Relates to net metering of electric generating facilities; repealer

Summary of provisions

Section 1 of the bill would add a new Public Service Law ("PSL") § 66-j that would merge the provisions of the existing version of PSL § 66-j (net metering for residential solar, farm waste, non-residential solar electric generating systems, micro-combined heat and power generating equipment, fuel cell electric generating equipment, and micro-hydroelectric generating equipment) and the provisions of PSL 66-1 (net metering for residential, farm service and non-residential wind electric generating systems). It would repeal PSL §§ 66-j, 66-k and 66-l and clarify the availability of net metering for all customers with eligible facilities.

Sections 2 of the bill would amend Public Authorities Law ("PAL") §§ 1020-g(h) to conform to the changes made by adding a new PSL § 66-j.

Sections 3 of the bill would PAL § 1020-cc to conform to the changes made by adding a new PSL § 66-j.

Section 4 of the bill would amend Environmental Conservation Law ("ECL") § 19-0921(3) to conform to changes made by repealing PSL § 66-k.

Sections 5 would repeal PAL § 1854(10-a).

Sections 6 of the bill would repeal State Finance Law ("SFL") § 99-g.

Section 7 of the bill would make the bill effective immediately upon enactment into law.

Existing law

PSL §§ 66-j and 66-l provide for net metering of various residential and non-residential solar, wind, farm waste, fuel cell and micro-hydroelectric generating facilities. PAL §§ 1020g(h), 1020-cc require the Long Island Power Authority ("LIPA") to implement programs and policies for net metering consistent with those set forth in PSL §§ 66-j and 66-l.

PSL § 66-k establishes an allowance credit trading/sales system for sulfur dioxide (S02) emission allowances. The provision was never implemented based on federal court rulings that the provision violated the United States Constitution. PAL § 1854(10-a)(a) requires the New York State Energy, Research and Development Authority to administer air pollution mitigation funds and refers to funds collected pursuant to PSL § 66-k. ECL § 19-0921 (3) requires the Department of Environmental Conservation to report to the Legislature any finding that a federal law has been enacted that will result in at least a fifty percent reduction in sulfur dioxide emissions as defined under PSL § 66-k.

Prior legislative history

New proposal.

Statement in support

Net metering allows customers to generate electricity with environmentally friendly sources for their own use and credit their utility bills for any excess electricity delivered to the utilities for use by the general body of customers. In so doing, energy demand on the electric system is reduced and supply augmented. Net metering was first established in New York State for small, residential solar facilities in 1998 with the enactment of PSL §66-j. Since that time, PSL §66-j has been amended numerous times, and PSL §66-1 was added in 2004 (and subsequently amended), to include additional technologies of various sizes, as well as authorizing net metering under for certain non-residential customers. In 2011 alone PSL §§66-j, §66-1, and §1020-g(h) (Chapters 35, 530 and 546 of the Laws of 2011) were amended. As a result, the requirements for the various technologies and customers are inconsistent and difficult to apply equitably,

The bill would address these concerns by merging PSL §§66-j and 66-1 to establish uniform requirements for the various technologies eligible for net metering. The bill would make few substantive changes; rather, it combines the two sections of law to provide consistent requirements for the various eligible technologies. In addition, it is unclear whether net metering would apply to leased facilities; this bill would clarify that customers with eligible

facilities can avail themselves of net metering, regardless of whether the facilities are leased. It would increase the opportunities for net metering, thus providing additional distributed generation and reducing demand on the electric grid. Conforming changes are also proposed for PAL § 1030-g(h), which will provide net metering opportunities for LIPA customers that mirror those for customers served by utilities regulated by the Public Service Commission.

Finally, the bill would repeal PSL §66-k, and make conforming changes to PAL § 1854(10-a)(a) and ECL § 19-0921(3), to address the Court of Appeals for the Second Circuit's decision (Clean Air Markets Group v. Pataki, 194 F.Supp,2d 147, affd 338 F.3d 82 (2002)), finding that PSL §66-k was pre-empted by the federal Clean Air Act.

Budget implications

None.

Effective date

The bill would be effective immediately upon enactment.