Bill Text: NY A05553 | 2011-2012 | General Assembly | Introduced


Bill Title: Provides for the net energy metering of solar, wind, fuel cell and farm waste electric generating systems for both residential and business customers; increases the rated capacity of eligible solar electric generating equipment to 2,000 kilowatts; provides for the metering and fees for such electric generating equipment.

Sponsorship: Moderate Partisan Bill (Democrat 37-6)

Status: (Introduced - Dead) 2012-01-04 - referred to energy [A05553 Detail]

Download: New_York-2011-A05553-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5553
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                   February 23, 2011
                                      ___________
       Introduced by M. of A. ENGLEBRIGHT, BENEDETTO, SWEENEY, REILLY, DESTITO,
         JACOBS,  MAISEL,  J. RIVERA,  MARKEY, GALEF, MILLMAN, CAHILL, GUNTHER,
         LUPARDO,  MAGNARELLI,  SCHIMMINGER,  HOOPER,   O'DONNELL,   ROSENTHAL,
         BROOK-KRASNY, SPANO, TITONE, JAFFEE, KAVANAGH -- Multi-Sponsored by --
         M. of A. BING, BOYLAND, BRENNAN, CALHOUN, COLTON, CONTE, COOK, GIGLIO,
         GOTTFRIED, JEFFRIES, KOLB, LATIMER, P. LOPEZ, MAGEE, MAYERSOHN, McENE-
         NY,  PAULIN,  PHEFFER,  WEISENBERG  --  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 section 66-l of the
         public service law relating to net  energy  metering  for  residential
         and/or farm service wind electric generating systems
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The section heading and subdivisions 1, 2, 3, 4  and  5  of
    2  section 66-j of the public service law, as amended by chapter 355 of the
    3  laws  of  2009, paragraph (d) of subdivision 1 and subparagraphs (i) and
    4  (iii) of paragraph (c) of subdivision 3 as amended by chapter 7  of  the
    5  laws  of 2010, and the opening paragraph of paragraph (e) of subdivision
    6  1 as amended by chapter 336 of the laws of 2010, are amended to read  as
    7  follows:
    8    Net  energy  metering for [residential] solar, WIND, FUEL CELL OR farm
    9  waste[, non-residential solar] electric generating  systems,  OR  micro-
   10  combined  heat  and  power  generating equipment[, or fuel cell electric
   11  generating equipment]. 1. Definitions. As  used  in  this  section,  the
   12  following terms shall have the following meanings:
   13    (a) "Customer-generator" means: (i) [a residential] ANY customer of an
   14  electric  corporation,  who  owns  or  operates solar, WIND OR FUEL CELL
   15  electric generating equipment, OR ANY HYBRID EQUIPMENT COMPOSED OF THESE
   16  THREE TECHNOLOGIES located and used at his or her [residence]  PREMISES;
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08906-01-1
       A. 5553                             2
    1  (ii)  a  customer  of an electric corporation, who owns or operates farm
    2  waste electric generating equipment located and used at his or her "farm
    3  operation," as such term is defined in  subdivision  eleven  of  section
    4  three  hundred one of the agriculture and markets law; AND (iii) [a non-
    5  residential customer of an electric corporation which owns  or  operates
    6  solar  electric  generating  equipment located and used at its premises;
    7  (iv)] a residential customer of an electric corporation who owns, leases
    8  or operates micro-combined heat and power generating  equipment  located
    9  on  the customer's premises[; and (v) a residential customer of an elec-
   10  tric corporation who owns,  leases  or  operates  fuel  cell  generating
   11  equipment located on the customer's premises].
   12    (b) "Net energy meter" means a meter that measures the reverse flow of
   13  electricity  to register the difference between the electricity supplied
   14  by an electric corporation to the customer-generator and the electricity
   15  provided to the corporation by that customer-generator.
   16    (c) "Net energy metering" means the use of a net energy meter to meas-
   17  ure, during the billing period applicable to a  customer-generator,  the
   18  net  amount  of  electricity  supplied  by  an  electric corporation and
   19  provided to the corporation by a customer-generator.
   20    (d) "Solar electric generating equipment" means a photovoltaic  system
   21  (i) [(A) in the case of a residential customer, with a rated capacity of
   22  not  more than twenty-five kilowatts; and (B) in the case of a non-resi-
   23  dential customer,] with a rated capacity of not more than  two  thousand
   24  kilowatts;  and  (ii)  that  is manufactured, installed, and operated in
   25  accordance with applicable government and industry  standards,  that  is
   26  connected  to the electric system and operated in [conjunction] PARALLEL
   27  with an electric corporation's transmission and distribution facilities,
   28  and that is operated in compliance with any standards  and  requirements
   29  established under this section.
   30    (e)  "Farm  waste  electric generating equipment" means equipment that
   31  generates  electric  energy  from  biogas  produced  by  the   anaerobic
   32  digestion  of  agricultural  waste,  such  as  livestock manure, farming
   33  wastes and food processing wastes with a rated capacity of not more than
   34  [one] TWO thousand kilowatts, that is:
   35    (i) manufactured, installed, and operated in accordance with  applica-
   36  ble government and industry standards;
   37    (ii) connected to the electric system and operated in conjunction with
   38  an electric corporation's transmission and distribution facilities;
   39    (iii)  operated  in  compliance  with  any  standards and requirements
   40  established under this section;
   41    (iv) fueled at a minimum of ninety  percent  on  an  annual  basis  by
   42  biogas  produced from the anaerobic digestion of agricultural waste such
   43  as livestock manure materials, crop residues, and food processing waste;
   44  and
   45    (v) fueled by biogas generated by anaerobic digestion  with  at  least
   46  fifty  percent by weight of its feedstock being livestock manure materi-
   47  als on an annual basis.
   48    (f) "Micro-combined heat and  power  generating  equipment"  means  an
   49  integrated,  cogenerating  building  heating and electrical power gener-
   50  ation system, operating on any fuel and of any applicable  engine,  fuel
   51  cell,  or  other technology, with a rated capacity of at least one kilo-
   52  watt and not more than ten kilowatts electric  and  any  thermal  output
   53  that  at  full  load  has  a  design  total  fuel  use efficiency in the
   54  production of heat and electricity of not less than eighty percent,  and
   55  annually  produces at least two thousand kilowatt hours of useful energy
   56  in the form of electricity that may work  in  combination  with  supple-
       A. 5553                             3
    1  mental  or  parallel conventional heating systems, that is manufactured,
    2  installed and operated in  accordance  with  applicable  government  and
    3  industry  standards,  that is connected to the electric system and oper-
    4  ated  in  conjunction  with  an  electric corporation's transmission and
    5  distribution facilities.
    6    (g) "Fuel cell electric generating equipment"  means  a  solid  oxide,
    7  molten  carbonate, proton exchange membrane or phosphoric acid fuel cell
    8  with a combined rated capacity of not more than [ten] TWO THOUSAND kilo-
    9  watts that is manufactured, installed and operated  in  accordance  with
   10  applicable  government  and industry standards, that is connected to the
   11  electric system and operated in parallel with an electric  corporation's
   12  transmission  and  distribution  facilities,  and  that  is  operated in
   13  compliance with any standards and requirements  established  under  this
   14  section.
   15    (H)  "WIND  ELECTRIC  GENERATING  EQUIPMENT" MEANS A WIND GENERATOR OR
   16  GENERATORS WITH A COMBINED RATED CAPACITY OF NOT MORE THAN TWO  THOUSAND
   17  KILOWATTS  THAT  IS  MANUFACTURED,  INSTALLED AND OPERATED IN ACCORDANCE
   18  WITH APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS, THAT IS CONNECTED  TO
   19  THE  ELECTRIC  SYSTEM  AND  OPERATED IN PARALLEL WITH AN ELECTRIC CORPO-
   20  RATION'S TRANSMISSION AND DISTRIBUTION FACILITIES, AND THAT IS  OPERATED
   21  IN COMPLIANCE WITH ANY STANDARDS AND REQUIREMENTS ESTABLISHED UNDER THIS
   22  SECTION.
   23    (I)  "ELECTRIC CORPORATION" MEANS ANY PUBLIC OR PRIVATELY OWNED ENTITY
   24  THAT OFFERS RETAIL ELECTRICAL SERVICE TO END-USE ELECTRIC CONSUMERS.
   25    (J) "ELIGIBLE TECHNOLOGIES" MEANS THE SOLAR, WIND, FUEL CELL  OR  FARM
   26  WASTE ELECTRIC GENERATING EQUIPMENT.
   27    2.  Interconnection  and  net energy metering. An electric corporation
   28  shall provide for the interconnection of [solar and farm waste  electric
   29  generating equipment] ELIGIBLE TECHNOLOGIES, AND micro-combined heat and
   30  power generating equipment [and fuel cell electric generating equipment]
   31  owned  or  operated by a customer-generator and for net energy metering,
   32  provided that the customer-generator enters into a net  energy  metering
   33  contract  with  the  corporation  or complies with the corporation's net
   34  energy metering schedule and complies with  standards  and  requirements
   35  established under this section.
   36    3.  Conditions  of  service. (a) [(i)] On or before three months after
   37  the effective date of this  section,  each  electric  corporation  shall
   38  develop a model contract and file a schedule that establishes consistent
   39  and  reasonable  rates,  terms and conditions for net energy metering to
   40  customer-generators, according to the requirements of this section.  The
   41  commission  shall render a decision within three months from the date on
   42  which the schedule is filed.
   43    [(ii) On or before three months  after  the  effective  date  of  this
   44  subparagraph,  each  electric corporation shall develop a model contract
   45  and file a schedule that establishes consistent  and  reasonable  rates,
   46  terms and conditions for net energy metering to non-residential customer
   47  generators,  according  to the requirements of this section. The commis-
   48  sion shall render a decision within three months of the  date  on  which
   49  the schedule is filed.
   50    (iii)  Each electric corporation shall make such contract and schedule
   51  available to customer-generators on a first come,  first  served  basis,
   52  until the total rated generating capacity for solar and farm waste elec-
   53  tric  generating  equipment,  micro-combined  heat  and power generating
   54  equipment and fuel cell electric generating equipment owned,  leased  or
   55  operated  by  customer-generators  in  the corporation's service area is
       A. 5553                             4
    1  equivalent to one percent of the corporation's electric demand  for  the
    2  year two thousand five, as determined by the department.]
    3    (b)  [Nothing  in  this  subdivision shall prohibit a corporation from
    4  providing net energy metering  to  additional  customer-generators.  The
    5  commission  shall  have the authority, after January first, two thousand
    6  twelve, to increase the percent limits if it determines that  additional
    7  net energy metering is in the public interest.
    8    (c)  In  the event that the electric corporation determines that it is
    9  necessary to install a dedicated transformer or transformers,  or  other
   10  equipment  to  protect  the  safety  and  adequacy  of  electric service
   11  provided to other customers, a customer-generator shall pay the electric
   12  corporation's actual costs of installing the  transformer  or  transfor-
   13  mers, or other equipment:
   14    (i)  In  the  case  of a customer-generator who owns or operates solar
   15  electric generating equipment, micro-combined heat and power  generating
   16  equipment or fuel cell electric generating equipment located and used at
   17  his  or  her residence, or a non-residential customer-generator who owns
   18  or operates solar electric generating equipment with a rated capacity of
   19  not more than twenty-five kilowatts, up to a  maximum  amount  of  three
   20  hundred fifty dollars;
   21    (ii)  In  the  case  of a customer-generator who owns or operates farm
   22  waste electric generating equipment located and used at his or her "farm
   23  operation," up to a total amount of  five  thousand  dollars  per  "farm
   24  operation"; and
   25    (iii)  In the case of a non-residential customer-generator who owns or
   26  operates solar electric generating equipment with a  rated  capacity  of
   27  more  than  twenty-five kilowatts located and used at its premises, such
   28  cost shall be as determined  by  the  electric  corporation  subject  to
   29  review, upon the request of such customer-generator, by the department.
   30    (d)]  An  electric  corporation  shall  impose no other charge or fee,
   31  including, BUT NOT LIMITED TO, back-up, stand by and demand charges, for
   32  the provision of net energy metering to a customer-generator, except  as
   33  provided in paragraph (d) of subdivision four of this section.
   34    4.  Rates.  An  electric  corporation shall use net energy metering to
   35  measure and charge for the net electricity supplied by  the  corporation
   36  and  provided  to  the corporation by a customer-generator, according to
   37  these requirements:
   38    (a) In the event that the amount of electricity supplied by the corpo-
   39  ration during the billing  period  exceeds  the  amount  of  electricity
   40  provided  by  a  customer-generator,  the  corporation  shall charge the
   41  customer-generator for the net electricity supplied at the same rate per
   42  kilowatt hour applicable to service provided to other customers  in  the
   43  same service class which do not generate electricity onsite.
   44    (b)  In the event that the amount of electricity produced by a custom-
   45  er-generator during the billing period exceeds the amount of electricity
   46  used by the customer-generator, the corporation shall apply a credit  to
   47  the  next  bill  for service to the customer-generator for the net elec-
   48  tricity provided at the  same  rate  per  kilowatt  hour  applicable  to
   49  service  provided  to other customers in the same service class which do
   50  not generate electricity onsite,  except  for  micro-combined  heat  and
   51  power  or  fuel  cell  customer-generators,  who will be credited at the
   52  corporation's avoided costs. The avoided cost credit provided to  micro-
   53  combined heat and power or fuel cell customer-generators shall be treat-
   54  ed  for  ratemaking  purposes as a purchase of electricity in the market
   55  that is includable in commodity costs.
       A. 5553                             5
    1    (c) At the end of the year or annualized over the period that  service
    2  is  supplied  by  means  of  net  energy metering, the corporation shall
    3  promptly issue payment at its avoided cost to the customer-generator, as
    4  defined in subparagraph (i) or (ii) of paragraph (a) of subdivision  one
    5  of  this  section,  for the value of any remaining credit for the excess
    6  electricity produced during the year or over the  annualized  period  by
    7  the customer-generator.
    8    (d)  In  the event that the corporation imposes charges based on kilo-
    9  watt demand on customers who are  in  the  same  service  class  as  the
   10  customer-generator  but  which  do not generate electricity on site, the
   11  corporation may impose the same charges at the same rates to the custom-
   12  er-generator, provided, however,  that  the  kilowatt  demand  for  such
   13  demand  charges  is  determined  by the maximum measured kilowatt demand
   14  actually supplied by the corporation to  the  customer-generator  during
   15  the billing period.
   16    (E)  NET  ENERGY  METERING  SHALL BE ACCOMPLISHED USING A SINGLE METER
   17  CAPABLE OF REGISTERING THE FLOW OF ELECTRICITY  IN  TWO  DIRECTIONS.  AN
   18  ADDITIONAL  METER  OR  METERS TO MONITOR THE FLOW OF ELECTRICITY IN EACH
   19  DIRECTION  MAY BE INSTALLED WITH THE CONSENT OF THE  CUSTOMER-GENERATOR,
   20  AT  THE EXPENSE OF THE ELECTRIC CORPORATION, AND THE ADDITIONAL METERING
   21  SHALL BE USED ONLY TO PROVIDE THE INFORMATION  NECESSARY  TO  ACCURATELY
   22  BILL  OR CREDIT THE CUSTOMER-GENERATOR PURSUANT TO PARAGRAPH (F) OF THIS
   23  SUBDIVISION, OR TO COLLECT SYSTEM PERFORMANCE INFORMATION ON THE  ELIGI-
   24  BLE  TECHNOLOGY  FOR RESEARCH PURPOSES. IF THE EXISTING ELECTRICAL METER
   25  OF AN ELIGIBLE CUSTOMER-GENERATOR IS NOT CAPABLE OF MEASURING  THE  FLOW
   26  OF  ELECTRICITY  IN  TWO DIRECTIONS AND PROVIDED THE REASON THE METER IS
   27  NOT CAPABLE OF MEASURING THE FLOW  IN  TWO  DIRECTIONS  IS  NOT  RELATED
   28  EITHER  TO  A  MECHANICAL DEVICE INSTALLED BY AN ELECTRIC CORPORATION OR
   29  SUCH CORPORATION'S SELECTION OF A METER  WITHOUT  THIS  CAPABILITY  WHEN
   30  OTHER  METERS  CAPABLE  OF  MEASURING  THE  FLOW  OF  ELECTRICITY IN TWO
   31  DIRECTIONS WERE AVAILABLE TO THE ELECTRIC CORPORATION, THE CUSTOMER-GEN-
   32  ERATOR SHALL BE RESPONSIBLE FOR ALL EXPENSES INVOLVED IN PURCHASING  AND
   33  INSTALLING  A  METER  THAT IS ABLE TO MEASURE THE FLOW OF ELECTRICITY IN
   34  TWO DIRECTIONS.  IF AN ADDITIONAL METER OR METERS ARE INSTALLED, THE NET
   35  ENERGY METERING CALCULATION SHALL YIELD A RESULT IDENTICAL TO THAT OF  A
   36  SINGLE METER.
   37    (F)  EVERY  ELECTRIC  CORPORATION SHALL DEVELOP A STANDARD CONTRACT OR
   38  TARIFF PROVIDING FOR NET ENERGY METERING, AND SHALL MAKE  THIS  CONTRACT
   39  AVAILABLE  TO ELIGIBLE CUSTOMER-GENERATORS, UPON REQUEST. EVERY ELECTRIC
   40  CORPORATION SHALL ENSURE THAT REQUESTS FOR ESTABLISHMENT OF  NET  ENERGY
   41  METERING ARE PROCESSED IN A TIME PERIOD NOT EXCEEDING THAT FOR SIMILARLY
   42  SITUATED  CUSTOMERS  REQUESTING  NEW ELECTRIC SERVICE, BUT NOT TO EXCEED
   43  ONE MONTH FROM THE DATE THE ELECTRIC CORPORATION  RECEIVES  A  COMPLETED
   44  APPLICATION  FORM  FROM  AN  ELIGIBLE CUSTOMER-GENERATOR. IF AN ELECTRIC
   45  CORPORATION IS UNABLE TO PROCESS THE REQUEST WITHIN THE ALLOWABLE  TIME-
   46  FRAME,  THE  ELECTRIC CORPORATION SHALL NOTIFY THE CUSTOMER-GENERATOR OF
   47  THE REASON FOR ITS INABILITY TO PROCESS THE REQUEST  AND  THE  DATE  THE
   48  REQUEST  WILL  BE  COMPLETED.  EVERY ELECTRIC CORPORATION SHALL MAKE ALL
   49  NECESSARY FORMS AND CONTRACTS FOR  NET  ENERGY  METERING  AVAILABLE  FOR
   50  DOWNLOAD FROM THE INTERNET.
   51    (G)  EACH  NET  ENERGY METERING CONTRACT OR TARIFF SHALL BE IDENTICAL,
   52  WITH RESPECT TO RATE STRUCTURE,  ALL  RETAIL  RATE  COMPONENTS  AND  ANY
   53  MONTHLY  CHARGES,  TO  THE CONTRACT OR TARIFF TO WHICH THE SAME CUSTOMER
   54  WOULD BE ASSIGNED IF SUCH CUSTOMER WAS NOT AN ELIGIBLE  CUSTOMER-GENERA-
   55  TOR,  EXCEPT  THAT  ELIGIBLE  CUSTOMER-GENERATORS  SHALL NOT BE ASSESSED
   56  STANDBY  CHARGES  ON  THE  ELECTRICAL   GENERATING   CAPACITY   OR   THE
       A. 5553                             6
    1  KILOWATT-HOUR  PRODUCTION OF AN ELIGIBLE TECHNOLOGY. THE CHARGES FOR ALL
    2  RETAIL RATE COMPONENTS FOR ELIGIBLE CUSTOMER-GENERATORS SHALL  BE  BASED
    3  EXCLUSIVELY  ON  THE  CUSTOMER-GENERATOR'S NET KILOWATT-HOUR CONSUMPTION
    4  OVER  A  TWELVE MONTH PERIOD, WITHOUT REGARD TO THE CUSTOMER-GENERATOR'S
    5  CHOICE OF ELECTRIC CORPORATION. ANY NEW  OR  ADDITIONAL  DEMAND  CHARGE,
    6  STANDBY CHARGE, CUSTOMER CHARGE, MINIMUM MONTHLY CHARGE, INTERCONNECTION
    7  CHARGE    OR    OTHER   CHARGE   THAT   WOULD   INCREASE   AN   ELIGIBLE
    8  CUSTOMER-GENERATOR'S COSTS BEYOND THOSE OF OTHER CUSTOMERS IN  THE  RATE
    9  CLASS  TO  WHICH  THE  ELIGIBLE  CUSTOMER-GENERATOR  WOULD  OTHERWISE BE
   10  ASSIGNED ARE CONTRARY TO THE INTENT OF THIS SECTION, AND SHALL NOT  FORM
   11  A PART OF NET ENERGY METERING CONTRACTS OR TARIFFS.
   12    (H)  FOR ALL ELIGIBLE CUSTOMER-GENERATORS TAKING SERVICE UNDER TARIFFS
   13  EMPLOYING "TIME OF USE" RATES, ANY NET MONTHLY CONSUMPTION OF  ELECTRIC-
   14  ITY SHALL BE CALCULATED ACCORDING TO THE TERMS OF THE CONTRACT OR TARIFF
   15  TO  WHICH  THE  SAME CUSTOMER WOULD BE ASSIGNED TO OR BE ELIGIBLE FOR IF
   16  THE CUSTOMER WAS NOT AN ELIGIBLE  CUSTOMER-GENERATOR.  WHEN  THOSE  SAME
   17  CUSTOMER-GENERATORS  ARE  NET GENERATORS DURING ANY DISCRETE TIME OF USE
   18  PERIOD, THE NET KILOWATT-HOURS PRODUCED SHALL  BE  VALUED  AT  THE  SAME
   19  PRICE  PER  KILOWATT-HOUR  AS  THE ELECTRIC CORPORATION WOULD CHARGE FOR
   20  RETAIL KILOWATT-HOUR SALES DURING THAT SAME TIME OF USE PERIOD AND  THAT
   21  VALUE  SHALL  BE  APPLIED AS A CREDIT TO ANY OF THE DISCRETE TIME OF USE
   22  PERIODS UNDER THE TARIFF. IF THE ELIGIBLE CUSTOMER-GENERATOR'S  TIME  OF
   23  USE ELECTRICAL METER IS UNABLE TO MEASURE THE FLOW OF ELECTRICITY IN TWO
   24  DIRECTIONS,  THE  PROVISIONS  OF PARAGRAPH (D) OF THIS SUBDIVISION SHALL
   25  APPLY.
   26    5. Safety standards. (a) On or before three months after the effective
   27  date of [this section, each electric corporation shall establish  stand-
   28  ards  that are necessary for net energy metering and the interconnection
   29  of residential  solar  or  farm  waste  electric  generating  equipment,
   30  micro-combined  heat  and power generating equipment and fuel cell elec-
   31  tric generating equipment to its system and that  the  commission  shall
   32  determine  are  necessary  for safe and adequate service and further the
   33  public policy set forth in this section. Such standards may include  but
   34  shall not be limited to:
   35    (i)  equipment  necessary  to  isolate  automatically  the residential
   36  solar, farm waste, micro-combined heat and power and fuel cell  electric
   37  generating  system  from  the  utility  system for voltage and frequency
   38  deviations; and
   39    (ii) a manual lockable disconnect switch provided by the customer-gen-
   40  erator which shall be located on the outside of the customer's  premises
   41  and  externally  accessible for the purpose of isolating the residential
   42  solar and farm waste electric generating equipment.
   43    (b) Upon its own motion or upon a complaint, the  commission,  or  its
   44  designated  representative,  may investigate and make a determination as
   45  to the reasonableness and necessity of the standards  or  responsibility
   46  for compliance with the standards.
   47    (i)  In  the  case  of a customer-generator who owns or operates solar
   48  electric generating equipment located and used at his or her  residence;
   49  an  electric  corporation may not require a customer-generator to comply
   50  with additional safety or performance  standards,  perform  or  pay  for
   51  additional  tests,  or  purchase additional liability insurance provided
   52  that the residential solar or farm waste electric generating  equipment,
   53  micro-combined heat and power generating equipment or fuel cell electric
   54  generating  equipment meets the safety standards established pursuant to
   55  this paragraph.
       A. 5553                             7
    1    (ii) In the case of a customer-generator who  owns  or  operates  farm
    2  waste electric generating equipment located and used at his or her "farm
    3  operation," an electric corporation may not require a customer-generator
    4  to  comply  with  additional safety or performance standards, perform or
    5  pay  for  additional  tests,  or purchase additional liability insurance
    6  provided that:
    7    1. the electric generating equipment meets the safety standards estab-
    8  lished pursuant to this paragraph; and
    9    2. the total rated generating capacity (measured in kW) of farm  waste
   10  electric  generating equipment that provides electricity to the electric
   11  corporation through the same local feeder line, does not  exceed  twenty
   12  percent of the rated capacity of that local feeder line.
   13    (iii)  In  the  event that the total rated generating capacity of farm
   14  waste electric generating equipment that  provides  electricity  to  the
   15  electric  corporation  through the same local feeder line exceeds twenty
   16  percent of the rated capacity of the local  feeder  line,  the  electric
   17  corporation may require the customer-generator to comply with reasonable
   18  measures  to  ensure safety of that local feeder line.] PARAGRAPH (B) OF
   19  THIS SUBDIVISION, THE COMMISSION SHALL ESTABLISH STANDARDS FOR INTERCON-
   20  NECTION OF GENERATORS, TAKING INTO ACCOUNT APPLICABLE INDUSTRY STANDARDS
   21  INCLUDING IEEE 1541, AND  BEST  PRACTICES  INCLUDED  IN  THE  INTERSTATE
   22  RENEWABLE  ENERGY  COUNCIL'S  MODEL INTERCONNECTION RULES MR-12005. SUCH
   23  STANDARDS SHALL NOT BE MORE RESTRICTIVE OF INTERCONNECTION  THAN  STAND-
   24  ARDS  ESTABLISHED IN FERC ORDERS 2006 AND 2006A AS OF THE EFFECTIVE DATE
   25  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    S 2. Section 66-l of the public service law is REPEALED.
   34    S 3. Subdivision (h) of section 1020-g of the public authorities  law,
   35  as  amended  by  chapter  355 of the laws of 2009, is amended to read as
   36  follows:
   37    (h) To implement programs and policies designed  to  provide  for  the
   38  interconnection of: (i) [(A)] solar, WIND, FUEL CELL OR FARM WASTE elec-
   39  tric  generating  equipment owned or operated by [residential customers,
   40  (B) farm waste  electric  generating  equipment  owned  or  operated  by
   41  customer-generators,  (C)  solar  electric generating equipment owned or
   42  operated by non-residential customers,  (D)]  CUSTOMER-GENERATORS,  (II)
   43  micro-combined  heat  and  power  generating  equipment owned, leased or
   44  operated by residential customers, and [(E)] (III)  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    S 4. This act shall take effect immediately.
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