Contact Information:

Division of Air Resources
625 Broadway
2nd Floor
Albany, NY 12233-3250

(518) 402-8403

Or view the Department's
Website

 

Relevant State Sites:

New York State Public Service Commission

NY State Board on Electrical Generation Siting and the Environment

New York Air Emissions Regulations

New York State Energy Research And Development Authority (NYSERDA)

Northeast CHP Application Center

 

Major Utilities:

Niagra Mohawk Power

Consolidated Edison

Long Island Power Authority

New York Power Authority

Orange & Rockland

Rochester Gas & Electric

NYSEG

 

Specific Issues:

EMISSIONS REGULATIONS

GUIDE TO FEDERAL REGULATIONS

SITING REGULATIONS

BUILDING, ZONING
AND FIRE CODES

INTERCONNECTION REQUIREMENTS

EXIT FEES

STANDBY RATES

REPORTING REQUIREMENTS

ECONOMIC INCENTIVES

 

 

WHAT'S NEW:

(10/08)
New York has not taken any recent action on their DG proposal, Part 222.

(5/08)
New York plans on publishing their DG proposal, Part 222, in the state register on June 2, 2008. Then the proposal is scheduled to go before the New York Environmental Board on September 16, 2008, and is expected to become effective on December 19, 2008. Key adoption dates can be found here.

AIR EMISSIONS REGULATIONS:

Air Quality Status

The state is located in the Ozone Transport Region (OTR) Regarding the 8-hour ozone standard, there are 17 areas under Subpart 1, and 13 moderate nonattainment areas. There are 10 areas under nonattainment for PM-2.5, and one area in moderate nonattainment for PM-10.
EPA's Nonattainment Areas

Major Source Threshold

In the OTR a potential to emit 50 tpy or more of VOC's or 100 tpy of NOx. In severe nonattainment areas a potential to emit 25 tpy or more of NOx or VOC's. For CO, in moderate nonattainment areas a potential to emit 50 tpy or more per year. For PM-10, in moderate nonattainment areas, a potential to emit 100 tpy classifies a source as major.

Minor Source Permitting Exemption

Based on size and fuel type. In general, emissions of any criteria pollutants from major stationary sources less than 2.5 tpy are exempt from obtaining a permit. Engines 200 hp and less are also exempt.

Minor Source Treatment

Opacity, PM-10 and sulfur limits

Emergency Generating Limits

A unit can operate for up to 500 hours per year during emergencies, routine maintenance, and routine exercising.

DE MINIMIS EXEMPTIONS

To be exempted from permitting, a source must be an engine powered by diesel or natural gas that is smaller than 200 bhp in severe ozone nonattainment areas and 400 hp in all other areas. Any gasoline powered internal combustion engine with a mechanical power rating of less than 50 bhp is also exempt. Stationary or portable combustion equipment less than 10 MMBtu/hr burning fossil fuels other than coal and coal and wood fired stationary combustion units with a maximum heat input less than 1 MMBtu/hr are also exempted. Gas turbines with a heat input at peak load less than 10 MMBtu/hr. Combustion equipment that commenced operation prior to 6/9/1989 with a maximum heat input of less than 20 MMBtu/hr, burning fossil fuels other than coal is exempt as well if located outside of any severe ozone nonattainment areas. State notification is not required to take this exemption, however operating and emissions records must be kept.

MINOR SOURCE PERMITTING

If a source wishes to avoid major source permitting it must take a limit that includes a fuel or hourly operating limit to ensure the source stays minor. Sources that cap emissions at less than 50% of major source thresholds can obtain a Registration Certificate, which requires a one page application and does not require specific conditions. These sources must also have emissions of below 5 tons of a single HAP, 12.5 tons or any combination of HAPs, 50% of any lesser threshold for a single HAP that the administrator may establish by rule , or 5 tons of VOC for sources wishing to avoid additional requirements. The unit must maintain emission records and the certificate is valid until emissions exceed 50% or the unit is modified. Registration applications must be submitted at least 30 days prior to undertaking the activity proposed for registration and the Department will notify the applicant on the acceptability of the registration within 30 days. Sources that limit emissions to below the major source threshold, but above 50% of that threshold must obtain a State-facility permit. The permit will limit hourly operation or annual emissions, but no other controls will be required. All sources (regardless of permit type) will be subject to an opacity limit of 20%, a PM limit of 0.1 lb/MMBtu and a fuel sulfur limit ranging from 0.2%-2% depending on the source's location (see Subpart 225-1 Fuel Composition and Use, http://www.dec.ny.gov/regs/4225.html). In addition, it is likely that source's will have to complete an environmental impact assessment of some kind.

New York has also proposed a new DG rule, Part 222. This rule, would apply to any stationary internal combustion engine of either the reciprocating or rotary type used to generate electricity, including emergency engines. Certain NOx, PM, and CO emissions limits would apply beginning in 2009. The proposal is discussed in more detail under the “What’s New” section above, and can also be found here.

MAJOR NSR/PSD PERMITTING

The state is located in the OTR which means that only 100 tons of NOx or 50 tpy of VOC's triggers NSR. In the severe nonattainment areas a potential to emit 25 tons of NOx or VOCs triggers NSR.

TREATMENT OF EMERGENCY ENGINES

A unit can operate for up to 500 hours per year during emergencies, for routine maintenance, and routine exercising (i.e., test firing the engine for one hour a week to ensure reliability).

SITING REQUIREMENTS FOR NON-UTILITY GENERATORS:

Article X expired on January 1, 2003. This Article outlined application procedures for units with a capacity of 80 MW or more. Now owners of EGU's must obtain all appropriate local and state permits and approvals. A system owner must also undergo environmental review subject to the State Environmental Quality Review Act (Article 8 of the Environmental Conservation Law). If system owners are part of an electric corporation then they must obtain a certificate of public convenience and necessity (CPCN), pursuant to Section 68 of the Public Service Law. In recent years, attention has turned towards reinstating Article X. In 2007, both Governor at the time, Eliot Spitzer and New York City mayor Michael Bloomberg pledged for the passage of a new statewide power siting law, similar to Article X, which expired in 2003. A factsheet on Article X released by former Governor Spitzer in early 2008 can be found here. In 2008, Governor David Patterson issued Executive Order No 2. creating a new energy board. The board is expected to issue legislative proposals on what needs to be done to meet growing energy demand and may issue a proposal related to a new version of Article X( more information can also be found here). See the following New York State Board on Electric Generation Siting and the Environment website for more information on the siting process.

BUILDING, ZONING AND FIRE CODES:

Building Codes: New York enforces the 2007 Building Code of New York State. It is based on the 2003 IECC with some exceptions.

Energy Codes: New York enforces the 2007 Energy Conservation Construction Code of New York State. Commercial building must meet either the prescriptive requirements of Chapter 8 of this code, OR conform to ASHRAE 90.1-2004. [1]

Fire Codes: New York enforces the 2007 Fire Code of New York State. It is based on the 2003 IFC with some exceptions.

Zoning: Zoning and planning happens at the local level. Check with each jurisdiction regarding their zoning codes.

Resources (information may not be as current as provided above)

A general overview of each state’s enacted codes can be found HERE.

The International Code Council Adoption page gives state-by-state adoption status of specific ICC codes, as well as information about code adoption by some municipal governments within that state.

Information about energy codes can be found at the DOE’s Building Codes for Energy Efficiency page or at the Building Codes Assistance Project.

INTERCONNECTION REQUIREMENTS:

The New York Public Service Commission (PSC) has Standard Interconnection Requirements (SIR) for systems with a generating capacity between 300 kW and 2 MW. The SIR include simplified rules for small systems that qualify for net metering, an 11-step procedure that covers initial inquiry to final utility acceptance of interconnection, and standard contract and application forms. The SIR apply to all of New York’s investor-owned utilities.

A $350 application fee is required for all systems with a nameplate rating exceeding 15kW. The fee is non-refundable, except it will be refunded to net-metering customer generators unless applied to the cost of installing a dedicated transformer. If the project proceeds to completion the fee will be applied to the utility’s cost of interconnection.

For more information consult the SIR, the PSC, or your electricity generation and transmission utility.

New York State Department of Public Service
Agency Building 3, Empire State Plaza
Albany, NY 12223

Mike Worden

Phone: (518) 486-2498
Fax: (518) 473-2838

michael_worden@dps.state.ny.us

Jason Pause

Phone: (518) 486-2889
Fax: (518) 473-2838

jason_pause@dps.state.ny.us

EXIT FEES:

A single utility (Niagara Mohawk) in the state of New York has been given authority by the PSC to assess an exit fee upon customers who exit the grid. See Niagara Mohawk Power Corporation, P.S.C. Tariff No. 207 Electricity, section 52 (Leaves Nos. 71 - Z13 through 71 - Z15), also see the language below.

There was no formal state legislation that brought about restructuring of the electric industry. The State PSC implemented rules that led to restructuring and in the comments on these rules the PSC states that exit fees would be prohibited. However, an exception was made for Niagara Mohawk to discourage total bypass of the Company's retail distribution services and charges where such bypass is not economic from society's standpoint and to prevent the shifting of the Company's Transition Costs to other stakeholders that would occur in such circumstances. The exit fee does not apply if a self-generating customer completely isolates itself from the Niagara Mohawk system or if its electricity is supplied by an on-site third party that installed its generating capacity after January 1, 2000 and serves only a single customer. If a third party elects to be connected to Niagara Mohawk's system, they must deliver excess energy to the grid in addition to entering into an agreement under S.C. No. 7, Niagara Mohawk's standby tariff for retail service. A third party's failure to pay the standby tariff will result in the collection of a lump sum payment of transition costs.

Rule 1.48: ELECTRICALLY ISOLATE

Separation of electrical points of contact where interconnection may occur, if (a) such separation is at least 100 feet from any other interconnected electrical service of such customer, or (b) the disconnected isolated service is not within the same building structure as any other interconnected electrical service of such customer and not housed within a common enclosure with other interconnected breakers and/or fuses of such customer.

P.S.C. No. 207 Rule 52. LUMP SUM PAYMENT OF TRANSITION COSTS BY CUSTOMERS TOTALLY BYPASSING THE COMPANY'S RETAIL DISTRIBUTION SYSTEM

52.3 APPLICABILITY

The Lump Sum Recovery of Transition Costs authorized by this Rule 52 shall apply to customers and locations in the Company's service territory served under Schedules P.S.C. No. 207 Electricity and P.S.C. No. 214 Electricity on or after April 6, 1998 which thereafter receive electric service which bypasses the Company's retail distribution system and Municipal Utilities that serve such customers and locations as set forth below. This Rule 52 is not applicable to any customer that electrically isolates its load(s) from the transmission and distribution systems of the Company and all other electric utilities and independent power producers (other than the customer itself) as specified in Rule 1.48. Rule 52 shall not apply to a customer's premises which is disconnected from the Niagara Mohawk system when the customer's electricity is either supplied by the customer or by a third party who is also disconnected from Niagara Mohawk's system with all of its generating capacity installed after January 1, 2002, located on or immediately adjacent to the customer's premises and used exclusively to serve that single customer, even if the customer's premises is located within 100 feet of the Niagara Mohawk system.

Rule 52 shall not apply when the customer disconnects from the Niagara Mohawk system and is connected to a third party owning generation located on or immediately adjacent to the customer's premises who is connected to the Niagara Mohawk system with all of its generating capacity installed after January 1, 2002 and whose generating capacity is used to serve only one retail customer at that location with any excess electricity being delivered over Niagara Mohawk's system, even if that customer's premises is located within 100 feet of the Niagara Mohawk system, as long as the third party generator pays the charges under S.C.No. 7, Niagara Mohawk's standby tariff for retail service. In the event that the third party generator fails to agree to pay the standby tariff the Lump Sum Contribution towards the Company's Transition Costs will be assessed as follows.



52.4 LUMP SUM TRANSITION COST CALCULATION METHODOLOGY

The Company shall use a "revenues lost" methodology similar to that proposed by the FERC in Order No. 888 to determine the Lump Sum Contribution towards the Company's Transition Costs to be made by a customer or a Municipal Utility. This amount will be calculated on a one-time basis. Adjustments or Credits to reflect the acquisition by sale or condemnation of the Company's facilities, avoided property taxes and avoided operation and maintenance expenses, if applicable will be developed by the Company on a case by case basis. The Company shall entertain levelized annual payments or other options that may be negotiated between the Company and the customer or the Municipal utility subject to adequate security.

The "revenue lost" formula is equal to the net present value (at the Company's weighted average cost of capital) over Y years of: (R-E)

R shall be the annual estimated revenue from the customer or, in the case of a Municipal Utility, all of the customers formerly served by the Company to be served by the Municipal Utility using the bundled price designs contained in the Settlement agreement. There shall be no credit for transmission related revenues, as proposed in FERC Order No. 888, unless the customer (s) will continue to use the Company's transmission system.

E is the Company's estimate of the annual revenues that it can receive by selling or releasing capacity and associated energy formerly supplied to the customer(s). Consistent with the FERC's Order 888, the customer(s) shall have the option to market a portion of the released capacity and associated energy.

Y is the number of years required for the Company to recover its full strandable costs. Since Y is dependent upon a number of factors, including the timing of the departure, the Company will address Y on a case-by-case basis.

UTILITY STANDBY RATES:

On January 23, 2004, the PSC mandated in Order No. 02-E-0551 that Consolidated Edison (Con Ed), New York State Electric & Gas Corporation (NYSEG), Orange and Rockland Utilities (O&R), Rochester Gas & Electric Corporation (RG&E) and Central Hudson Gas & Electric (Central Hudson) modify their standby service tariffs. This was in response to a July 2003 order that required these five utilities to offer existing on-site generation customers the option of a phase-in to full standby service rates or possible exemption from these rates. Distributed generation with a nameplate rating of no greater than 15% of the customer’s energy demand and “Designated Technology Customers” defined as those with generators that became operational between July 29, 2004 and May 31, 2006 and using either fuel cells, wind, solar thermal PV, sustainable managed biomass, tidal, geothermal, or methane waste; or small efficient CHP of less than 1 MW also qualify for an exemption from standby rates. Designated Technology Customers with generators that become operational after May 31, 2006 are subject to standby rates that are phased-in according to a set schedule –

  • Feb. 1, 2006–Jan. 31, 2007 Otherwise applicable rates
  • Feb. 1, 2007–Jan. 31, 2008 Otherwise applicable rates
  • Feb. 1, 2008–Jan. 31, 2009 Otherwise applicable rates plus 25% of bill differential
  • Feb. 1, 2009–Jan. 31, 2010 Otherwise applicable rates plus 50% of bill differential
  • Feb. 1, 2010–Jan. 31, 2011Otherwise applicable rates plus 75% of bill differential
  • Feb. 1, 2011–Ongoing Standby service rates

Also, existing customers (those onsite generators that took service or began construction prior to 1/31/2003) could select either an eight-year phase-in to the full standby rate or immediate billing of the full standby rate.

Consolidated Edison - Service Classification 14-A.

Niagara Mohawk - Service Classification 7 - standby rate.
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