EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 704A of NRS is hereby amended by adding

1-2 thereto the provisions set forth as sections 2 to 9, inclusive, of this act.

1-3 Sec. 2. As used in sections 2 to 9, inclusive, of this act, unless the

1-4 context otherwise requires, the words and terms defined in sections 3, 4

1-5 and 5 of this act have the meanings ascribed to them in those sections.

1-6 Sec. 3. "Electric facility" means any facility used or intended to be

1-8 of 25,000 volts.

1-9 Sec. 4. "Fund" means a fund established by a governing body

1-10 pursuant to section 6 of this act to finance the construction of new

1-11 underground electric facilities or the conversion of existing overhead

1-12 electric facilities to underground electric facilities.

2-1 Sec. 5. "Public utility" means any person, including a corporation,

2-4 electric facilities.

2-5 Sec. 6. 1. A governing body may, by resolution, establish a fund to

2-6 finance the construction of new underground electric facilities or the

2-7 conversion of existing overhead electric facilities to underground electric

2-8 facilities.

2-9 2. Upon the establishment of such a fund, the governing body shall,

2-10 by resolution, determine the amount to be assessed to finance the

2-11 construction of new underground electric facilities or the conversion of

2-12 existing overhead electric facilities. The assessment may include, without

2-13 limitation:

2-14 (a) A surcharge to be included on the electric bill of each customer of

2-15 the public utility located within the jurisdiction of the governing body.

2-16 The surcharge must be a percentage of the gross bill of the customer and

2-17 may be adjusted based on the type of customer, including industrial,

2-18 commercial, residential or any other special category of customer, as

2-19 agreed upon by the governing body and the public utility.

2-20 Notwithstanding any specific statute to the contrary, the amount of the

2-21 surcharge must not be included as revenue of the public utility in

2-22 determining the amount of any fee payable by the public utility to the

2-23 governing body.

2-24 (b) A fee to be included on the tax bill for all real property that is

2-25 located within the jurisdiction of the governing body.

2-26 3. The resolution must specify the amount of the assessment and the

2-27 manner in which it will be assessed.

2-28 4. Not later than 180 days after the date on which a governing body

2-29 establishes a fund pursuant to this section, the governing body may

2-30 request the public utility providing electric service to customers located in

2-31 the jurisdiction of the governing body to contribute to the fund an

2-32 amount not to exceed 1 percent of the net revenues of the public utility

2-33 collected from such customers during the fiscal year immediately

2-34 preceding the date of the request. A public utility is not required to make

2-35 any contribution pursuant to such a request.

2-36 Sec. 7. 1. All money derived from an assessment or contribution

2-37 made pursuant to section 6 of this act must be deposited in the fund. The

2-38 money in the fund must be used only to finance the construction of new

2-39 underground electric facilities or the conversion of existing overhead

2-40 electric facilities. The governing body shall determine:

2-41 (a) Whether a project that proposes the construction of new

2-42 underground electric facilities or the conversion of existing overhead

2-43 electric facilities qualifies for financing from the fund; and

3-1 (b) Whether to use the money in the fund to pay for the proposed

3-2 construction or conversion.

3-3 2. Except as otherwise provided in section 9 of this act, any money

3-4 remaining in the fund at the end of a fiscal year does not revert to the

3-5 general fund of the governing body and must not be transferred to any

3-6 other fund or account of the governing body.

3-7 Sec. 8. A governing body shall not require a public utility to

3-8 construct new underground electric facilities or convert existing

3-9 overhead electric facilities, unless the governing body has established a

3-10 fund pursuant to section 6 of this act and:

3-11 1. The amount in the fund is adequate to finance the entire project

3-12 for the construction or conversion of the electric facilities; or

3-13 2. If the amount in the fund is insufficient to finance the entire

3-14 project for the construction or conversion of the electric facilities:

3-15 (a) The governing body has arranged for the financing of the

3-16 remaining amount needed to finance the entire project; and

3-17 (b) The public utility has agreed to accept the terms and conditions of

3-18 the financing.

3-19 Sec. 9. 1. The governing body may, by resolution, close a fund

3-20 established pursuant to section 6 of this act if:

3-21 (a) The construction of new underground electric facilities or the

3-22 conversion of existing overhead electric facilities has been completed and

3-23 there are no outstanding claims against the fund; or

3-24 (b) The governing body determines not to proceed with the project to

3-25 construct new underground electric facilities or convert existing

3-26 overhead electric facilities and the actual construction or conversion has

3-27 not yet begun.

3-28 2. Upon the closing of a fund, all unobligated money in the fund

3-29 reverts to the general fund of the governing body.

3-30 Sec. 10. NRS 704A.050 is hereby amended to read as follows:

3-31 704A.050 "Electric and communication facilities" means any works or

4-1 2. ["Electric] Except as otherwise provided in sections 2 to 9,

4-2 inclusive, of this act, "electric facilities" does not include any facilities

4-3 used or intended to be used for the transmission of electric energy at

4-4 nominal voltages in excess of 25,000 volts or having a circuit capacity in

4-5 excess of 12,000 kilovolt amperes.