NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3768A
SPONSOR: Cusick TITLE OF BILL:
An act to amend the public service law, in relation to net energy meter-
ing for fuel-flexible linear generator electric generating equipment
PURPOSE OR GENERAL IDEA OF BILL:
This bill would provide parity in "net energy metering" for fuel-flexi-
ble linear generators under Public Service Law § 66-j.
SUMMARY OF PROVISIONS:
Sections 1 through 12: Amends the public service law to to provide pari-
ty in net energy metering for fuel-flexible linear generator electric
generating equipment.
Section 13: Is the effective date.
JUSTIFICATION:
In 2019, the New York legislature passed historic climate legislation
aimed at reducing greenhouse gas emissions economy-wide, but especially
from the burning of fossil fuels in the electric generation sector. In
recent years, New York has also focused on bolstering resiliency and
ensuring the push towards a clean energy future includes an electricity
system capable of withstanding extreme weather events and other poten-
tially disruptive events. Because the availability of reliable, resil-
ient, and affordable electric service is critical to the welfare of
citizenry and is central to New York's economy", the State has aggres-
sively pursued a strategy known as "Reforming the Energy Vision" (REV),
through which "New York is actively spurring clean energy innova-
tion...promoting more efficient use of energy, deeper penetration of
renewable energy resources such as wind and solar, and wider deployment
of 'distributed' energy resources, such as micro grids, 'roof-top solar
and other on-site power supplies...." (1) The success of REV will depend
in part upon the right mix of clean energy technologies being available
in order for New York to achieve its ambitious energy goals and this
includes the critical need for distributed energy resources (DERs) that
are clean, fully dispatchable (2), and available for the duration of
potentially prolonged (i.e., multi-day) grid outages. Distributed energy
resources contribute to a more robust electric grid, lower costs for
users, and lower greenhouse gas emissions by offering: (i) a reliable,
resilient power source during outages, running independently from the
grid, (ii) flexible usage to offset ener- gy consumption from the
central grid during peak hours and compensate for renewable energy
sources during non-available hours, (iii) low-emissions energy using a
variety of fuel sources, and (iv) reduced power grid infrastruc-
ture.costs and losses.
One such technology is the fuel-flexible linear generator which,
although bearing several similarities to fuel cells, represents an
entirely new category of power generation. Linear generator technology
uses a novel electromechanical process by which a low-temperature
reaction of air and fuel drives magnets through copper coils to produce
electricity at very' high efficiencies but with near-zero NOx emissions.
Linear generators can run on clean and environmentally friendly fuels,
such as hydrogen and renewable biogas, but also seamlessly transition to
other available fuels if other circumstances require it.
While current law recognizes a wide variety of DERs, including fuel
cells and several other fuel-based technologies, the Public Service Law
does not encompass cutting-edge linear generator technology. This bill
would amend the Public Service Law to cover fuel-flexible linear genera-
tor technology for net metering purposes, allowing customers to benefit
from this promising new source of affordable, clean and fully dispatcha-
ble on-site power generation. Indeed, providing parity for linear gener-
ators will help ensure a more stable, secure, and environmentally
responsible electric grid, and bring New York's ambitious clean energy
and resiliency goals within closer reach. Public Service Law section
66-j is the basis for many other dean energy policies and other technol-
ogies are on list already. The addition of linear generators creates
parity and ensures comparable and equitable regulatory treatment if, and
only if, future policies leverage this comprehensive list. New York has
previously provided parity-recognition for this technology when it added
fuel-flexible linear generators to the list of technologies eligible for
sales tax relief (FY-2017-18 Budget), and most recently, property tax
relief pursuant to Chapter 325 of the Laws of 2018.
PRIOR LEGISLATIVE HISTORY:
2020: A10268 04/08/20 referred to energy; S8203 04/15/20 referred to
energy and telecommunications A10268 05/04/20 amend and recommit to
energy A10268 05/04/20 print number 10268a
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
Immediately.
(1) http:/lwww3.d DS. ny.gov/W/PSCWeb.nsf/
AII/CC4F2EFA3A23551585257DEA007DCFE2?OdenDocument
(2) Dispatchable generation refers to sources of electricity that can be
used on demand, according to market needs, with or without the grid.
Dispatchable generators can adjust their power output according to need,
turn off and on quickly, and provide backup power when the grid is down.
STATE OF NEW YORK
________________________________________________________________________
3768--A
2021-2022 Regular Sessions
IN ASSEMBLY
January 28, 2021
___________
Introduced by M. of A. CUSICK -- read once and referred to the Committee
on Energy -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the public service law, in relation to net energy meter-
ing for fuel-flexible linear generator electric generating equipment
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 2-b of section 2 of the public service law, as
2 amended by chapter 6 of the laws of 2011, is amended to read as follows:
3 2-b. The term "alternate energy production facility," when used in
4 this chapter, includes any solar, wind turbine, fuel cell, fuel-flexible
5 linear generator electric generating equipment, tidal, wave energy,
6 waste management resource recovery, refuse-derived fuel, wood burning
7 facility, or energy storage device utilizing batteries, flow batteries,
8 flywheels or compressed air, together with any related facilities
9 located at the same project site, with an electric generating capacity
10 of up to eighty megawatts, which produces electricity, gas or useful
11 thermal energy.
12 § 2. The section heading of section 66-j of the public service law, as
13 amended by chapter 546 of the laws of 2011, is amended to read as
14 follows:
15 Net energy metering for residential solar, farm waste, non-residential
16 solar electric generating systems, micro-combined heat and power gener-
17 ating equipment, fuel cell electric generating equipment, fuel-flexible
18 linear generator electric generating equipment, and micro-hydroelectric
19 generating equipment.
20 § 3. Subparagraphs (v) and (vi) of paragraph (a) of subdivision 1 of
21 section 66-j of the public service law, subparagraph (v) as separately
22 amended by chapters 530 and 546 of the laws of 2011 and subparagraph
23 (vi) as added by chapter 530 of the laws of 2011, are amended to read as
24 follows:
25 (v) a residential customer of an electric corporation who owns, leases
26 or operates fuel cell generating equipment or fuel-flexible linear
27 generator electric generating equipment located on the customer's prem-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04973-04-1
A. 3768--A 2
1 ises; and (vi) a non-residential customer of an electric corporation who
2 owns, leases or operates fuel cell generating equipment or fuel-flexible
3 linear generator electric generating equipment located and used at the
4 customer's premises;
5 § 4. Paragraph (f) of subdivision 1 of section 66-j of the public
6 service law, as added by chapter 355 of the laws of 2009, is amended to
7 read as follows:
8 (f) "Micro-combined heat and power generating equipment" means an
9 integrated, cogenerating building heating and electrical power gener-
10 ation system, operating on any fuel and of any applicable engine, fuel
11 cell, fuel-flexible linear generator, or other technology, with a rated
12 capacity of at least one kilowatt and not more than ten kilowatts elec-
13 tric and any thermal output that at full load has a design total fuel
14 use efficiency in the production of heat and electricity of not less
15 than eighty percent, and annually produces at least two thousand kilo-
16 watt hours of useful energy in the form of electricity that may work in
17 combination with supplemental or parallel conventional heating systems,
18 that is manufactured, installed and operated in accordance with applica-
19 ble government and industry standards, that is connected to the electric
20 system and operated in conjunction with an electric corporation's trans-
21 mission and distribution facilities.
22 § 5. Subdivision 1 of section 66-j of the public service law is
23 amended by adding a new paragraph (i) to read as follows:
24 (i) "Fuel-flexible linear generator electric generating equipment" or
25 "fuel-flexible linear generator" means an integrated system consisting
26 of oscillators, cylinders, electricity conversion equipment and associ-
27 ated balance of plant components that directly convert the linear motion
28 of the oscillators into electricity and which has a combined rated
29 capacity of not more than two thousand kilowatts.
30 § 6. Subdivision 2 of section 66-j of the public service law, as
31 amended by chapter 546 of the laws of 2011, is amended to read as
32 follows:
33 2. Interconnection and net energy metering. An electric corporation
34 shall provide for the interconnection of solar and farm waste electric
35 generating equipment, micro-combined heat and power generating equip-
36 ment, fuel cell electric generating equipment, fuel-flexible linear
37 generator electric generating equipment and micro-hydroelectric generat-
38 ing equipment owned or operated by a customer-generator and for net
39 energy metering, provided that the customer-generator enters into a net
40 energy metering contract with the corporation or complies with the
41 corporation's net energy metering schedule and complies with standards
42 and requirements established under this section.
43 § 7. Subparagraph (iii) of paragraph (a) of subdivision 3 of section
44 66-j of the public service law, as amended by chapter 546 of the laws of
45 2011, is amended to read as follows:
46 (iii) Each electric corporation shall make such contract and schedule
47 available to customer-generators on a first come, first served basis,
48 until the total rated generating capacity for solar and farm waste elec-
49 tric generating equipment, micro-combined heat and power generating
50 equipment, fuel cell electric generating equipment, fuel-flexible linear
51 generator electric generating equipment and micro-hydroelectric generat-
52 ing equipment owned, leased or operated by customer-generators in the
53 corporation's service area is equivalent to one percent of the corpo-
54 ration's electric demand for the year two thousand five, as determined
55 by the department.
A. 3768--A 3
1 § 8. Paragraph (c) of subdivision 3 of section 66-j of the public
2 service law, as amended by chapter 546 of the laws of 2011, subparagraph
3 (iii) as amended by chapter 494 of the laws of 2014, is amended to read
4 as follows:
5 (c) In the event that the electric corporation determines that it is
6 necessary to install a dedicated transformer or transformers, or other
7 equipment to protect the safety and adequacy of electric service
8 provided to other customers, a customer-generator shall pay the electric
9 corporation's actual costs of installing the transformer or transfor-
10 mers, or other equipment:
11 (i) In the case of a customer-generator who owns or operates solar
12 electric generating equipment, micro-combined heat and power generating
13 equipment, fuel cell electric generating equipment, fuel-flexible linear
14 generator electric generating equipment or micro-hydroelectric generat-
15 ing equipment located and used at his or her residence, or a non-resi-
16 dential customer-generator who owns or operates solar electric generat-
17 ing equipment with a rated capacity of not more than twenty-five
18 kilowatts, up to a maximum amount of three hundred fifty dollars;
19 (ii) In the case of a customer-generator who owns or operates farm
20 waste electric generating equipment located and used at his or her "farm
21 operation," up to a total amount of five thousand dollars per "farm
22 operation"; and
23 (iii) In the case of a non-residential customer-generator who owns or
24 operates solar electric generating equipment or fuel cell electric
25 generating equipment or fuel-flexible linear generator electric generat-
26 ing equipment or micro-hydroelectric generating equipment or farm waste
27 generating equipment as described in subparagraph (ix) of paragraph (a)
28 of subdivision one of this section, with a rated capacity of more than
29 twenty-five kilowatts located and used at its premises, such cost shall
30 be as determined by the electric corporation subject to review, upon the
31 request of such customer-generator, by the department.
32 § 9. Paragraph (g) of subdivision 3 of section 66-j of the public
33 service law, as added by chapter 200 of the laws of 2013, is amended to
34 read as follows:
35 (g) A customer who owns or operates a farm operation as such term is
36 defined in subdivision eleven of section three hundred one of the agri-
37 culture and markets law, or a non-residential customer-generator as
38 defined by subparagraph (viii) of paragraph (a) of subdivision one of
39 this section that locates fuel cell electric generating equipment or
40 fuel-flexible linear generator electric generating equipment with a net
41 energy meter on property owned or leased by such customer-generator may
42 designate all or a portion of the net metering credits generated by such
43 equipment to meters at any property owned or leased by such customer-
44 generator within the service territory of the same electric corporation
45 to which the customer-generator's net energy meters are interconnected
46 and being within the same load zone as determined by the location based
47 marginal price as of the date of initial request by the customer-genera-
48 tor to conduct net metering. The electric corporation will credit the
49 accounts of the customer by applying any credits to the highest use
50 meter first, then subsequent highest use meters until all such credits
51 are attributed to the customer. Any excess credits shall be carried over
52 to the following month.
53 § 10. Paragraph (b) of subdivision 4 of section 66-j of the public
54 service law, as amended by chapter 494 of the laws of 2014, is amended
55 to read as follows:
A. 3768--A 4
1 (b) In the event that the amount of electricity produced by a custom-
2 er-generator during the billing period exceeds the amount of electricity
3 used by the customer-generator, the corporation shall apply a credit to
4 the next bill for service to the customer-generator for the net elec-
5 tricity provided at the same rate per kilowatt hour applicable to
6 service provided to other customers in the same service class which do
7 not generate electricity onsite, except for micro-combined heat and
8 power or fuel cell or fuel-flexible linear generator customer-generators
9 or farm waste generating equipment customer-generators as described in
10 subparagraph (ix) of paragraph (a) of subdivision one of this section,
11 who will be credited at the corporation's avoided costs. The avoided
12 cost credit provided to micro-combined heat and power or fuel cell or
13 fuel-flexible linear generator customer-generators or farm waste gener-
14 ating equipment customer-generators as described in subparagraph (ix) of
15 paragraph (a) of subdivision one of this section shall be treated for
16 ratemaking purposes as a purchase of electricity in the market that is
17 includable in commodity costs.
18 § 11. Paragraph (a) of subdivision 5 of section 66-j of the public
19 service law, as amended by chapter 546 of the laws of 2011, is amended
20 to read as follows:
21 (a) On or before three months after the effective date of this
22 section, each electric corporation shall establish standards that are
23 necessary for net energy metering and the interconnection of residential
24 solar or farm waste electric generating equipment, micro-combined heat
25 and power generating equipment and fuel cell electric generating equip-
26 ment, fuel-flexible linear generator electric generating equipment and
27 micro-hydroelectric generating equipment to its system and that the
28 commission shall determine are necessary for safe and adequate service
29 and further the public policy set forth in this section. Such standards
30 may include but shall not be limited to:
31 (i) equipment necessary to isolate automatically the residential
32 solar, farm waste, micro-combined heat and power and fuel cell electric
33 generating system and fuel-flexible linear generator electric generating
34 equipment and micro-hydroelectric generating equipment from the utility
35 system for voltage and frequency deviations; and
36 (ii) a manual lockable disconnect switch provided by the customer-gen-
37 erator which shall be located on the outside of the customer's premises
38 and externally accessible for the purpose of isolating the residential
39 solar and farm waste electric generating equipment and micro-hydroelec-
40 tric generating equipment.
41 § 12. Subparagraph (i) of paragraph (b) of subdivision 5 of section
42 66-j of the public service law, as amended by chapter 546 of the laws of
43 2011, is amended to read as follows:
44 (i) In the case of a customer-generator who owns or operates solar
45 electric generating equipment located and used at his or her residence;
46 an electric corporation may not require a customer-generator to comply
47 with additional safety or performance standards, perform or pay for
48 additional tests, or purchase additional liability insurance provided
49 that the residential solar or farm waste electric generating equipment,
50 micro-combined heat and power generating equipment, fuel cell electric
51 generating equipment, fuel-flexible linear generator electric generating
52 equipment or micro-hydroelectric generating equipment meets the safety
53 standards established pursuant to this paragraph.
54 § 13. This act shall take effect immediately.
