N.Y. PBS Law § 66-J — New York Code / Act PBS / Article 4 / Section 66-J
Net energy metering for residential solar, farm waste, non-residential solar electric generating systems, micro-combined heat and power g...
Status: in_force

§ 66-j. Net energy metering for residential solar, farm waste,\nnon-residential solar electric generating systems, micro-combined heat\nand power generating equipment, fuel cell electric generating equipment,\nfuel-flexible linear generator electric generating equipment, and\nmicro-hydroelectric generating equipment. 1. Definitions. As used in\nthis section, the following terms shall have the following meanings:\n  (a) "Customer-generator" means: (i) a residential customer of an\nelectric corporation, who owns or operates solar electric generating\nequipment located and used at his or her residence; (ii) a customer of\nan electric corporation, who owns or operates farm waste electric\ngenerating equipment located and used at his or her "farm operation," as\nsuch term is defined in subdivision eleven of section three hundred one\nof the agriculture and markets law; (iii) a non-residential customer of\nan electric corporation which owns or operates solar electric generating\nequipment located and used at its premises; (iv) a residential customer\nof an electric corporation who owns, leases or operates micro-combined\nheat and power generating equipment located on the customer's premises;\n(v) a residential customer of an electric corporation who owns, leases\nor operates fuel cell generating equipment or fuel-flexible linear\ngenerator electric generating equipment located on the customer's\npremises; and (vi) a non-residential customer of an electric corporation\nwho owns, leases or operates fuel cell generating equipment or\nfuel-flexible linear generator electric generating equipment located and\nused at the customer's premises; (vii) a residential customer of an\nelectric corporation, who owns or operates micro-hydroelectric\ngenerating equipment located and used at his or her residence; (viii) a\nnon-residential customer of an electric corporation which owns or\noperates micro-hydroelectric generating equipment located and used at\nits premises; and (ix) a non-residential customer of an electric\ncorporation which owns or operates farm waste electric generating\nequipment located and used at its premises.\n  (b) "Net energy meter" means a meter that measures the reverse flow of\nelectricity to register the difference between the electricity supplied\nby an electric corporation to the customer-generator and the electricity\nprovided to the corporation by that customer-generator.\n  (c) "Net energy metering" means the use of a net energy meter to\nmeasure, during the billing period applicable to a customer-generator,\nthe net amount of electricity supplied by an electric corporation and\nprovided to the corporation by a customer-generator.\n  (d) "Solar electric generating equipment" means a photovoltaic system\n(i) (A) in the case of a residential customer (other than a farm\nutilizing a residential meter), with a rated capacity of not more than\ntwenty-five kilowatts; (B) in the case of a customer who owns or\noperates a farm operation as such term is defined in subdivision eleven\nof section three hundred one of the agriculture and markets law\nutilizing a residential meter with a rated capacity of not more than one\nhundred kilowatts; and (C) in the case of a non-residential customer,\nwith a rated capacity of not more than two thousand kilowatts; and (ii)\nthat is manufactured, installed, and operated in accordance with\napplicable government and industry standards, that is connected to the\nelectric system and operated in conjunction with an electric\ncorporation's transmission and distribution facilities, and that is\noperated in compliance with any standards and requirements established\nunder this section.\n  (e) "Farm waste electric generating equipment" means equipment that\ngenerates electric energy from biogas produced by the anaerobic\ndigestion of agricultural waste, such as livestock manure, farming\nwastes and food processing wastes with a rated capacity of not more than\ntwo thousand kilowatts, that is:\n  (i) manufactured, installed, and operated in accordance with\napplicable government and industry standards;\n  (ii) connected to the electric system and operated in conjunction with\nan electric corporation's transmission and distribution facilities;\n  (iii) operated in compliance with any standards and requirements\nestablished under this section;\n  (iv) fueled at a minimum of ninety percent on an annual basis by\nbiogas produced from the anaerobic digestion of agricultural waste such\nas livestock manure materials, crop residues, and food processing waste;\nand\n  (v) fueled by biogas generated by anaerobic digestion with at least\nfifty percent by weight of its feedstock being livestock manure\nmaterials on an annual basis.\n  (f) "Micro-combined heat and power generating equipment" means an\nintegrated, cogenerating building heating and electrical power\ngeneration system, operating on any fuel and of any applicable engine,\nfuel cell, fuel-flexible linear generator, or other technology, with a\nrated capacity of at least one kilowatt and not more than ten kilowatts\nelectric and any thermal output that at full load has a design total\nfuel use efficiency in the production of heat and electricity of not\nless than eighty percent, and annually produces at least two thousand\nkilowatt hours of useful energy in the form of electricity that may work\nin combination with supplemental or parallel conventional heating\nsystems, that is manufactured, installed and operated in accordance with\napplicable government and industry standards, that is connected to the\nelectric system and operated in conjunction with an electric\ncorporation's transmission and distribution facilities.\n  (g) "Fuel cell electric generating equipment" means:\n  (i)(A) in the case of a residential customer, a solid oxide, molten\ncarbonate, proton exchange membrane or phosphoric acid fuel cell with a\ncombined rated capacity of not more than ten kilowatts; and (B) in the\ncase of a non-residential customer, a solid oxide, molten carbonate,\nproton exchange membrane or phosphoric acid fuel cell with a combined\nrated capacity of not more than two thousand kilowatts; and\n  (ii) that is manufactured, installed and operated in accordance with\napplicable government and industry standards, that is connected to the\nelectric system and operated in parallel with an electric corporation's\ntransmission and distribution facilities, and that is operated in\ncompliance with any standards and requirements established under this\nsection.\n  (h) "Micro-hydroelectric generating equipment" means a hydroelectric\nsystem (i) (A) in the case of a residential customer, with a rated\ncapacity of not more than twenty-five kilowatts; and (B) in the case of\na non-residential customer, with a rated capacity of not more than two\nthousand kilowatts; and (ii) that is manufactured, installed, and\noperated in accordance with applicable government and industry\nstandards, that is connected to the electric system and operated in\nconjunction with an electric corporation's transmission and distribution\nfacilities, and that is operated in compliance with any standards and\nrequirements established under this section.\n  (i) "Fuel-flexible linear generator electric generating equipment" or\n"fuel-flexible linear generator" means an integrated system consisting\nof oscillators, cylinders, electricity conversion equipment and\nassociated balance of plant components that directly convert the linear\nmotion of the oscillators into electricity and which has a combined\nrated capacity of not more than two thousand kilowatts.\n  (j) "Flexible interconnection" means the use of smart-grid technology\nto monitor and actively manage distributed energy resources.\n  2. Interconnection and net energy metering. An electric corporation\nshall provide for the interconnection of solar and farm waste electric\ngenerating equipment, micro-combined heat and power generating\nequipment, fuel cell electric generating equipment, fuel-flexible linear\ngenerator electric generating equipment and micro-hydroelectric\ngenerating equipment owned or operated by a customer-generator and for\nnet energy metering, provided that the customer-generator enters into a\nnet energy metering contract with the corporation or complies with the\ncorporation's net energy metering schedule and complies with standards\nand requirements established under this section.\n  2-a. Flexible interconnection. (a) The commission shall direct\nelectric corporations to develop proposals for a flexible\ninterconnection program to be established in the state. Such proposals\nshall demonstrate how to implement flexible interconnection without\nincreasing costs to ratepayers of distributed renewable energy resources\nor increasing the cost of maintaining and operating the distribution\nsystem. The commission shall solicit public comments on the electric\ncorporation proposals.\n  (b) Upon review of the proposals and comments received, if the\ncommission determines there is a viable proposal that would not\nmeaningfully increase costs to ratepayers or the cost of maintaining and\noperating the distribution system, the commission shall commence a\nproceeding to develop such a proposal and establish guidelines and\ntimelines for the implementation of flexible interconnection procedures.\n  3. Conditions of service. (a) (i) On or before three months after the\neffective date of this section, each electric corporation shall develop\na model contract and file a schedule that establishes consistent and\nreasonable rates, terms and conditions for net energy metering to\ncustomer-generators, according to the requirements of this section. The\ncommission shall render a decision within three months from the date on\nwhich the schedule is filed.\n  (ii) On or before three months after the effective date of this\nsubparagraph, each electric corporation shall develop a model contract\nand file a schedule that establishes consistent and reasonable rates,\nterms and conditions for net energy metering to non-residential customer\ngenerators, according to the requirements of this section. The\ncommission shall render a decision within three months of the date on\nwhich the schedule is filed.\n  (iii) Each electric corporation shall make such contract and schedule\navailable to customer-generators on a first come, first served basis,\nuntil the total rated generating capacity for solar and farm waste\nelectric generating equipment, micro-combined heat and power generating\nequipment, fuel cell electric generating equipment, fuel-flexible linear\ngenerator electric generating equipment and micro-hydroelectric\ngenerating equipment owned, leased or operated by customer-generators in\nthe corporation's service area is equivalent to one percent of the\ncorporation's electric demand for the year two thousand five, as\ndetermined by the department.\n  (b) Nothing in this subdivision shall prohibit a corporation from\nproviding net energy metering to additional customer-generators. The\ncommission shall have the authority, after January first, two thousand\ntwelve, to increase the percent limits if it determines that additional\nnet energy metering is in the public interest.\n  (c) In the event that the electric corporation determines that it is\nnecessary to install a dedicated transformer or transformers, or other\nequipment to protect the safety and adequacy of electric service\nprovided to other customers, a customer-generator shall pay the electric\ncorporation's actual costs of installing the transformer or\ntransformers, or other equipment:\n  (i) In the case of a customer-generator who owns or operates solar\nelectric generating equipment, micro-combined heat and power generating\nequipment, fuel cell electric generating equipment, fuel-flexible linear\ngenerator electric generating equipment or micro-hydroelectric\ngenerating equipment located and used at his or her residence, or a\nnon-residential customer-generator who owns or operates solar electric\ngenerating equipment with a rated capacity of not more than twenty-five\nkilowatts, up to a maximum amount of three hundred fifty dollars;\n  (ii) In the case of a customer-generator who owns or operates farm\nwaste electric generating equipment located and used at his or her "farm\noperation," up to a total amount of five thousand dollars per "farm\noperation"; and\n  (iii) In the case of a non-residential customer-generator who owns or\noperates solar electric generating equipment or fuel cell electric\ngenerating equipment or fuel-flexible linear generator electric\ngenerating equipment or micro-hydroelectric generating equipment or farm\nwaste generating equipment as described in subparagraph (ix) of\nparagraph (a) of subdivision one of this section, with a rated capacity\nof more than twenty-five kilowatts located and used at its premises,\nsuch cost shall be as determined by the electric corporation subject to\nreview, upon the request of such customer-generator, by the department.\n  (d) An electric corporation shall impose no other charge or fee,\nincluding back-up, stand by and demand charges, for the provision of net\nenergy metering to a customer-generator, except as provided in paragraph\n(d) of subdivision four of this section.\n  (e) A customer who owns or operates a farm operation as such term is\ndefined in subdivision eleven of section three hundred one of the\nagriculture and markets law, or a non-residential customer-generator as\ndefined by subparagraph (iii) of paragraph (a) of subdivision one of\nthis section that locates solar electric generating equipment or farm\nwaste electric generating equipment with a net energy meter on property\nowned or leased by such customer-generator may designate all or a\nportion of the net metering credits generated by such equipment to\nmeters at any property owned or leased by such customer-generator within\nthe service territory of the same electric corporation to which the\ncustomer-generator's net energy meters are interconnected and being\nwithin the same load zone as determined by the location based marginal\nprice as of the date of initial request by the customer-generator to\nconduct net metering. The electric corporation will credit the accounts\nof the customer by applying any credits to the highest use meter first,\nthen subsequent highest use meters until all such credits are attributed\nto the customer. Any excess credits shall be carried over to the\nfollowing month.\n  (f) A customer who owns or operates a farm operation as such term is\ndefined in subdivision eleven of section three hundred one of the\nagriculture and markets law, or a non-residential customer-generator as\ndefined by subparagraph (viii) of paragraph (a) of subdivision one of\nthis section that locates micro-hydroelectric generating equipment with\na net energy meter on property owned or leased by such\ncustomer-generator may designate all or a portion of the net metering\ncredits generated by such equipment to meters at any property owned or\nleased by such customer-generator within the service territory of the\nsame electric corporation to which the customer-generator's net energy\nmeters are interconnected and being within the same load zone as\ndetermined by the location based marginal price as of the date of\ninitial request by the customer-generator to conduct net metering. The\nelectric corporation will credit the accounts of the customer by\napplying any credits to the highest use meter first, then subsequent\nhighest use meters until all such credits are attributed to the\ncustomer. Any excess credits shall be carried over to the following\nmonth.\n  (g) A customer who owns or operates a farm operation as such term is\ndefined in subdivision eleven of section three hundred one of the\nagriculture and markets law, or a non-residential customer-generator as\ndefined by subparagraph (viii) of paragraph (a) of subdivision one of\nthis section that locates fuel cell electric generating equipment or\nfuel-flexible linear generator electric generating equipment with a net\nenergy meter on property owned or leased by such customer-generator may\ndesignate all or a portion of the net metering credits generated by such\nequipment to meters at any property owned or leased by such\ncustomer-generator within the service territory of the same electric\ncorporation to which the customer-generator's net energy meters are\ninterconnected and being within the same load zone as determined by the\nlocation based marginal price as of the date of initial request by the\ncustomer-generator to conduct net metering. The electric corporation\nwill credit the accounts of the customer by applying any credits to the\nhighest use meter first, then subsequent highest use meters until all\nsuch credits are attributed to the customer. Any excess credits shall be\ncarried over to the following month.\n  (h) A non-residential customer-generator as defined by subparagraph\n(ix) of paragraph (a) of subdivision one of this section that locates\nfarm waste generating equipment with a net meter on property owned or\nleased by such customer-generator may designate all or a portion of the\nnet metering credits generated by such equipment to meters at any\nproperty owned or leased by such customer-generator within the service\nterritory of the same electric corporation to which the\ncustomer-generator's net energy meters are interconnected and being\nwithin the same load zone as determined by the location based marginal\nprice as of the date of initial request by the customer-generator to\nconduct net metering. The electric corporation will credit the accounts\nof the customer by applying any credits to the highest use meter first,\nthen subsequent highest use meters until all such credits are attributed\nto the customer. Any excess credits shall be carried over to the\nfollowing month.\n  4. Rates. An electric corporation shall use net energy metering to\nmeasure and charge for the net electricity supplied by the corporation\nand provided to the corporation by a customer-generator, according to\nthese requirements:\n  (a) In the event that the amount of electricity supplied by the\ncorporation during the billing period exceeds the amount of electricity\nprovided by a customer-generator, the corporation shall charge the\ncustomer-generator for the net electricity supplied at the same rate per\nkilowatt hour applicable to service provided to other customers in the\nsame service class which do not generate electricity onsite.\n  (b) In the event that the amount of electricity produced by a\ncustomer-generator during the billing period exceeds the amount of\nelectricity used by the customer-generator, the corporation shall apply\na credit to the next bill for service to the customer-generator for the\nnet electricity provided at the same rate per kilowatt hour applicable\nto service provided to other customers in the same service class which\ndo not generate electricity onsite, except for micro-combined heat and\npower or fuel cell or fuel-flexible linear generator customer-generators\nor farm waste generating equipment customer-generators as described in\nsubparagraph (ix) of paragraph (a) of subdivision one of this section,\nwho will be credited at the corporation's avoided costs. The avoided\ncost credit provided to micro-combined heat and power or fuel cell or\nfuel-flexible linear generator customer-generators or farm waste\ngenerating equipment customer-generators as described in subparagraph\n(ix) of paragraph (a) of subdivision one of this section shall be\ntreated for ratemaking purposes as a purchase of electricity in the\nmarket that is includable in commodity costs.\n  (c) At the end of the year or annualized over the period that service\nis supplied by means of net energy metering, the corporation shall\npromptly issue payment at its avoided cost to the customer-generator, as\ndefined in subparagraph (i), (ii) or (ix) of paragraph (a) of\nsubdivision one of this section, for the value of any remaining credit\nfor the excess electricity produced during the year or over the\nannualized period by the customer-generator.\n  (d) In the event that the corporation imposes charges based on\nkilowatt demand on customers who are in the same service class as the\ncustomer-generator but which do not generate electricity on site, the\ncorporation may impose the same charges at the same rates to the\ncustomer-generator, provided, however, that the kilowatt demand for such\ndemand charges is determined by the maximum measured kilowatt demand\nactually supplied by the corporation to the customer-generator during\nthe billing period.\n  5. Safety standards. (a) On or before three months after the effective\ndate of this section, each electric corporation shall establish\nstandards that are necessary for net energy metering and the\ninterconnection of residential solar or farm waste electric generating\nequipment, micro-combined heat and power generating equipment and fuel\ncell electric generating equipment, fuel-flexible linear generator\nelectric generating equipment and micro-hydroelectric generating\nequipment to its system and that the commission shall determine are\nnecessary for safe and adequate service and further the public policy\nset forth in this section. Such standards may include but shall not be\nlimited to:\n  (i) equipment necessary to isolate automatically the residential\nsolar, farm waste, micro-combined heat and power and fuel cell electric\ngenerating system and fuel-flexible linear generator electric generating\nequipment and micro-hydroelectric generating equipment from the utility\nsystem for voltage and frequency deviations; and\n  (ii) a manual lockable disconnect switch provided by the\ncustomer-generator which shall be located on the outside of the\ncustomer's premises and externally accessible for the purpose of\nisolating the residential solar and farm waste electric generating\nequipment and micro-hydroelectric generating equipment.\n  (b) Upon its own motion or upon a complaint, the commission, or its\ndesignated representative, may investigate and make a determination as\nto the reasonableness and necessity of the standards or responsibility\nfor compliance with the standards.\n  (i) In the case of a customer-generator who owns or operates solar\nelectric generating equipment located and used at his or her residence;\nan electric corporation may not require a customer-generator to comply\nwith additional safety or performance standards, perform or pay for\nadditional tests, or purchase additional liability insurance provided\nthat the residential solar or farm waste electric generating equipment,\nmicro-combined heat and power generating equipment, fuel cell electric\ngenerating equipment, fuel-flexible linear generator electric generating\nequipment or micro-hydroelectric generating equipment meets the safety\nstandards established pursuant to this paragraph.\n  (ii) In the case of a customer-generator who owns or operates farm\nwaste electric generating equipment located and used at his or her "farm\noperation," an electric corporation may not require a customer-generator\nto comply with additional safety or performance standards, perform or\npay for additional tests, or purchase additional liability insurance\nprovided that:\n  1. the electric generating equipment meets the safety standards\nestablished pursuant to this paragraph; and\n  2. the total rated generating capacity (measured in kW) of farm waste\nelectric generating equipment that provides electricity to the electric\ncorporation through the same local feeder line, does not exceed twenty\npercent of the rated capacity of that local feeder line.\n  (iii) In the event that the total rated generating capacity of farm\nwaste electric generating equipment that provides electricity to the\nelectric corporation through the same local feeder line exceeds twenty\npercent of the rated capacity of the local feeder line, the electric\ncorporation may require the customer-generator to comply with reasonable\nmeasures to ensure safety of that local feeder line.\n  5-a. Safety standards; non-residential solar electric generating\nequipment and micro-hydroelectric generating equipment. (a) On or before\nthree months after the effective date of this subdivision, each electric\ncorporation shall establish standards that are necessary for net energy\nmetering and the interconnection of non-residential solar electric\ngenerating equipment or micro-hydroelectric generating equipment to its\nsystem and that the commission shall determine are necessary for safe\nand adequate service and further the public policy set forth in this\nsection. Such standards may include but shall not be limited to:\n  (i) equipment necessary to isolate automatically the solar generating\nsystem or micro-hydroelectric generating equipment from the utility\nsystem for voltage and frequency deviations; and\n  (ii) a manual lockable disconnect switch provided by the\ncustomer-generator which shall be located on the outside of the\ncustomer-generator's premises and externally accessible for the purpose\nof isolating the solar electric generating equipment or\nmicro-hydroelectric generating equipment.\n  (b) In the event that the total rated generating capacity of solar\nelectric generating equipment or micro-hydroelectric generating\nequipment that provides electricity to the electric corporation through\nthe same local feeder line exceeds twenty percent of the rated capacity\nof the local feeder line, the electric corporation may require the\ncustomer-generator to comply with reasonable measures to ensure safety\nof the local feeder line.\n  (c) Unless otherwise determined to be necessary by the commission, an\nelectric corporation may not require a customer-generator to comply with\nadditional safety or performance standards, perform or pay for\nadditional tests, or purchase additional liability insurance provided\nthat the solar electric generating equipment or micro-hydroelectric\ngenerating equipment meets the safety standards established pursuant to\nthis subdivision.\n  (d) Upon its own motion or upon a complaint, the commission, or its\ndesignated representative, may investigate and make a determination as\nto the reasonableness and necessity of the standards or responsibility\nfor compliance with the standards.\n  6. Electric restructuring. Notwithstanding the provisions of this\nsection, including, but not limited to paragraph (b) of subdivision\nthree of this section, a customer-generator shall comply with any\napplicable determinations of the commission relating to restructuring of\nthe electric industry.\n  6-a. Distributed energy resource capacity expansion. The commission\nshall consider opportunities for proactive distribution upgrades that\ncreate distributed energy resource hosting capacity as part of its\nenergy system planning. The commission shall take into account\naffordability, grid reliability, customer service goals, and costs.\n  7. Severability of provisions. The provisions of this section shall be\nseverable and if the application of any clause, sentence, paragraph,\nsubdivision, section, or part thereof to any person or circumstance\nshall be adjudged by any court of competent jurisdiction to be invalid,\nsuch judgment shall not necessarily affect, impair, or invalidate the\napplication of any such clause, sentence, paragraph, subdivision,\nsection, part or remainder thereof, as the case may be, to any other\nperson, circumstance, but shall be confined in its operation to the\nclause, sentence, paragraph, subdivision, section or part thereof\ndirectly involved in the controversy in which such judgment shall have\nbeen rendered.\n