Bill S7727-2013

Relates to shared renewable facilities

Relates to shared renewable energy facilities.

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  • Jun 3, 2014: REFERRED TO FINANCE

Memo

BILL NUMBER:S7727

TITLE OF BILL: An act to amend the executive law, the public service law and the public authorities law, in relation to shared renewable facilities

PURPOSE: Amends the Executive Law, Public Service Law (PSL) and Public Authorities Law (PAL) to allow for the interconnection and operation of shared solar and wind facilities,

SUMMARY OF PROVISIONS: Part One amends the Executive Law to authorize the Utility Intervention Unit within the Department of State to initiate, intervene or participate in proceedings before the Public Service Commission (PSC) and Department of Public Service (DPS) relating to section 66-n of the Public Service Law (Shared Renewable Energy Facilities).

Section Two creates a new § 2-e of the PSL to define "shared renewable energy facility".

Section Three amends § 5 of the PSL to authorize the PSC to determine the compatibility, interconnection and operation of shared renewable energy facilities.

Section Four creates § 66-n of the PSL and provides definitions including "subscriber", "power subscriber agreement," "subscription roster," "subscriber company," "subscription," and "bill credit."

The shared renewable energy facility compatibility map would be developed on a county-by county basis and account for the potential need for additional electric generation, electric congestion on the high voltage transmission network and the potential for reduction of carbon dioxide, sulfur dioxide, nitrogen oxide and particulate matter 2.5.

Interconnection and operations standards established under the order would provide that a shared renewable energy facility would operate in the same service territory of the electric corporation and county or counties in which its subscribers are customers and within the same load zone as determined by the location based marginal price as of the date of the initial request by a subscriber company to interconnect a shared renewable energy facility. Additionally, subscriber companies would only be authorized to sell to subscribers and not sell or otherwise market the output of shared renewable energy facilities to third parties, electric corporations, cooperatives or bulk system operators.

Subscriber protection standards established pursuant to the order would establish clear and consistent charges, guarantee refunds for subscribers for any portion of the a customer's share that does not produce electricity, limit the term of a subscriber agreement to five years for residential customers and ten years for non-residential customers.

The legislation would require electric corporations to interconnect shared renewable energy facilities located in a compatibility and accommodation zone on a first come first served basis until the total

rated generating capacity attributable to such facilities is equivalent to one half of one percent of such company's electric demand for 2005. The bill would provide that no greater than 20 percent of shared renewable energy facilities could be constructed in Potential Environmental Justice Areas as determined by the Department of Environmental Conservation as depicted on May 5, 2014.

The legislation would direct electric corporations to credit customers who are subscribers for their pro-rata portion of electricity produced by a shared renewable energy facility at the same per kilowatt hour rate applicable to customers in the same service class who do not subscribe to a shared renewable facility.

The legislation would establish safety equipment and operations standards applicable to shared renewable energy facilities.

Section Four would amend § 1020-g of the PAL to direct the Long Island Power Authority (LIPA) to provide for the interconnection of shared renewable facilities consistent with the provisions of § 66-n of the PSL.

JUSTIFICATION: Currently, the vast majority of electricity customers, especially those in New York City and other urban communities, are unable to install renewable energy systems on their property due to various impediments, such as high-rise apartments that have one small roof for many inhabitants.

The shared renewable energy program created by this bill will provide the opportunity for electric customers, especially multi-dwellers, to invest in shared renewable energy facilities and see tangible economic benefits in their utility bill. Specifically, customers of an electric corporation would be able to receive credit against their usage for electricity produced by shared renewable energy facilities to which they subscribe.

Under this bill, the Public Service Commission would determine which areas of the electric grid would benefit from increased distributed generation and permit the interconnection of shared renewable energy facilities that meet standards pursuant to this act. This will ensure that projects are being located in areas that provide the most benefits to the state as a whole.

Additionally, a shared renewable energy program will unlock a new market and unleash massive new private investment in New York State. This bill will provide significant financial, health, environmental and workforce benefits to the state, and promote energy independence, security and grid resiliency.

PRIOR HISTORY: This is a new bill.

FISCAL IMPLICATIONS: Nominal costs to the Department of Public Service in instituting a proceeding to established shared renewable energy facility interconnection standards.

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 7727 IN SENATE June 3, 2014 ___________
Introduced by Sen. MAZIARZ -- read twice and ordered printed, and when printed to be committed to the Committee on Finance AN ACT to amend the executive law, the public service law and the public authorities law, in relation to shared renewable facilities THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subparagraph (i) of paragraph (b) of subdivision 4 of section 94-a of the executive law, as amended by section 12 of part A of chapter 173 of the laws of 2013, is amended to read as follows: (i) on behalf of the secretary, initiate, intervene in, or participate in any proceedings before the public service commission or the depart- ment of public service, to the extent authorized by sections three-b, twenty-four-a, SIXTY-SIX-N, seventy-one, eighty-four or ninety-six of the public service law or any other applicable provision of law, where he or she deems such initiation, intervention or participation to be necessary or appropriate; S 2. Section 2 of the public service law is amended by adding a new subdivision 2-e to read as follows: 2-E. THE TERM "SHARED RENEWABLE ENERGY FACILITY" WHEN USED IN THIS CHAPTER MEANS SOLAR ELECTRIC GENERATING EQUIPMENT AS SUCH TERM IS DEFINED IN SECTION SIXTY-SIX-J OF THIS CHAPTER; AND WIND ELECTRIC GENER- ATING EQUIPMENT AS SUCH TERM IS DEFINED IN SECTION SIXTY-SIX-L OF THIS CHAPTER. SUCH FACILITIES SHALL: (A) NOT EXCEED A NAMEPLATE CAPACITY OF GREATER THAN TWO MEGAWATTS, PROVIDED THAT FACILITIES LOCATED IN A POTEN- TIAL ENVIRONMENTAL JUSTICE AREA, AS DETERMINED BY THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION AS SUCH AREAS WERE DEPICTED ON MAY FIFTH, TWO THOUSAND FOURTEEN, SHALL NOT EXCEED A NAMEPLATE CAPACITY OF GREATER THAN ONE MEGAWATT; (B) BE LOCATED, CONSTRUCTED AND OPERATED, IN ACCORDANCE WITH ANY APPLICABLE LOCAL LAW, ORDINANCE OR REGULATION; (C) BE LOCATED IN A SHARED RENEWABLE ENERGY FACILITY COMPATIBILITY AND ACCOMMODATION ZONE AS PROVIDED FOR IN SUBDIVISION FOUR OF SECTION SIXTY-SIX-N OF THIS CHAPTER; (D) BE MANUFACTURED, INSTALLED AND OPERATED IN ACCORDANCE WITH APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS, CONNECTED TO THE ELECTRIC SYSTEM AND OPERATED IN CONJUNCTION WITH AN ELECTRIC CORPORATION'S TRANS-
MISSION AND DISTRIBUTION FACILITIES; AND (E) SHALL HAVE NO LESS THAN TEN SUBSCRIBERS. S 3. Subdivision 1 of section 5 of the public service law is amended by adding a new paragraph i to read as follows: I. TO THE DETERMINATION OF COMPATIBILITY, INTERCONNECTION AND OPERA- TION OF SHARED RENEWABLE ENERGY FACILITIES AS SUCH TERM IS DEFINED IN PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION SIXTY-SIX-N OF THIS CHAPTER. S 4. The public service law is amended by adding a new section 66-n to read as follows: S 66-N. SHARED RENEWABLE ENERGY FACILITIES. 1. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (A) "SUBSCRIBER" MEANS A RESIDENTIAL OR NON-RESIDENTIAL CUSTOMER OF AN ELECTRIC CORPORATION WHO HAS: (I) ENTERED INTO A POWER SUBSCRIBER AGREE- MENT WITH A SUBSCRIBER COMPANY; AND (II) IDENTIFIED ONE OR MORE METERS TO WHICH THE PRO-RATA SHARE OF THE ELECTRICAL OUTPUT OF A FACILITY SHALL BE ATTRIBUTED PURSUANT TO HIS OR HER POWER SUBSCRIBER AGREEMENT. SUCH METERS SHALL BE WITHIN EITHER THE SAME COUNTY AS THE SHARED RENEWABLE ENERGY FACILITY TO WHICH A SUBSCRIBER HAS ENTERED INTO A POWER SUBSCRIB- ER AGREEMENT, EXCEPT THAT IN THE CASE OF A SUBSCRIBER WHOSE METERS ARE LOCATED IN A COUNTY OF TWENTY THOUSAND OR LESS, ACCORDING TO THE MOST RECENT CENSUS, THE SUBSCRIBER MAY ENTER INTO A POWER SUBSCRIBER AGREE- MENT WITH A SUBSCRIBER COMPANY WHOSE SHARED RENEWABLE ENERGY FACILITY IS LOCATED IN AN ADJACENT COUNTY OF TWENTY THOUSAND OR LESS WITHIN THE SAME SERVICE TERRITORY OF THE ELECTRIC CORPORATION OF WHICH HE OR SHE IS A CUSTOMER, AND IS LOCATED WITHIN THE SAME LOAD ZONE AS DETERMINED BY THE LOCATION BASED MARGINAL PRICE AS OF THE DATE OF THE INITIAL REQUEST BY A SUBSCRIBER COMPANY TO INTERCONNECT A SHARED RENEWABLE ENERGY FACILITY. (B) "POWER SUBSCRIBER AGREEMENT" OR "SUBSCRIBER AGREEMENT" MEANS AN AGREEMENT BETWEEN A SUBSCRIBER AND A SUBSCRIBER COMPANY THAT MEETS STAN- DARDS PURSUANT TO PARAGRAPH (A) OF SUBDIVISION SIX OF THIS SECTION. SUCH AGREEMENT SHALL: (I) INCLUDE THE NAME, ADDRESS AND ELECTRIC CORPORATION ACCOUNT NUMBER TO WHICH THE SUBSCRIPTION SHALL BE ATTRIBUTED; (II) ENTI- TLE A SUBSCRIBER TO A PRO-RATA SHARE OF THE ACTUAL ELECTRICAL OUTPUT OF A SHARED RENEWABLE ENERGY FACILITY; AND (III) PROVIDE THAT A SUBSCRIB- ER'S PRO-RATA SHARE WILL BE REFLECTED AS A BILL CREDIT AGAINST THE SUBSCRIBER'S MONTHLY ELECTRIC USAGE AS METERED BY HIS OR HER ELECTRIC CORPORATION AND BILLED BY SUCH ELECTRIC CORPORATION ON A PER KILOWATT HOUR BASIS. (C) "SUBSCRIPTION ROSTER" MEANS THE COMPILATION OF INFORMATION FROM POWER SUBSCRIBER AGREEMENTS FOR A PARTICULAR SHARED RENEWABLE ENERGY FACILITY WHICH IS COLLECTED BY THE SUBSCRIBER COMPANY OWNING SUCH FACIL- ITY FOR THE PURPOSES OF DIRECTING AN ELECTRIC CORPORATION TO APPLY BILL CREDITS AGAINST SUBSCRIBERS' MONTHLY ELECTRIC USAGE AS METERED AND RECOVERED BY SUCH ELECTRIC CORPORATION THROUGH A MONTHLY BILL. (D) "SUBSCRIBER COMPANY" MEANS A GENERAL PARTNERSHIP, LIMITED PARTNER- SHIP, LIMITED LIABILITY COMPANY, COOPERATIVE, S-CORPORATION, C-CORPORA- TION OR NOT-FOR-PROFIT CORPORATION WHOSE PURPOSE IS TO OWN AND OPERATE A SHARED RENEWABLE ENERGY FACILITY. (E) "SUBSCRIPTION" MEANS THE RIGHTS AND RESPONSIBILITIES OF A SUBSCRIBER TO A PRO-RATA PORTION OF THE ACTUAL ELECTRICAL OUTPUT OF A SHARED RENEWABLE ENERGY FACILITY, AS SET FORTH IN A SUBSCRIBER AGREE- MENT. A SUBSCRIPTION SHALL: (I) AT A MINIMUM, REPRESENT AT LEAST ONE KILOWATT OF A SHARED RENEWABLE ENERGY FACILITY'S GENERATING CAPACITY; AND (II) NOT EXCEED ONE HUNDRED PERCENT OF A SUBSCRIBER'S ELECTRICAL CONSUMPTION AS MEASURED IN KILOWATT HOURS FROM THE TWELVE-MONTH PERIOD IMMEDIATELY PRECEDING THE ESTABLISHMENT OF A SUBSCRIBER AGREEMENT.
(F) "BILL CREDIT" MEANS A CREDIT MEASURED ON A PER KILOWATT HOUR BASIS AND APPLIED AGAINST A SUBSCRIBER'S NEXT MONTHLY BILL FOR SERVICE ISSUED BY HIS OR HER ELECTRIC CORPORATION BASED UPON THE PRO-RATA SHARE OF THE ELECTRICAL OUTPUT OF THE SHARED RENEWABLE ENERGY FACILITY TO WHICH THE CUSTOMER IS ENTITLED PURSUANT TO A SUBSCRIBER AGREEMENT. 2. NO LATER THAN JULY THIRTY-FIRST, TWO THOUSAND FIFTEEN, THE COMMIS- SION SHALL COMMENCE A PROCEEDING TO: (A) DEVELOP A STATEWIDE SHARED RENEWABLE ENERGY FACILITY COMPATIBILITY AND ACCOMMODATION ZONE MAP; (B) ESTABLISH CRITERIA FOR THE COMPATIBLE INTERCONNECTION AND OPERATION OF SHARED RENEWABLE ENERGY FACILITIES AND SUBSCRIBER PROTECTIONS; AND (C) DEVELOP SUBSCRIBER PROTECTION STANDARDS. 3. IN DEVELOPING THE ORDER PURSUANT TO SUBDIVISION TWO OF THIS SECTION, THE COMMISSION SHALL CONSULT WITH THE STATE DEPARTMENT OF ENVI- RONMENTAL CONSERVATION AND THE BULK SYSTEM OPERATOR SERVING NEW YORK STATE. THE COMMISSION SHALL ALSO SOLICIT PARTICIPATION AND PUBLIC COMMENT FROM STAKEHOLDER ORGANIZATIONS INCLUDING, BUT NOT LIMITED TO: (A) ORGANIZATIONS ADVOCATING FOR ENVIRONMENTAL CONCERNS; (B) ORGANIZATIONS REPRESENTING RENEWABLE ENERGY INDUSTRIES; (C) ELECTRIC CORPORATIONS; AND (D) THE LONG ISLAND POWER AUTHORITY. 4. THE COMMISSION MAP PURSUANT TO SUBDIVISION TWO OF THIS SECTION SHALL BE DEVELOPED ON A COUNTY-BY-COUNTY BASIS. THE COMMISSION SHALL DETERMINE WHICH COUNTIES, IF ANY, WOULD BENEFIT FROM THE INTERCON- NECTION, OPERATION AND ELECTRICAL OUTPUT OF SHARED RENEWABLE ENERGY FACILITIES, TAKING INTO CONSIDERATION FACTORS AFFECTING THE PRICE AND DELIVERABILITY OF ELECTRICITY IN EACH COUNTY. THE COMMISSION SHALL PUBLISH SUCH MAP AND ACCOMMODATE THE INTERCONNECTION OF SHARED RENEWABLE ENERGY FACILITIES WHICH MEET THE REQUIREMENTS OF THIS SECTION AND ANY RULES AND REGULATIONS OF THE COMMISSION PERTAINING THERETO NO LATER THAN JULY THIRTY-FIRST, TWO THOUSAND SIXTEEN. SUCH MAP SHALL BE UPDATED NO LATER THAN JULY THIRTY-FIRST OF EACH SUCCEEDING YEAR. IN DEVELOPING THE MAP PURSUANT TO THIS SUBDIVISION, THE COMMISSION SHALL CONSIDER ON A COUNTY-BY-COUNTY BASIS: (A) THE POTENTIAL NEED FOR ADDITIONAL ELECTRIC GENERATION AND/OR TRAN- SMISSION WITHIN THE PRECEDING TEN-YEAR PERIOD; (B) ELECTRIC CONGESTION ON THE HIGH VOLTAGE TRANSMISSION NETWORK WHICH HAS CREATED OR IS PROJECTED TO CREATE WITHIN TEN YEARS, A SYSTEM RELI- ABILITY PROBLEM, OR, AS DETERMINED BY THE COMMISSION, HAS CONTRIBUTED TO A SIGNIFICANT INCREASE IN THE WHOLESALE COST OF ELECTRICITY; AND (C) THE POTENTIAL FOR REDUCTION IN OVERALL EMISSIONS OF CARBON DIOX- IDE, SULFUR DIOXIDE, NITROGEN OXIDE AND PARTICULATE MATTER 2.5 (PM 2.5) THAT WOULD BE ATTRIBUTABLE TO THE OPERATION OF SHARED RENEWABLE ENERGY FACILITIES. 5. THE ORDER ESTABLISHED BY THE COMMISSION PURSUANT TO SUBDIVISION TWO OF THIS SECTION SHALL INCLUDE STANDARDS FOR THE INTERCONNECTION AND OPERATION OF SHARED RENEWABLE ENERGY FACILITIES, INCLUDING BUT NOT LIMITED TO REQUIREMENTS THAT: (A) SHARED RENEWABLE ENERGY FACILITIES SHALL BE DESIGNED TO ENSURE SAFE AND ADEQUATE OPERATION AND THAT ANY COSTS ASSOCIATED WITH EQUIPMENT AND TECHNOLOGY THE COMMISSION DEEMS NECESSARY FOR SUCH PURPOSE SHALL BE THE RESPONSIBILITY OF A SUBSCRIBER COMPANY; (B) SHARED RENEWABLE ENERGY FACILITIES ARE DESIGNED TO OPERATE (I) IN THE SAME SERVICE TERRITORY OF THE ELECTRIC CORPORATION AND COUNTY OR COUNTIES AS AUTHORIZED BY THE COMMISSION TO WHICH ITS SUBSCRIBERS ARE METERED FOR ELECTRICAL USAGE; AND (II) ARE LOCATED WITHIN THE SAME LOAD ZONE AS DETERMINED BY THE LOCATION BASED MARGINAL PRICE AS OF THE DATE
OF THE INITIAL REQUEST BY A SUBSCRIBER COMPANY TO INTERCONNECT A SHARED RENEWABLE ENERGY FACILITY; (C) A SHARED RENEWABLE ENERGY FACILITY'S ELECTRICAL OUTPUT WILL NOT RESULT IN ELECTRICAL CONGESTION OR CONTRIBUTE SIGNIFICANTLY TO ELECTRIC CONGESTION WITHIN THE SERVICE TERRITORY OF AN ELECTRIC CORPORATION; (D) A SUBSCRIBER COMPANY SHALL ONLY SELL TO SUBSCRIBERS AND SHALL NOT SELL OR OTHERWISE MARKET TO A THIRD-PARTY, ELECTRIC CORPORATION, PUBLIC POWER AUTHORITY, RURAL ELECTRIC CO-OPERATIVE, OR WHOLESALE BULK ELECTRIC SYSTEM OPERATOR, WHETHER OR NOT SUCH WHOLESALE BULK ELECTRIC SYSTEM OPERATOR IS LOCATED IN NEW YORK; AND (E) AN ELECTRIC CORPORATION SHALL NOT BE REQUIRED TO PURCHASE ENERGY PRODUCED BY A SHARED RENEWABLE ENERGY FACILITY BUT WHICH IS UNSUB- SCRIBED. 6. THE ORDER ESTABLISHED BY THE COMMISSION SHALL INCLUDE SUBSCRIBER PROTECTION STANDARDS TO BE INCLUDED IN THE POWER SUBSCRIBER AGREEMENT, WHICH SHALL: (A) (I) ESTABLISH CLEAR AND CONSISTENT CHARGES BASED ON A SUBSCRIBER'S PRO-RATA SHARE OF A SHARED RENEWABLE ENERGY FACILITY'S OUTPUT EXPRESSED AS MONTHLY CHARGES BASED ON PER KILOWATT HOUR PRODUCTION; (II) GUARANTEE REFUNDS FROM THE SUBSCRIBER COMPANY TO THE SUBSCRIBER FOR ANY PORTION OF SUCH SHARE THAT SUCH SHARED RENEWABLE ENERGY FACILITY DOES NOT ACTUALLY PRODUCE; AND (III) GUARANTEE REFUNDS FROM A SUBSCRIBER COMPANY FOR ANY PORTION OF A SUBSCRIBER'S SHARE THAT WAS NOT ACTUALLY CONSUMED BY THE SUBSCRIBER; (B) LIMIT THE TERM OF A POWER SUBSCRIBER AGREEMENT: (I) FOR SUBSCRIB- ERS WHO ARE RESIDENTIAL CUSTOMERS OF AN ELECTRIC CORPORATION, TO NO GREATER THAN FIVE YEARS; AND (II) FOR SUBSCRIBERS WHO ARE NON-RESIDEN- TIAL CUSTOMERS OF AN ELECTRIC CORPORATION, TO NO GREATER THAN TEN YEARS, PROVIDED THAT A SUBSCRIBER MAY RENEW HIS OR HER SUBSCRIPTION UPON ITS EXPIRATION FOR AN ADDITIONAL TERM; (C) REQUIRE THAT, IN THE CASE OF A SHARED RENEWABLE ENERGY FACILITY WHICH HAS NOT BEEN INTERCONNECTED UPON THE SIGNING OF A POWER SUBSCRIBER AGREEMENT, THE SUBSCRIBER COMPANY SHALL IMMEDIATELY NOTIFY EACH SUBSCRIBER UPON THE INTERCONNECTION OF SUCH SHARED RENEWABLE ENERGY FACILITY THAT HE OR SHE HAS FORTY-FIVE DAYS UPON THE RECEIPT OF THE NOTICE REQUIRED PURSUANT TO THIS PARAGRAPH TO CANCEL HIS OR HER SUBSCRIPTION WITH NO CANCELLATION OR OTHER CHARGES ASSESSED BY HIS OR HER SUBSCRIBER COMPANY, PROVIDED THAT IF A SHARED RENEWABLE ENERGY FACILITY IS NOT INTERCONNECTED WITHIN ONE YEAR OF THE COMPLETION OF A POWER SUBSCRIBER AGREEMENT, THE SUBSCRIBER AGREEMENT WILL BE NULL AND VOID; (D) REQUIRE THAT, IN THE CASE OF A SHARED RENEWABLE ENERGY FACILITY WHICH WAS INTERCONNECTED PRIOR TO THE SIGNING OF A POWER SUBSCRIBER AGREEMENT, THE SUBSCRIBER SHALL HAVE FORTY-FIVE DAYS UPON THE SIGNING OF A POWER SUBSCRIBER AGREEMENT TO CANCEL HIS OR HER SUBSCRIPTION WITH NO CANCELLATION OR OTHER CHARGES ASSESSED BY HIS OR HER SUBSCRIBER COMPANY; (E) PROHIBIT A SUBSCRIBER COMPANY FROM TRANSFERRING A SUBSCRIPTION FROM ONE SHARED RENEWABLE ENERGY FACILITY TO ANOTHER, REGARDLESS OF WHETHER THE SUBSCRIBER FACILITY TO WHICH A SUBSCRIBER AGREEMENT WOULD BE TRANSFERRED IS OWNED OR OPERATED BY THE SAME COMPANY, WITHOUT A SUBSCRIBER'S CONSENT; (F) ESTABLISH THAT ANY COMPLAINTS BY A SUBSCRIBER ABOUT HIS OR HER SUBSCRIPTION SHALL BE NOT BE THE RESPONSIBILITY OF THE ELECTRIC CORPO- RATION BUT INSTEAD SHALL BE THE RESPONSIBILITY OF THE SUBSCRIBER COMPA- NY;
(G) REQUIRE A SUBSCRIBER COMPANY SEEKING TO INTERCONNECT PURSUANT TO THIS SECTION TO ESTABLISH AND MAINTAIN A COMPLAINT HANDLING PROCESS; (H) PROHIBIT A SUBSCRIBER COMPANY FROM CHARGING DIFFERENTIAL SUBSCRIPTION FEES TO SUBSCRIBERS WHO ARE CUSTOMERS OF THE SAME CLASS OF ELECTRIC SERVICE WHOSE PRO-RATA SHARE OF A SHARED RENEWABLE ENERGY FACILITY'S OUTPUT IS THE SAME; (I) DETERMINE THE APPROPRIATENESS OF A SUBSCRIBER COMPANY REQUIRING DEPOSITS FOR A SUBSCRIPTION IN A SHARED RENEWABLE FACILITY, AND IF SO DETERMINED, THE ALLOWANCES AND/OR LIMITATIONS FOR SUCH DEPOSITS; AND (J) INCLUDE ANY ADDITIONAL CONSUMER PROTECTIONS THE COMMISSION DEEMS NECESSARY. 7. IN DEVELOPING ITS ORDER, THE COMMISSION SHALL CONSIDER: (A) THE NECESSITY OF ADDITIONAL ELECTRIC CAPACITY IN AN ELECTRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION SYSTEM TERRITORY; (B) THE COST OF ELECTRIC SYSTEM UPGRADES NECESSARY TO ACCOMMODATE THE INTERCONNECTION AND OPERATION OF A SHARED RENEWABLE ENERGY FACILITY, INCLUDING THE IMPACT OF SUCH UPGRADES ON LOW-INCOME CUSTOMERS OF AN ELECTRIC CORPORATION; AND (C) THE ABILITY OF A SHARED RENEWABLE ENERGY FACILITY TO PRODUCE RELI- ABLE ELECTRICITY DURING TIMES OF PEAK ELECTRIC DEMAND AS DETERMINED BY THE COMMISSION. 8. INTERCONNECTION OF SHARED RENEWABLE ENERGY FACILITIES AND CONDI- TIONS OF SERVICE. THE COMMISSION SHALL DEVELOP A MODEL CONTRACT TO GOVERN THE PROVISIONS OF INTERCONNECTION BETWEEN A SUBSCRIBER COMPANY AND AN ELECTRIC CORPORATION. UPON THE COMPLETION OF THE ORDER REQUIRED PURSUANT TO SUBDIVISION TWO OF THIS SECTION AN ELECTRIC CORPORATION SHALL PROVIDE FOR THE INTERCONNECTION OF SHARED RENEWABLE ENERGY FACILI- TIES PROVIDED THAT THE SUBSCRIBER COMPANY ENTERS INTO A CONTRACT WITH THE ELECTRIC CORPORATION, AND COMPLIES WITH THE ELECTRIC CORPORATION'S SCHEDULE AND WITH STANDARDS AND REQUIREMENTS OF THIS SECTION. NO ELEC- TRIC CORPORATION SHALL PERMIT THE INTERCONNECTION OF A SHARED RENEWABLE ENERGY FACILITY NOR ACCEPT A SUBSCRIPTION ROSTER FROM A SUBSCRIBER COMPANY FOR A SHARED RENEWABLE ENERGY FACILITY UNLESS SUCH FACILITY (A) HAS AT LEAST TEN SUBSCRIBERS; AND (B) IS LOCATED IN A SHARED RENEWABLE ENERGY FACILITY COMPATIBILITY AND ACCOMMODATION ZONE AS REFLECTED ON A MAP PURSUANT TO SUBDIVISION FOUR OF THIS SECTION. EACH ELECTRIC CORPO- RATION SHALL INTERCONNECT SHARED RENEWABLE ENERGY FACILITIES LOCATED WITHIN THE BOUNDARIES OF THE SHARED RENEWABLE ENERGY FACILITY COMPAT- IBILITY AND ACCOMMODATION ZONE MAP PURSUANT TO SUBDIVISION FOUR OF THIS SECTION ON A FIRST COME, FIRST SERVED BASIS, UNTIL THE TOTAL RATED GENERATING CAPACITY ATTRIBUTABLE TO SUCH FACILITIES IS EQUIVALENT TO ONE HALF OF ONE PERCENT OF THE ELECTRIC CORPORATION'S ELECTRIC DEMAND FOR THE YEAR TWO THOUSAND FIVE, AS DETERMINED BY THE COMMISSION, PROVIDED THAT THE COMMISSION SHALL HAVE THE AUTHORITY, AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FOUR, TO INCREASE THE PERCENT LIMIT IF IT DETERMINES THAT ADDITIONAL INTERCONNECTION OF SHARED RENEWABLE ENERGY FACILITIES IS IN THE PUBLIC INTEREST, PROVIDED FURTHER THAT NO GREATER THAN TWENTY PERCENT OF THE COMBINED NAMEPLATE CAPACITY OF SHARED RENEWABLE ENERGY FACILITIES AUTHORIZED PURSUANT TO THIS SECTION SHALL BE LOCATED IN A POTENTIAL ENVIRONMENTAL JUSTICE AREA AS DETERMINED BY THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, AS SUCH AREAS WERE DEPICTED ON MAY FIFTH, TWO THOUSAND FOURTEEN. IN THE EVENT THAT THE ELECTRIC CORPORATION DETER- MINES THAT IT IS NECESSARY TO INSTALL A DEDICATED TRANSFORMER OR TRANS- FORMERS, OR OTHER EQUIPMENT TO PROTECT THE SAFETY AND ADEQUACY OF ELEC- TRIC SERVICE PROVIDED TO CUSTOMERS, THE SUBSCRIBER COMPANY SHALL PAY THE
ELECTRIC CORPORATION'S ACTUAL COSTS OF INSTALLING THE TRANSFORMER OR TRANSFORMERS, OR OTHER EQUIPMENT. 9. (A) FOR A SHARED RENEWABLE ENERGY FACILITY, THE TOTAL AMOUNT OF ELECTRICAL OUTPUT AVAILABLE FOR ALLOCATION TO SUBSCRIBERS SHALL BE DETERMINED BY A PRODUCTION METER INSTALLED AT THE SHARED RENEWABLE ENER- GY FACILITY AND PAID FOR BY THE SUBSCRIBER COMPANY OWNING SUCH SHARED RENEWABLE ENERGY FACILITY. IT SHALL BE THE RESPONSIBILITY OF THE ELEC- TRIC CORPORATION TO READ THE PRODUCTION METER AND APPLY BILL CREDITS TO SUBSCRIBERS OF SUCH FACILITIES AS DIRECTED UNDER A SUBSCRIPTION ROSTER, PROVIDED THAT AN ELECTRIC CORPORATION MAY ASSESS A CHARGE TO A SUBSCRIB- ER COMPANY TO RECOVER REASONABLE EXPENSES RELATED TO THE READING OF A PRODUCTION METER. (B) A SUBSCRIBER COMPANY SHALL BE RESPONSIBLE FOR PROVIDING TO THE ELECTRIC CORPORATION, AT THE BEGINNING OF EACH BILLING CYCLE, OR OTHER PERIOD AS DETERMINED BY THE COMMISSION, A SUBSCRIPTION ROSTER IDENTIFY- ING THE PRO-RATA SHARE OF ELECTRICAL OUTPUT ALLOCATED TO EACH SUBSCRIB- ER. A SUBSCRIBER COMPANY MAY ADD ADDITIONAL SUBSCRIBER AGREEMENTS TO A SUBSCRIPTION ROSTER FOR THE PRECEDING BILLING CYCLE, OR OTHER PERIOD AS DETERMINED BY THE COMMISSION. (C) AT THE END OF EACH MONTH, THE ELECTRIC CORPORATION SHALL APPLY A CREDIT TO THE NEXT BILL FOR SERVICE TO EACH SUBSCRIBER BASED ON EACH SUBSCRIBER'S PRO-RATA SHARE OF THE ACTUAL ELECTRICAL OUTPUT OF SUCH FACILITY AT THE SAME RATE PER KILOWATT HOUR APPLICABLE TO SERVICE PROVIDED TO OTHER CUSTOMERS IN THE SAME SERVICE CLASS WHICH DO NOT SUBSCRIBE TO A SHARED RENEWABLE ENERGY FACILITY. (D) IN THE EVENT THAT THE ELECTRICAL OUTPUT PRODUCED BY A SHARED RENEWABLE ENERGY FACILITY AND ALLOCATED TO A SUBSCRIBER DURING A BILLING PERIOD EXCEEDS THE AMOUNT OF ELECTRICITY USED BY A SUBSCRIBER, THE ELEC- TRIC CORPORATION SHALL APPLY A CREDIT FOR SUCH EXCESS OUTPUT TO THE NEXT BILL FOR SERVICE TO THE SUBSCRIBER FOR THE NET ELECTRICITY PROVIDED AT THE SAME RATE PER KILOWATT HOUR APPLICABLE TO SERVICE PROVIDED TO OTHER CUSTOMERS IN THE SAME SERVICE CLASS WHICH DO NOT SUBSCRIBE TO A SHARED RENEWABLE ENERGY FACILITY. (E) IN THE EVENT THAT THE ELECTRIC CORPORATION IMPOSES CHARGES BASED ON KILOWATT DEMAND ON CUSTOMERS WHO ARE IN THE SAME SERVICE CLASS AS A SUBSCRIBER WHO IS ENTITLED TO THE OUTPUT OF A SHARED RENEWABLE ENERGY FACILITY PURSUANT TO A SUBSCRIPTION IN A SHARED RENEWABLE ENERGY FACILI- TY BUT ARE NOT SUBSCRIBERS, THE ELECTRIC CORPORATION MAY IMPOSE THE SAME CHARGES AT THE SAME RATES TO THE SUBSCRIBER, PROVIDED HOWEVER, THAT THE KILOWATT DEMAND FOR SUCH DEMAND CHARGES IS DETERMINED BY THE MAXIMUM MEASURED KILOWATT DEMAND ACTUALLY SUPPLIED BY THE ELECTRIC CORPORATION TO THE SUBSCRIBER DURING THE BILLING PERIOD. 10. (A) ON OR BEFORE THREE MONTHS AFTER THE EFFECTIVE DATE OF THIS SECTION, THE COMMISSION SHALL ESTABLISH STANDARDS FOR THE SAFE AND ADEQUATE INTERCONNECTION OF SHARED RENEWABLE ENERGY FACILITIES. SUCH STANDARDS MAY INCLUDE, BUT SHALL NOT BE LIMITED TO: (I) EQUIPMENT NECESSARY TO ISOLATE AUTOMATICALLY THE FACILITY FROM THE ELECTRIC TRANSMISSION AND DISTRIBUTION SYSTEM FOR VOLTAGE IN THE CASE OF VOLTAGE AND FREQUENCY DEVIATIONS, POWER OUTAGES AND OTHER EVENTS THE COMMISSION DEEMS NECESSARY; AND (II) A MANUAL LOCKABLE DISCONNECT SWITCH PAID FOR AND INSTALLED BY THE SUBSCRIBER COMPANY FOR THE PURPOSE OF ISOLATING THE FACILITY AND LOCATED IN AN EASILY ACCESSIBLE AREA ON THE PREMISES OF SUCH SHARED RENEWABLE ENERGY FACILITY AND EXTERNALLY ACCESSIBLE FOR THE PURPOSE OF ISOLATING THE SHARED RENEWABLE ENERGY FACILITY.
(B) IN THE EVENT THAT THE TOTAL RATED GENERATING CAPACITY OF A SHARED RENEWABLE ENERGY FACILITY THAT PROVIDES ELECTRICITY TO THE ELECTRIC CORPORATION THROUGH THE SAME LOCAL FEEDER LINE EXCEEDS TWENTY PERCENT OF THE RATED CAPACITY OF THE LOCAL FEEDER LINE, THE ELECTRIC CORPORATION MAY REQUIRE THE SUBSCRIBER COMPANY OWNING SUCH SHARED RENEWABLE ENERGY FACILITY TO COMPLY WITH REASONABLE MEASURES TO ENSURE THE SAFETY OF THE LOCAL FEEDER LINE. (C) UPON ITS OWN MOTION OR UPON A COMPLAINT, THE COMMISSION, OR ITS DESIGNATED REPRESENTATIVE, MAY INVESTIGATE AND MAKE A DETERMINATION AS TO THE REASONABLENESS AND NECESSITY OF THE STANDARDS OR RESPONSIBILITY FOR COMPLIANCE WITH THE STANDARDS. S 5. Subdivision (h) of section 1020-g of the public authorities law, as amended by chapter 546 of the laws of 2011, is amended to read as follows: (h) To implement programs and policies designed to provide for the interconnection of: (i) (A) solar electric generating equipment owned or operated by residential customers, (B) farm waste electric generating equipment owned or operated by customer-generators, (C) solar electric generating equipment owned or operated by non-residential customers, (D) micro-combined heat and power generating equipment owned, leased or operated by residential customers, (E) fuel cell electric generating equipment owned, leased or operated by residential customers, and (F) micro-hydroelectric generating equipment owned, leased or operated by customer-generators and for net energy metering consistent with section sixty-six-j of the public service law, to increase the efficiency of energy end use, to shift demand from periods of high demand to periods of low demand and to facilitate the development of cogeneration; [and] (ii) wind electric generating equipment owned or operated by customer- generators and for net energy metering consistent with section sixty- six-l of the public service law; AND (III) TO IMPLEMENT PROGRAMS AND POLICIES DESIGNED TO PROVIDE FOR THE INTERCONNECTION OF SHARED RENEWABLE ENERGY FACILITIES OWNED AND OPERATED BY SUBSCRIBER COMPANIES FOR THE BENEFIT OF RESIDENTIAL AND NON-RESIDENTIAL CUSTOMERS CONSISTENT WITH SECTION SIXTY-SIX-N OF THE PUBLIC SERVICE LAW. S 6. This act shall take effect immediately.

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