S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                          107
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                      (PREFILED)
                                    January 7, 2015
                                      ___________
       Introduced by M. of A. PAULIN, MOYA, ROSENTHAL, BARRETT, GALEF, GUNTHER,
         HOOPER,  LIFTON, LUPARDO, OTIS, QUART, TITONE, CRESPO, SOLAGES, ENGLE-
         BRIGHT, FAHY, RODRIGUEZ, BUCHWALD,  LENTOL,  MAGEE,  RIVERA,  SCHIMEL,
         THIELE -- read once and referred to the Committee on Energy
       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:
    1    Section 1. Subparagraph (i) of  paragraph  (b)  of  subdivision  4  of
    2  section 94-a of the executive law, as amended by section 12 of part A of
    3  chapter 173 of the laws of 2013, is amended to read as follows:
    4    (i) on behalf of the secretary, initiate, intervene in, or participate
    5  in  any  proceedings before the public service commission or the depart-
    6  ment of public service, to the extent authorized  by  sections  three-b,
    7  twenty-four-a,  SIXTY-SIX-O,  seventy-one,  eighty-four or ninety-six of
    8  the public service law or any other applicable provision of  law,  where
    9  he  or  she  deems  such initiation, intervention or participation to be
   10  necessary or appropriate;
   11    S 2. Section 2 of the public service law is amended by  adding  a  new
   12  subdivision 2-e to read as follows:
   13    2-E.  THE  TERM  "SHARED  RENEWABLE ENERGY FACILITY" WHEN USED IN THIS
   14  CHAPTER MEANS SOLAR  ELECTRIC  GENERATING  EQUIPMENT  AS  SUCH  TERM  IS
   15  DEFINED IN SECTION SIXTY-SIX-J OF THIS CHAPTER; AND WIND ELECTRIC GENER-
   16  ATING  EQUIPMENT  AS SUCH TERM IS DEFINED IN SECTION SIXTY-SIX-L OF THIS
   17  CHAPTER. SUCH FACILITIES SHALL: (A) NOT EXCEED A NAMEPLATE  CAPACITY  OF
   18  GREATER THAN TWO MEGAWATTS, PROVIDED THAT FACILITIES LOCATED IN A POTEN-
   19  TIAL  ENVIRONMENTAL  JUSTICE  AREA,  AS  DETERMINED BY THE DEPARTMENT OF
   20  ENVIRONMENTAL CONSERVATION AS SUCH AREAS WERE DEPICTED ON MAY FIFTH, TWO
   21  THOUSAND FOURTEEN, SHALL NOT EXCEED A NAMEPLATE CAPACITY OF GREATER THAN
   22  ONE MEGAWATT; (B) BE LOCATED, CONSTRUCTED AND  OPERATED,  IN  ACCORDANCE
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00892-02-5
       A. 107                              2
    1  WITH  ANY  APPLICABLE LOCAL LAW, ORDINANCE OR REGULATION; (C) BE LOCATED
    2  IN A SHARED RENEWABLE ENERGY FACILITY  COMPATIBILITY  AND  ACCOMMODATION
    3  ZONE  AS PROVIDED FOR IN SUBDIVISION FOUR OF SECTION SIXTY-SIX-O OF THIS
    4  CHAPTER;  (D) BE MANUFACTURED, INSTALLED AND OPERATED IN ACCORDANCE WITH
    5  APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS, CONNECTED TO THE  ELECTRIC
    6  SYSTEM AND OPERATED IN CONJUNCTION WITH AN ELECTRIC CORPORATION'S TRANS-
    7  MISSION AND DISTRIBUTION FACILITIES; AND (E) SHALL HAVE NO LESS THAN TEN
    8  SUBSCRIBERS.
    9    S  3.  Subdivision 1 of section 5 of the public service law is amended
   10  by adding a new paragraph i to read as follows:
   11    I. TO THE DETERMINATION OF COMPATIBILITY, INTERCONNECTION  AND  OPERA-
   12  TION  OF  SHARED  RENEWABLE ENERGY FACILITIES AS SUCH TERM IS DEFINED IN
   13  PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION SIXTY-SIX-O OF THIS CHAPTER.
   14    S 4. The public service law is amended by adding a new section 66-o to
   15  read as follows:
   16    S 66-O. SHARED  RENEWABLE  ENERGY  FACILITIES.  1.  AS  USED  IN  THIS
   17  SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   18    (A) "SUBSCRIBER" MEANS A RESIDENTIAL OR NON-RESIDENTIAL CUSTOMER OF AN
   19  ELECTRIC CORPORATION WHO HAS: (I) ENTERED INTO A POWER SUBSCRIBER AGREE-
   20  MENT  WITH  A SUBSCRIBER COMPANY; AND (II) IDENTIFIED ONE OR MORE METERS
   21  TO WHICH THE PRO-RATA SHARE OF THE ELECTRICAL OUTPUT OF A FACILITY SHALL
   22  BE ATTRIBUTED PURSUANT TO HIS OR HER POWER  SUBSCRIBER  AGREEMENT.  SUCH
   23  METERS  SHALL  BE  WITHIN EITHER THE SAME COUNTY AS THE SHARED RENEWABLE
   24  ENERGY FACILITY TO WHICH A SUBSCRIBER HAS ENTERED INTO A POWER SUBSCRIB-
   25  ER AGREEMENT, EXCEPT THAT IN THE CASE OF A SUBSCRIBER WHOSE  METERS  ARE
   26  LOCATED  IN  A  COUNTY OF TWENTY THOUSAND OR LESS, ACCORDING TO THE MOST
   27  RECENT CENSUS, THE SUBSCRIBER MAY ENTER INTO A POWER  SUBSCRIBER  AGREE-
   28  MENT WITH A SUBSCRIBER COMPANY WHOSE SHARED RENEWABLE ENERGY FACILITY IS
   29  LOCATED IN AN ADJACENT COUNTY OF TWENTY THOUSAND OR LESS WITHIN THE SAME
   30  SERVICE  TERRITORY  OF  THE ELECTRIC CORPORATION OF WHICH HE OR SHE IS A
   31  CUSTOMER, AND IS LOCATED WITHIN THE SAME LOAD ZONE AS DETERMINED BY  THE
   32  LOCATION BASED MARGINAL PRICE AS OF THE DATE OF THE INITIAL REQUEST BY A
   33  SUBSCRIBER COMPANY TO INTERCONNECT A SHARED RENEWABLE ENERGY FACILITY.
   34    (B)  "POWER  SUBSCRIBER  AGREEMENT" OR "SUBSCRIBER AGREEMENT" MEANS AN
   35  AGREEMENT BETWEEN A SUBSCRIBER AND A SUBSCRIBER COMPANY THAT MEETS STAN-
   36  DARDS PURSUANT TO PARAGRAPH (A) OF SUBDIVISION SIX OF THIS SECTION. SUCH
   37  AGREEMENT SHALL: (I) INCLUDE THE NAME, ADDRESS AND ELECTRIC  CORPORATION
   38  ACCOUNT NUMBER TO WHICH THE SUBSCRIPTION SHALL BE ATTRIBUTED; (II) ENTI-
   39  TLE  A SUBSCRIBER TO A PRO-RATA SHARE OF THE ACTUAL ELECTRICAL OUTPUT OF
   40  A SHARED RENEWABLE ENERGY FACILITY; AND (III) PROVIDE THAT  A  SUBSCRIB-
   41  ER'S  PRO-RATA  SHARE  WILL  BE  REFLECTED  AS A BILL CREDIT AGAINST THE
   42  SUBSCRIBER'S MONTHLY ELECTRIC USAGE AS METERED BY HIS  OR  HER  ELECTRIC
   43  CORPORATION  AND  BILLED  BY SUCH ELECTRIC CORPORATION ON A PER KILOWATT
   44  HOUR BASIS.
   45    (C) "SUBSCRIPTION ROSTER" MEANS THE COMPILATION  OF  INFORMATION  FROM
   46  POWER  SUBSCRIBER  AGREEMENTS  FOR  A PARTICULAR SHARED RENEWABLE ENERGY
   47  FACILITY WHICH IS COLLECTED BY THE SUBSCRIBER COMPANY OWNING SUCH FACIL-
   48  ITY FOR THE PURPOSES OF DIRECTING AN ELECTRIC CORPORATION TO APPLY  BILL
   49  CREDITS  AGAINST  SUBSCRIBERS'  MONTHLY  ELECTRIC  USAGE  AS METERED AND
   50  RECOVERED BY SUCH ELECTRIC CORPORATION THROUGH A MONTHLY BILL.
   51    (D) "SUBSCRIBER COMPANY" MEANS A GENERAL PARTNERSHIP, LIMITED PARTNER-
   52  SHIP, LIMITED LIABILITY COMPANY, COOPERATIVE, S-CORPORATION,  C-CORPORA-
   53  TION OR NOT-FOR-PROFIT CORPORATION WHOSE PURPOSE IS TO OWN AND OPERATE A
   54  SHARED RENEWABLE ENERGY FACILITY.
   55    (E)   "SUBSCRIPTION"  MEANS  THE  RIGHTS  AND  RESPONSIBILITIES  OF  A
   56  SUBSCRIBER TO A PRO-RATA PORTION OF THE ACTUAL ELECTRICAL  OUTPUT  OF  A
       A. 107                              3
    1  SHARED  RENEWABLE  ENERGY  FACILITY, AS SET FORTH IN A SUBSCRIBER AGREE-
    2  MENT.  A SUBSCRIPTION SHALL: (I) AT A MINIMUM, REPRESENT  AT  LEAST  ONE
    3  KILOWATT  OF  A  SHARED RENEWABLE ENERGY FACILITY'S GENERATING CAPACITY;
    4  AND  (II)  NOT  EXCEED  ONE HUNDRED PERCENT OF A SUBSCRIBER'S ELECTRICAL
    5  CONSUMPTION AS MEASURED IN KILOWATT HOURS FROM THE  TWELVE-MONTH  PERIOD
    6  IMMEDIATELY PRECEDING THE ESTABLISHMENT OF A SUBSCRIBER AGREEMENT.
    7    (F) "BILL CREDIT" MEANS A CREDIT MEASURED ON A PER KILOWATT HOUR BASIS
    8  AND  APPLIED AGAINST A SUBSCRIBER'S NEXT MONTHLY BILL FOR SERVICE ISSUED
    9  BY HIS OR HER ELECTRIC CORPORATION BASED UPON THE PRO-RATA SHARE OF  THE
   10  ELECTRICAL  OUTPUT  OF THE SHARED RENEWABLE ENERGY FACILITY TO WHICH THE
   11  CUSTOMER IS ENTITLED PURSUANT TO A SUBSCRIBER AGREEMENT.
   12    2. NO LATER THAN JULY THIRTY-FIRST, TWO THOUSAND SIXTEEN, THE  COMMIS-
   13  SION  SHALL  COMMENCE  A  PROCEEDING  TO: (A) DEVELOP A STATEWIDE SHARED
   14  RENEWABLE ENERGY FACILITY COMPATIBILITY AND ACCOMMODATION ZONE MAP;  (B)
   15  ESTABLISH  CRITERIA  FOR THE COMPATIBLE INTERCONNECTION AND OPERATION OF
   16  SHARED RENEWABLE ENERGY FACILITIES AND SUBSCRIBER PROTECTIONS;  AND  (C)
   17  DEVELOP SUBSCRIBER PROTECTION STANDARDS.
   18    3.  IN  DEVELOPING  THE  ORDER  PURSUANT  TO  SUBDIVISION  TWO OF THIS
   19  SECTION, THE COMMISSION SHALL CONSULT WITH THE STATE DEPARTMENT OF ENVI-
   20  RONMENTAL CONSERVATION AND THE BULK SYSTEM  OPERATOR  SERVING  NEW  YORK
   21  STATE.  THE  COMMISSION  SHALL  ALSO  SOLICIT  PARTICIPATION  AND PUBLIC
   22  COMMENT FROM STAKEHOLDER ORGANIZATIONS INCLUDING, BUT NOT LIMITED TO:
   23    (A) ORGANIZATIONS ADVOCATING FOR ENVIRONMENTAL CONCERNS;
   24    (B) ORGANIZATIONS REPRESENTING RENEWABLE ENERGY INDUSTRIES;
   25    (C) ELECTRIC CORPORATIONS; AND
   26    (D) THE LONG ISLAND POWER AUTHORITY.
   27    4. THE COMMISSION MAP PURSUANT TO  SUBDIVISION  TWO  OF  THIS  SECTION
   28  SHALL  BE  DEVELOPED  ON  A COUNTY-BY-COUNTY BASIS. THE COMMISSION SHALL
   29  DETERMINE WHICH COUNTIES, IF  ANY,  WOULD  BENEFIT  FROM  THE  INTERCON-
   30  NECTION,  OPERATION  AND  ELECTRICAL  OUTPUT  OF SHARED RENEWABLE ENERGY
   31  FACILITIES, TAKING INTO CONSIDERATION FACTORS AFFECTING  THE  PRICE  AND
   32  DELIVERABILITY  OF  ELECTRICITY  IN  EACH  COUNTY.  THE COMMISSION SHALL
   33  PUBLISH SUCH MAP AND ACCOMMODATE THE INTERCONNECTION OF SHARED RENEWABLE
   34  ENERGY FACILITIES WHICH MEET THE REQUIREMENTS OF THIS  SECTION  AND  ANY
   35  RULES AND REGULATIONS OF THE COMMISSION PERTAINING THERETO NO LATER THAN
   36  JULY  THIRTY-FIRST, TWO THOUSAND SEVENTEEN. SUCH MAP SHALL BE UPDATED NO
   37  LATER THAN JULY THIRTY-FIRST OF EACH SUCCEEDING YEAR. IN DEVELOPING  THE
   38  MAP  PURSUANT  TO  THIS  SUBDIVISION, THE COMMISSION SHALL CONSIDER ON A
   39  COUNTY-BY-COUNTY BASIS:
   40    (A) THE POTENTIAL NEED FOR ADDITIONAL ELECTRIC GENERATION AND/OR TRAN-
   41  SMISSION WITHIN THE PRECEDING TEN-YEAR PERIOD;
   42    (B) ELECTRIC CONGESTION ON THE HIGH VOLTAGE TRANSMISSION NETWORK WHICH
   43  HAS CREATED OR IS PROJECTED TO CREATE WITHIN TEN YEARS, A  SYSTEM  RELI-
   44  ABILITY PROBLEM, OR, AS DETERMINED BY THE COMMISSION, HAS CONTRIBUTED TO
   45  A SIGNIFICANT INCREASE IN THE WHOLESALE COST OF ELECTRICITY; AND
   46    (C)  THE  POTENTIAL FOR REDUCTION IN OVERALL EMISSIONS OF CARBON DIOX-
   47  IDE, SULFUR DIOXIDE, NITROGEN OXIDE AND PARTICULATE MATTER 2.5 (PM  2.5)
   48  THAT  WOULD  BE ATTRIBUTABLE TO THE OPERATION OF SHARED RENEWABLE ENERGY
   49  FACILITIES.
   50    5. THE ORDER ESTABLISHED BY THE COMMISSION PURSUANT TO SUBDIVISION TWO
   51  OF THIS SECTION SHALL INCLUDE  STANDARDS  FOR  THE  INTERCONNECTION  AND
   52  OPERATION  OF  SHARED  RENEWABLE  ENERGY  FACILITIES,  INCLUDING BUT NOT
   53  LIMITED TO REQUIREMENTS THAT:
   54    (A) SHARED RENEWABLE ENERGY FACILITIES SHALL  BE  DESIGNED  TO  ENSURE
   55  SAFE AND ADEQUATE OPERATION AND THAT ANY COSTS ASSOCIATED WITH EQUIPMENT
       A. 107                              4
    1  AND  TECHNOLOGY THE COMMISSION DEEMS NECESSARY FOR SUCH PURPOSE SHALL BE
    2  THE RESPONSIBILITY OF A SUBSCRIBER COMPANY;
    3    (B)  SHARED RENEWABLE ENERGY FACILITIES ARE DESIGNED TO OPERATE (I) IN
    4  THE SAME SERVICE TERRITORY OF THE ELECTRIC  CORPORATION  AND  COUNTY  OR
    5  COUNTIES  AS  AUTHORIZED  BY THE COMMISSION TO WHICH ITS SUBSCRIBERS ARE
    6  METERED FOR ELECTRICAL USAGE; AND (II) ARE LOCATED WITHIN THE SAME  LOAD
    7  ZONE  AS  DETERMINED BY THE LOCATION BASED MARGINAL PRICE AS OF THE DATE
    8  OF THE INITIAL REQUEST BY A SUBSCRIBER COMPANY TO INTERCONNECT A  SHARED
    9  RENEWABLE ENERGY FACILITY;
   10    (C)  A  SHARED  RENEWABLE ENERGY FACILITY'S ELECTRICAL OUTPUT WILL NOT
   11  RESULT IN ELECTRICAL CONGESTION OR CONTRIBUTE SIGNIFICANTLY TO  ELECTRIC
   12  CONGESTION WITHIN THE SERVICE TERRITORY OF AN ELECTRIC CORPORATION;
   13    (D)  A SUBSCRIBER COMPANY SHALL ONLY SELL TO SUBSCRIBERS AND SHALL NOT
   14  SELL OR OTHERWISE MARKET TO A THIRD-PARTY, ELECTRIC CORPORATION,  PUBLIC
   15  POWER AUTHORITY, RURAL ELECTRIC CO-OPERATIVE, OR WHOLESALE BULK ELECTRIC
   16  SYSTEM  OPERATOR,  WHETHER  OR  NOT  SUCH WHOLESALE BULK ELECTRIC SYSTEM
   17  OPERATOR IS LOCATED IN NEW YORK; AND
   18    (E) AN ELECTRIC CORPORATION SHALL NOT BE REQUIRED TO  PURCHASE  ENERGY
   19  PRODUCED  BY  A  SHARED  RENEWABLE  ENERGY  FACILITY BUT WHICH IS UNSUB-
   20  SCRIBED.
   21    6. THE ORDER ESTABLISHED BY THE COMMISSION  SHALL  INCLUDE  SUBSCRIBER
   22  PROTECTION  STANDARDS  TO BE INCLUDED IN THE POWER SUBSCRIBER AGREEMENT,
   23  WHICH SHALL:
   24    (A) (I) ESTABLISH CLEAR AND CONSISTENT CHARGES BASED ON A SUBSCRIBER'S
   25  PRO-RATA SHARE OF A SHARED RENEWABLE ENERGY FACILITY'S OUTPUT  EXPRESSED
   26  AS MONTHLY CHARGES BASED ON PER KILOWATT HOUR PRODUCTION; (II) GUARANTEE
   27  REFUNDS FROM THE SUBSCRIBER COMPANY TO THE SUBSCRIBER FOR ANY PORTION OF
   28  SUCH  SHARE THAT SUCH SHARED RENEWABLE ENERGY FACILITY DOES NOT ACTUALLY
   29  PRODUCE; AND (III) GUARANTEE REFUNDS FROM A SUBSCRIBER COMPANY  FOR  ANY
   30  PORTION  OF  A  SUBSCRIBER'S SHARE THAT WAS NOT ACTUALLY CONSUMED BY THE
   31  SUBSCRIBER;
   32    (B) LIMIT THE TERM OF A POWER SUBSCRIBER AGREEMENT: (I) FOR  SUBSCRIB-
   33  ERS  WHO  ARE  RESIDENTIAL  CUSTOMERS  OF AN ELECTRIC CORPORATION, TO NO
   34  GREATER THAN FIVE YEARS; AND (II) FOR SUBSCRIBERS WHO  ARE  NON-RESIDEN-
   35  TIAL CUSTOMERS OF AN ELECTRIC CORPORATION, TO NO GREATER THAN TEN YEARS,
   36  PROVIDED  THAT  A  SUBSCRIBER MAY RENEW HIS OR HER SUBSCRIPTION UPON ITS
   37  EXPIRATION FOR AN ADDITIONAL TERM;
   38    (C) REQUIRE THAT, IN THE CASE OF A SHARED  RENEWABLE  ENERGY  FACILITY
   39  WHICH HAS NOT BEEN INTERCONNECTED UPON THE SIGNING OF A POWER SUBSCRIBER
   40  AGREEMENT,   THE   SUBSCRIBER  COMPANY  SHALL  IMMEDIATELY  NOTIFY  EACH
   41  SUBSCRIBER UPON THE INTERCONNECTION  OF  SUCH  SHARED  RENEWABLE  ENERGY
   42  FACILITY  THAT  HE  OR  SHE  HAS FORTY-FIVE DAYS UPON THE RECEIPT OF THE
   43  NOTICE REQUIRED  PURSUANT  TO  THIS  PARAGRAPH  TO  CANCEL  HIS  OR  HER
   44  SUBSCRIPTION  WITH  NO  CANCELLATION OR OTHER CHARGES ASSESSED BY HIS OR
   45  HER SUBSCRIBER COMPANY, PROVIDED  THAT  IF  A  SHARED  RENEWABLE  ENERGY
   46  FACILITY  IS  NOT  INTERCONNECTED WITHIN ONE YEAR OF THE COMPLETION OF A
   47  POWER SUBSCRIBER AGREEMENT, THE SUBSCRIBER AGREEMENT WILL  BE  NULL  AND
   48  VOID;
   49    (D)  REQUIRE  THAT,  IN THE CASE OF A SHARED RENEWABLE ENERGY FACILITY
   50  WHICH WAS INTERCONNECTED PRIOR TO THE  SIGNING  OF  A  POWER  SUBSCRIBER
   51  AGREEMENT, THE SUBSCRIBER SHALL HAVE FORTY-FIVE DAYS UPON THE SIGNING OF
   52  A  POWER  SUBSCRIBER AGREEMENT TO CANCEL HIS OR HER SUBSCRIPTION WITH NO
   53  CANCELLATION OR OTHER CHARGES ASSESSED BY HIS OR HER SUBSCRIBER COMPANY;
   54    (E) PROHIBIT A SUBSCRIBER COMPANY  FROM  TRANSFERRING  A  SUBSCRIPTION
   55  FROM  ONE  SHARED  RENEWABLE  ENERGY  FACILITY TO ANOTHER, REGARDLESS OF
   56  WHETHER THE SUBSCRIBER FACILITY TO WHICH A SUBSCRIBER AGREEMENT WOULD BE
       A. 107                              5
    1  TRANSFERRED IS  OWNED  OR  OPERATED  BY  THE  SAME  COMPANY,  WITHOUT  A
    2  SUBSCRIBER'S CONSENT;
    3    (F)  ESTABLISH  THAT  ANY  COMPLAINTS BY A SUBSCRIBER ABOUT HIS OR HER
    4  SUBSCRIPTION SHALL BE NOT BE THE RESPONSIBILITY OF THE  ELECTRIC  CORPO-
    5  RATION  BUT INSTEAD SHALL BE THE RESPONSIBILITY OF THE SUBSCRIBER COMPA-
    6  NY;
    7    (G) REQUIRE A SUBSCRIBER COMPANY SEEKING TO INTERCONNECT  PURSUANT  TO
    8  THIS SECTION TO ESTABLISH AND MAINTAIN A COMPLAINT HANDLING PROCESS;
    9    (H)   PROHIBIT   A   SUBSCRIBER  COMPANY  FROM  CHARGING  DIFFERENTIAL
   10  SUBSCRIPTION FEES TO SUBSCRIBERS WHO ARE CUSTOMERS OF THE SAME CLASS  OF
   11  ELECTRIC  SERVICE  WHOSE  PRO-RATA  SHARE  OF  A SHARED RENEWABLE ENERGY
   12  FACILITY'S OUTPUT IS THE SAME;
   13    (I) DETERMINE THE APPROPRIATENESS OF A  SUBSCRIBER  COMPANY  REQUIRING
   14  DEPOSITS  FOR  A  SUBSCRIPTION IN A SHARED RENEWABLE FACILITY, AND IF SO
   15  DETERMINED, THE ALLOWANCES AND/OR LIMITATIONS FOR SUCH DEPOSITS; AND
   16    (J) INCLUDE ANY ADDITIONAL CONSUMER PROTECTIONS THE  COMMISSION  DEEMS
   17  NECESSARY.
   18    7. IN DEVELOPING ITS ORDER, THE COMMISSION SHALL CONSIDER:
   19    (A)  THE  NECESSITY  OF  ADDITIONAL  ELECTRIC  CAPACITY IN AN ELECTRIC
   20  CORPORATION'S TRANSMISSION AND DISTRIBUTION SYSTEM TERRITORY;
   21    (B) THE COST OF ELECTRIC SYSTEM UPGRADES NECESSARY TO ACCOMMODATE  THE
   22  INTERCONNECTION  AND  OPERATION  OF  A SHARED RENEWABLE ENERGY FACILITY,
   23  INCLUDING THE IMPACT OF SUCH UPGRADES  ON  LOW-INCOME  CUSTOMERS  OF  AN
   24  ELECTRIC CORPORATION; AND
   25    (C) THE ABILITY OF A SHARED RENEWABLE ENERGY FACILITY TO PRODUCE RELI-
   26  ABLE  ELECTRICITY  DURING TIMES OF PEAK ELECTRIC DEMAND AS DETERMINED BY
   27  THE COMMISSION.
   28    8. INTERCONNECTION OF SHARED RENEWABLE ENERGY  FACILITIES  AND  CONDI-
   29  TIONS  OF  SERVICE.  THE  COMMISSION  SHALL  DEVELOP A MODEL CONTRACT TO
   30  GOVERN THE PROVISIONS OF INTERCONNECTION BETWEEN  A  SUBSCRIBER  COMPANY
   31  AND  AN  ELECTRIC CORPORATION. UPON THE COMPLETION OF THE ORDER REQUIRED
   32  PURSUANT TO SUBDIVISION TWO OF  THIS  SECTION  AN  ELECTRIC  CORPORATION
   33  SHALL PROVIDE FOR THE INTERCONNECTION OF SHARED RENEWABLE ENERGY FACILI-
   34  TIES  PROVIDED  THAT  THE SUBSCRIBER COMPANY ENTERS INTO A CONTRACT WITH
   35  THE ELECTRIC CORPORATION, AND COMPLIES WITH THE  ELECTRIC  CORPORATION'S
   36  SCHEDULE  AND  WITH STANDARDS AND REQUIREMENTS OF THIS SECTION. NO ELEC-
   37  TRIC CORPORATION SHALL PERMIT THE INTERCONNECTION OF A SHARED  RENEWABLE
   38  ENERGY  FACILITY  NOR  ACCEPT  A  SUBSCRIPTION  ROSTER FROM A SUBSCRIBER
   39  COMPANY FOR A SHARED RENEWABLE ENERGY FACILITY UNLESS SUCH FACILITY  (A)
   40  HAS  AT  LEAST TEN SUBSCRIBERS; AND (B) IS LOCATED IN A SHARED RENEWABLE
   41  ENERGY FACILITY COMPATIBILITY AND ACCOMMODATION ZONE AS REFLECTED  ON  A
   42  MAP  PURSUANT  TO SUBDIVISION FOUR OF THIS SECTION. EACH ELECTRIC CORPO-
   43  RATION SHALL INTERCONNECT SHARED  RENEWABLE  ENERGY  FACILITIES  LOCATED
   44  WITHIN  THE  BOUNDARIES  OF THE SHARED RENEWABLE ENERGY FACILITY COMPAT-
   45  IBILITY AND ACCOMMODATION ZONE MAP PURSUANT TO SUBDIVISION FOUR OF  THIS
   46  SECTION  ON  A  FIRST  COME,  FIRST  SERVED BASIS, UNTIL THE TOTAL RATED
   47  GENERATING CAPACITY ATTRIBUTABLE TO SUCH FACILITIES IS EQUIVALENT TO ONE
   48  HALF OF ONE PERCENT OF THE ELECTRIC CORPORATION'S  ELECTRIC  DEMAND  FOR
   49  THE  YEAR  TWO  THOUSAND FIVE, AS DETERMINED BY THE COMMISSION, PROVIDED
   50  THAT THE COMMISSION SHALL HAVE THE AUTHORITY, AFTER JANUARY  FIRST,  TWO
   51  THOUSAND  TWENTY-FIVE,  TO  INCREASE  THE PERCENT LIMIT IF IT DETERMINES
   52  THAT ADDITIONAL INTERCONNECTION OF SHARED RENEWABLE ENERGY FACILITIES IS
   53  IN THE PUBLIC INTEREST, PROVIDED FURTHER THAT  NO  GREATER  THAN  TWENTY
   54  PERCENT  OF  THE  COMBINED NAMEPLATE CAPACITY OF SHARED RENEWABLE ENERGY
   55  FACILITIES AUTHORIZED PURSUANT TO THIS SECTION SHALL  BE  LOCATED  IN  A
   56  POTENTIAL  ENVIRONMENTAL JUSTICE AREA AS DETERMINED BY THE DEPARTMENT OF
       A. 107                              6
    1  ENVIRONMENTAL CONSERVATION, AS SUCH AREAS WERE DEPICTED  ON  MAY  FIFTH,
    2  TWO THOUSAND FOURTEEN. IN THE EVENT THAT THE ELECTRIC CORPORATION DETER-
    3  MINES  THAT IT IS NECESSARY TO INSTALL A DEDICATED TRANSFORMER OR TRANS-
    4  FORMERS,  OR OTHER EQUIPMENT TO PROTECT THE SAFETY AND ADEQUACY OF ELEC-
    5  TRIC SERVICE PROVIDED TO CUSTOMERS, THE SUBSCRIBER COMPANY SHALL PAY THE
    6  ELECTRIC CORPORATION'S ACTUAL COSTS OF  INSTALLING  THE  TRANSFORMER  OR
    7  TRANSFORMERS, OR OTHER EQUIPMENT.
    8    9.  (A)  FOR  A  SHARED RENEWABLE ENERGY FACILITY, THE TOTAL AMOUNT OF
    9  ELECTRICAL OUTPUT AVAILABLE  FOR  ALLOCATION  TO  SUBSCRIBERS  SHALL  BE
   10  DETERMINED BY A PRODUCTION METER INSTALLED AT THE SHARED RENEWABLE ENER-
   11  GY  FACILITY  AND  PAID FOR BY THE SUBSCRIBER COMPANY OWNING SUCH SHARED
   12  RENEWABLE ENERGY FACILITY. IT SHALL BE THE RESPONSIBILITY OF  THE  ELEC-
   13  TRIC  CORPORATION TO READ THE PRODUCTION METER AND APPLY BILL CREDITS TO
   14  SUBSCRIBERS OF SUCH FACILITIES AS DIRECTED UNDER A SUBSCRIPTION  ROSTER,
   15  PROVIDED THAT AN ELECTRIC CORPORATION MAY ASSESS A CHARGE TO A SUBSCRIB-
   16  ER  COMPANY  TO  RECOVER REASONABLE EXPENSES RELATED TO THE READING OF A
   17  PRODUCTION METER.
   18    (B) A SUBSCRIBER COMPANY SHALL BE RESPONSIBLE  FOR  PROVIDING  TO  THE
   19  ELECTRIC  CORPORATION,  AT THE BEGINNING OF EACH BILLING CYCLE, OR OTHER
   20  PERIOD AS DETERMINED BY THE COMMISSION, A SUBSCRIPTION ROSTER  IDENTIFY-
   21  ING  THE PRO-RATA SHARE OF ELECTRICAL OUTPUT ALLOCATED TO EACH SUBSCRIB-
   22  ER. A SUBSCRIBER COMPANY MAY ADD ADDITIONAL SUBSCRIBER AGREEMENTS  TO  A
   23  SUBSCRIPTION  ROSTER FOR THE PRECEDING BILLING CYCLE, OR OTHER PERIOD AS
   24  DETERMINED BY THE COMMISSION.
   25    (C) AT THE END OF EACH MONTH, THE ELECTRIC CORPORATION SHALL  APPLY  A
   26  CREDIT  TO  THE  NEXT  BILL FOR SERVICE TO EACH SUBSCRIBER BASED ON EACH
   27  SUBSCRIBER'S PRO-RATA SHARE OF THE  ACTUAL  ELECTRICAL  OUTPUT  OF  SUCH
   28  FACILITY  AT  THE  SAME  RATE  PER  KILOWATT  HOUR APPLICABLE TO SERVICE
   29  PROVIDED TO OTHER CUSTOMERS IN THE  SAME  SERVICE  CLASS  WHICH  DO  NOT
   30  SUBSCRIBE TO A SHARED RENEWABLE ENERGY FACILITY.
   31    (D)  IN  THE  EVENT  THAT  THE  ELECTRICAL OUTPUT PRODUCED BY A SHARED
   32  RENEWABLE ENERGY FACILITY AND ALLOCATED TO A SUBSCRIBER DURING A BILLING
   33  PERIOD EXCEEDS THE AMOUNT OF ELECTRICITY USED BY A SUBSCRIBER, THE ELEC-
   34  TRIC CORPORATION SHALL APPLY A CREDIT FOR SUCH EXCESS OUTPUT TO THE NEXT
   35  BILL FOR SERVICE TO THE SUBSCRIBER FOR THE NET ELECTRICITY  PROVIDED  AT
   36  THE  SAME RATE PER KILOWATT HOUR APPLICABLE TO SERVICE PROVIDED TO OTHER
   37  CUSTOMERS IN THE SAME SERVICE CLASS WHICH DO NOT SUBSCRIBE TO  A  SHARED
   38  RENEWABLE ENERGY FACILITY.
   39    (E)  IN  THE EVENT THAT THE ELECTRIC CORPORATION IMPOSES CHARGES BASED
   40  ON KILOWATT DEMAND ON CUSTOMERS WHO ARE IN THE SAME SERVICE CLASS  AS  A
   41  SUBSCRIBER  WHO  IS  ENTITLED TO THE OUTPUT OF A SHARED RENEWABLE ENERGY
   42  FACILITY PURSUANT TO A SUBSCRIPTION IN A SHARED RENEWABLE ENERGY FACILI-
   43  TY BUT ARE NOT SUBSCRIBERS, THE ELECTRIC CORPORATION MAY IMPOSE THE SAME
   44  CHARGES AT THE SAME RATES TO THE SUBSCRIBER, PROVIDED HOWEVER, THAT  THE
   45  KILOWATT  DEMAND  FOR  SUCH  DEMAND CHARGES IS DETERMINED BY THE MAXIMUM
   46  MEASURED KILOWATT DEMAND ACTUALLY SUPPLIED BY THE  ELECTRIC  CORPORATION
   47  TO THE SUBSCRIBER DURING THE BILLING PERIOD.
   48    10.  (A)  ON  OR  BEFORE THREE MONTHS AFTER THE EFFECTIVE DATE OF THIS
   49  SECTION, THE COMMISSION SHALL  ESTABLISH  STANDARDS  FOR  THE  SAFE  AND
   50  ADEQUATE  INTERCONNECTION  OF  SHARED  RENEWABLE ENERGY FACILITIES. SUCH
   51  STANDARDS MAY INCLUDE, BUT SHALL NOT BE LIMITED TO:
   52    (I) EQUIPMENT NECESSARY TO ISOLATE AUTOMATICALLY THE FACILITY FROM THE
   53  ELECTRIC TRANSMISSION AND DISTRIBUTION SYSTEM FOR VOLTAGE IN THE CASE OF
   54  VOLTAGE AND FREQUENCY DEVIATIONS, POWER OUTAGES  AND  OTHER  EVENTS  THE
   55  COMMISSION DEEMS NECESSARY; AND
       A. 107                              7
    1    (II) A MANUAL LOCKABLE DISCONNECT SWITCH PAID FOR AND INSTALLED BY THE
    2  SUBSCRIBER COMPANY FOR THE PURPOSE OF ISOLATING THE FACILITY AND LOCATED
    3  IN  AN  EASILY  ACCESSIBLE AREA ON THE PREMISES OF SUCH SHARED RENEWABLE
    4  ENERGY FACILITY AND EXTERNALLY ACCESSIBLE FOR THE PURPOSE  OF  ISOLATING
    5  THE SHARED RENEWABLE ENERGY FACILITY.
    6    (B)  IN THE EVENT THAT THE TOTAL RATED GENERATING CAPACITY OF A SHARED
    7  RENEWABLE ENERGY FACILITY THAT  PROVIDES  ELECTRICITY  TO  THE  ELECTRIC
    8  CORPORATION THROUGH THE SAME LOCAL FEEDER LINE EXCEEDS TWENTY PERCENT OF
    9  THE  RATED  CAPACITY  OF THE LOCAL FEEDER LINE, THE ELECTRIC CORPORATION
   10  MAY REQUIRE THE SUBSCRIBER COMPANY OWNING SUCH SHARED  RENEWABLE  ENERGY
   11  FACILITY  TO COMPLY WITH REASONABLE MEASURES TO ENSURE THE SAFETY OF THE
   12  LOCAL FEEDER LINE.
   13    (C) UPON ITS OWN MOTION OR UPON A COMPLAINT, THE  COMMISSION,  OR  ITS
   14  DESIGNATED  REPRESENTATIVE,  MAY INVESTIGATE AND MAKE A DETERMINATION AS
   15  TO THE REASONABLENESS AND NECESSITY OF THE STANDARDS  OR  RESPONSIBILITY
   16  FOR COMPLIANCE WITH THE STANDARDS.
   17    S  5. Subdivision (h) of section 1020-g of the public authorities law,
   18  as amended by chapter 546 of the laws of 2011, is  amended  to  read  as
   19  follows:
   20    (h)  To  implement  programs  and policies designed to provide for the
   21  interconnection of: (i) (A) solar electric generating equipment owned or
   22  operated by residential customers, (B) farm  waste  electric  generating
   23  equipment  owned  or operated by customer-generators, (C) solar electric
   24  generating equipment owned or operated by non-residential customers, (D)
   25  micro-combined heat and power  generating  equipment  owned,  leased  or
   26  operated  by  residential  customers,  (E) fuel cell electric generating
   27  equipment owned, leased or operated by residential  customers,  and  (F)
   28  micro-hydroelectric  generating  equipment  owned, leased or operated by
   29  customer-generators and for net energy metering consistent with  section
   30  sixty-six-j  of  the  public  service law, to increase the efficiency of
   31  energy end use, to shift demand from periods of high demand  to  periods
   32  of  low  demand and to facilitate the development of cogeneration; [and]
   33  (ii) wind electric generating equipment owned or operated  by  customer-
   34  generators  and  for  net energy metering consistent with section sixty-
   35  six-l of the public service law; AND (III)  TO  IMPLEMENT  PROGRAMS  AND
   36  POLICIES DESIGNED TO PROVIDE FOR THE INTERCONNECTION OF SHARED RENEWABLE
   37  ENERGY  FACILITIES  OWNED  AND  OPERATED BY SUBSCRIBER COMPANIES FOR THE
   38  BENEFIT OF RESIDENTIAL AND  NON-RESIDENTIAL  CUSTOMERS  CONSISTENT  WITH
   39  SECTION SIXTY-SIX-O OF THE PUBLIC SERVICE LAW.
   40    S 6. This act shall take effect immediately.