to
17 measure and charge for the net electricity supplied by the corporation
18 and provided to the corporation by a customer-generator, according to
19 these requirements:
20 (a) In the event that the amount of electricity supplied by the corpo-
21 ration during the billing period exceeds the amount of electricity
22 provided by a customer-generator, the corporation shall charge the
23 customer-generator for the net electricity supplied at the same rate per
24 kilowatt hour applicable to service provided to other customers in the
25 same service class which do not generate electricity onsite.
26 (b) In the event that the amount of electricity produced by a custom-
27 er-generator during the billing period exceeds the amount of electricity
28 used by the customer-generator, the corporation shall apply a credit to
29 the next bill for service to the customer-generator for the net elec-
30 tricity provided at the same rate per kilowatt hour applicable to
31 service provided to other customers in the same service class which do
32 not generate electricity onsite, except for micro-combined heat and
33 power or fuel cell customer-generators, who will be credited at the
34 corporation's avoided costs. The avoided cost credit provided to micro-
35 combined heat and power or fuel cell customer-generators shall be treat-
36 ed for ratemaking purposes as a purchase of electricity in the market
37 that is includable in commodity costs.
38 (c) At the end of the year or annualized over the period that service
39 is supplied by means of net energy metering, the corporation shall
40 promptly issue payment at its avoided cost to the customer-generator, as
41 defined in subparagraph (i) or (ii) of paragraph (a) of subdivision one
42 of this section, for the value of any remaining credit for the excess
43 electricity produced during the year or over the annualized period by
44 the customer-generator.
45 (d) In the event that the corporation imposes charges based on kilo-
46 watt demand on customers who are in the same service class as the
47 customer-generator but which do not generate electricity on site, the
48 corporation may impose the same charges at the same rates to the custom-
49 er-generator, provided, however, that the kilowatt demand for such
50 demand charges is determined by the maximum measured kilowatt demand
51 actually supplied by the corporation to the customer-generator during
52 the billing period.
53 5. Safety standards. (a) On or before three months after the effective
54 date of this section, each electric corporation shall establish stand-
55 ards that are necessary for net energy metering and the interconnection
56 of residential solar or farm waste electric generating equipment,
A. 2442--C 5
1 micro-combined heat and power generating equipment and fuel cell elec-
2 tric generating equipment to its system and that the commission shall
3 determine are necessary for safe and adequate service and further the
4 public policy set forth in this section. Such standards may include but
5 shall not be limited to:
6 (i) equipment necessary to isolate automatically the residential solar
7 [and], farm waste, micro-combined heat and power and fuel cell electric
8 generating system from the utility system for voltage and frequency
9 deviations; and
10 (ii) a manual lockable disconnect switch provided by the customer-gen-
11 erator which shall be located on the outside of the customer's premises
12 and externally accessible for the purpose of isolating the residential
13 solar and farm waste electric generating equipment.
14 (b) Upon its own motion or upon a complaint, the commission, or its
15 designated representative, may investigate and make a determination as
16 to the reasonableness and necessity of the standards or responsibility
17 for compliance with the standards.
18 (i) In the case of a customer-generator who owns or operates solar
19 electric generating equipment located and used at his or her residence;
20 an electric corporation may not require a customer-generator to comply
21 with additional safety or performance standards, perform or pay for
22 additional tests, or purchase additional liability insurance provided
23 that the residential solar or farm waste electric generating equipment,
24 micro-combined heat and power generating equipment or fuel cell electric
25 generating equipment meets the safety standards established pursuant to
26 this paragraph.
27 (ii) In the case of a customer-generator who owns or operates farm
28 waste electric generating equipment located and used at his or her "farm
29 operation," an electric corporation may not require a customer-generator
30 to comply with additional safety or performance standards, perform or
31 pay for additional tests, or purchase additional liability insurance
32 provided that:
33 1. the electric generating equipment meets the safety standards estab-
34 lished pursuant to this paragraph; and
35 2. the total rated generating capacity (measured in kW) of farm waste
36 electric generating equipment that provides electricity to the electric
37 corporation through the same local feeder line, does not exceed twenty
38 percent of the rated capacity of that local feeder line.
39 (iii) In the event that the total rated generating capacity of farm
40 waste electric generating equipment that provides electricity to the
41 electric corporation through the same local feeder line exceeds twenty
42 percent of the rated capacity of the local feeder line, the electric
43 corporation may require the customer-generator to comply with reasonable
44 measures to ensure safety of that local feeder line.
45 5-a. Safety standards; non-residential solar electric generating
46 equipment. (a) On or before three months after the effective date of
47 this subdivision, each electric corporation shall establish standards
48 that are necessary for net energy metering and the interconnection of
49 non-residential solar electric generating equipment to its system and
50 that the commission shall determine are necessary for safe and adequate
51 service and further the public policy set forth in this section. Such
52 standards may include but shall not be limited to:
53 (i) equipment necessary to isolate automatically the solar generating
54 system from the utility system for voltage and frequency deviations; and
55 (ii) a manual lockable disconnect switch provided by the customer-gen-
56 erator which shall be located on the outside of the customer-generator's
A. 2442--C 6
1 premises and externally accessible for the purpose of isolating the
2 solar electric generating equipment.
3 (b) In the event that the total rated generating capacity of solar
4 electric generating equipment that provides electricity to the electric
5 corporation through the same local feeder line exceeds twenty percent of
6 the rated capacity of the local feeder line, the electric corporation
7 may require the customer-generator to comply with reasonable measures to
8 ensure safety of the local feeder line.
9 (c) Unless otherwise determined to be necessary by the commission, an
10 electric corporation may not require a customer-generator to comply with
11 additional safety or performance standards, perform or pay for addi-
12 tional tests, or purchase additional liability insurance provided that
13 the solar electric generating equipment meets the safety standards
14 established pursuant to this subdivision.
15 (d) Upon its own motion or upon a complaint, the commission, or its
16 designated representative, may investigate and make a determination as
17 to the reasonableness and necessity of the standards or responsibility
18 for compliance with the standards.
19 6. Electric restructuring. Notwithstanding the provisions of this
20 section, including, but not limited to paragraph (b) of subdivision
21 three of this section, a customer-generator shall comply with any appli-
22 cable determinations of the commission relating to restructuring of the
23 electric industry.
24 7. Severability of provisions. The provisions of this section shall be
25 severable and if the application of any clause, sentence, paragraph,
26 subdivision, section, or part thereof to any person or circumstance
27 shall be adjudged by any court of competent jurisdiction to be invalid,
28 such judgment shall not necessarily affect, impair, or invalidate the
29 application of any such clause, sentence, paragraph, subdivision,
30 section, part or remainder thereof, as the case may be, to any other
31 person, circumstance, but shall be confined in its operation to the
32 clause, sentence, paragraph, subdivision, section or part thereof
33 directly involved in the controversy in which such judgment shall have
34 been rendered.
35 § 2. Subdivision (h) of section 1020-g of the public authorities law,
36 as amended by chapter 452 of the laws of 2008, is amended to read as
37 follows:
38 (h) To implement programs and policies designed to provide for the
39 interconnection of: (i) (A) solar electric generating equipment owned or
40 operated by residential customers, (B) farm waste electric generating
41 equipment owned or operated by customer-generators, [and] (C) solar
42 electric generating equipment owned or operated by non-residential
43 customers, (D) micro-combined heat and power generating equipment owned,
44 leased or operated by residential customers, and (E) fuel cell electric
45 generating equipment owned, leased or operated by residential customers,
46 and for net energy metering consistent with section sixty-six-j of the
47 public service law, to increase the efficiency of energy end use, to
48 shift demand from periods of high demand to periods of low demand and to
49 facilitate the development of cogeneration; and (ii) wind electric
50 generating equipment owned or operated by customer-generators and for
51 net energy metering consistent with section sixty-six-l of the public
52 service law.
53 § 3. This act shall take effect immediately.
