A.B. 418
Assembly Bill No. 418–Assemblymen de Braga, Bache, Dini, Buckley, Giunchigliani, Chowning and Perkins
March 19, 2001
____________
Referred to Select Committee on Energy
SUMMARY—Revises provisions concerning conservation of energy and use of alternative sources of energy. (BDR 58‑1198)
FISCAL NOTE: Effect on Local Government: Yes.
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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).
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1 Section 1. Chapter 704 of NRS is hereby amended by adding thereto a
1-2 new section to read as follows:
1-3 “Biomass” means any organic matter that is available on a renewable
1-4 basis, including, without limitation:
1-5 1. Agricultural crops and agricultural wastes and residues;
1-6 2. Wood and wood wastes and residues;
1-7 3. Animal wastes;
1-8 4. Municipal wastes; and
1-9 5. Aquatic plants.
1-10 Sec. 2. NRS 704.005 is hereby amended to read as follows:
1-11 704.005 As used in this chapter, unless the context otherwise requires,
1-12 the words and terms defined in NRS 704.010 to 704.030, inclusive, and
1-13 section 1 of this act have the meanings ascribed to them in those sections.
2-1 Sec. 3. NRS 704.771 is hereby amended to read as follows:
2-2 704.771 “Net metering system” means a facility for the production of
2-3 electrical energy that:
2-4 1. Uses [wind or solar energy] as its primary source of fuel[;
2-5 2. Has a generating capacity of not more than 10 kilowatts;
2-6 3.] :
2-7 (a) Biomass;
2-8 (b) Geothermal energy;
2-9 (c) Natural gas;
2-10 (d) Propane;
2-11 (e) Solar energy; or
2-12 (f) Wind;
2-13 2. Is located on the customer-generator’s premises;
2-14 [4.] 3. Operates in parallel with the utility’s transmission and
2-15 distribution facilities; and
2-16 [5.] 4. Is intended primarily to offset part or all of the customer-
2-17 generator’s requirements for electricity.
2-18 Sec. 4. NRS 704.989 is hereby amended to read as follows:
2-19 704.989 1. The commission shall establish a portfolio [standards]
2-20 standard for domestic energy that sets forth the minimum percentage of
2-21 the total electricity sold during each calendar year that must be derived
2-22 from renewable energy [resources.] systems. The portfolio [standards]
2-23 standard must:
2-24 (a) Be set at [two-tenths of one] 5 percent of the total amount of
2-25 electricity annually consumed by customers in this state as of [January 1,
2-26 2001.] December 31, 2002.
2-27 (b) Be increased biannually thereafter by [two-tenths of one] 2 percent
2-28 of the total annual electric consumption by the customers until the portfolio
2-29 standard reaches a total of [1] 15 percent of the total amount of electricity
2-30 consumed.
2-31 (c) [Be derived from not less than 50 percent renewable energy
2-32 resources.
2-33 (d)] Be derived from not less than [50] 10 percent solar renewable
2-34 energy systems.
2-35 [(e) Be based on renewable energy credits, if applicable.]
2-36 (d) Provide that if electricity is procured from a renewable energy
2-37 system by a vertically integrated electric utility or an alternative seller
2-38 pursuant to a contract with a third party, the term of the contract must be
2-39 not less than 10 years.
2-40 2. Each vertically integrated electric utility and alternative seller that
2-41 provides electric service in this state shall comply with the portfolio
2-42 standard established by the commission pursuant to this section. At the end
2-43 of each calendar year, each vertically integrated electric utility and
2-44 alternative seller shall submit a report[,] to the commission, in a format
2-45 approved by the commission, [of the quantity of renewable energy and
2-46 credits, if applicable, that the utility or alternative seller generated,
2-47 purchased, sold and traded to meet the standards of the portfolio.
2-48 3. In establishing the portfolio pursuant to this section, the commission
2-49 may establish a system of credits pursuant to which an electric utility and
3-1 alternative seller may comply with the provisions of this section. A system
3-2 of credits must provide that:
3-3 (a) Credits are issued for renewable energy resources for each kilowatt
3-4 hour of energy which it produces; and
3-5 (b) Holders of credits may trade or sell the credits to other parties.
3-6 4. For the purposes of this section, a vertically integrated electric
3-7 utility which, on January 1, 1997, has 9 percent of its electricity consumed
3-8 by its customers served by renewable energy resources shall be deemed to
3-9 be in compliance until January 1, 2005, with the portfolio standards
3-10 established by the commission pursuant to this section. Between January 1,
3-11 2005, and December 31, 2009, such a vertically integrated electric utility
3-12 and its affiliated alternative seller, if any, shall reach a total of one-half of 1
3-13 percent of the amount of electricity consumed by its customers, in annual
3-14 increments of one-tenth of 1 percent, in solar energy resources for full
3-15 compliance with the portfolio standard established by the commission
3-16 pursuant to this section. 5. The electric utility and alternative seller
3-17 shall submit a report to the commission] that provides information relating
3-18 to the compliance by the [vertically integrated] electric utility or alternative
3-19 seller with the requirements of this section. [Such reports must be made at
3-20 least annually, unless the] The commission may, by regulation
3-21 [determines] , determine that such [reports] a report must be made more
3-22 frequently than annually . [, and] The report must include clear and concise
3-23 information that sets forth:
3-24 (a) If the [vertically integrated] electric utility installed a renewable
3-25 energy system during the period for which the report is being made, the
3-26 date of installation;
3-27 (b) The capacity of renewable energy systems of the [vertically
3-28 integrated] electric utility or alternative seller;
3-29 (c) The amount of production of energy from the renewable energy
3-30 systems;
3-31 (d) The portion of the production of energy that is directly derived from
3-32 renewable energy resources;
3-33 (e) The quantity of energy from renewable energy systems that is
3-34 transmitted or distributed, or both, to customers in this state by the
3-35 [vertically integrated] electric utility or alternative seller; and
3-36 (f) Such other information that the commission by regulation may deem
3-37 relevant.
3-38 [6.] 3. Nothing in this section applies to:
3-39 (a) Rural electric cooperatives established pursuant to chapter 81 of
3-40 NRS;
3-41 (b) General improvement districts established pursuant to chapter 318
3-42 of NRS; or
3-43 (c) Utilities established pursuant to chapter 709 or 710 of NRS.
3-44 [7.] 4. As used in this section:
3-45 (a) “Renewable energy resources” means wind, solar, geothermal and
3-46 biomass energy resources in this state that are naturally regenerated.
3-47 (b) “Renewable energy system” means an energy system in this state
3-48 that utilizes renewable energy resources to produce electricity or solar
4-1 thermal energy systems that reduce the consumption of electricity that was
4-2 installed and commenced operations after [July] January 1, 1997.
4-3 Sec. 5. NRS 231.064 is hereby amended to read as follows:
4-4 231.064 In addition to its other duties, the commission on economic
4-5 development shall:
4-6 1. Investigate and study conditions affecting Nevada business, industry
4-7 and commerce, and engage in technical studies, scientific investigations,
4-8 statistical research and educational activities necessary or useful for the
4-9 proper execution of the function of the division in promoting and
4-10 developing Nevada business, industry and commerce, both within and
4-11 outside the state.
4-12 2. Conduct or encourage research designed to further new and more
4-13 extensive uses of the natural and other resources of the state and designed
4-14 to develop new products and industrial processes.
4-15 3. Serve as a center of public information for the State of Nevada by
4-16 answering general inquiries concerning the resources and economic,
4-17 residential and recreational advantages of this state and by furnishing
4-18 information and data on these and related subjects.
4-19 4. Prepare and publish pamphlets and other descriptive material
4-20 designed to promote industrial development in Nevada, including a
4-21 regularly revised industrial directory for the state.
4-22 5. Plan and develop an effective service for business information, both
4-23 for the direct assistance of business and industry of the state and for the
4-24 encouragement of business and industry outside the state to use economic
4-25 facilities within the state, including readily accessible information on state
4-26 and local taxes, local zoning regulations and environmental standards, the
4-27 availability and cost of real estate, labor, energy, transportation and
4-28 occupational education and related subjects.
4-29 6. To the extent practicable, serve as a center of information
4-30 concerning plants and other facilities that a utility proposes to construct
4-31 or locate in this state, and disseminate that information to counties
4-32 whose population is less than 40,000 and to cities in those counties.
4-33 Information provided pursuant to this subsection must include, to the
4-34 extent that the commission is able to obtain such information from the
4-35 utility:
4-36 (a) The size and scope of the proposed plant or facility and any needs
4-37 that must be addressed with respect to the proposed plant or facility,
4-38 including, without limitation, proximity to water, proximity to lines for
4-39 the transmission of electricity and other geographical considerations;
4-40 (b) Characteristics that the utility has determined to be necessary or
4-41 desirable with respect to any site where the proposed plant or facility will
4-42 be located;
4-43 (c) Potential sites, if any, that the utility has identified as likely to be
4-44 suitable for the proposed plant or facility; and
4-45 (d) Any other factors considered relevant by the utility in determining
4-46 the site on which the proposed plant or facility will be constructed or
4-47 located.
5-1 Sec. 6. NRS 338.190 is hereby amended to read as follows:
5-2 338.190 1. Before it begins to construct or renovate any public
5-3 building which is larger than [20,000] 6,000 square feet, each agency of the
5-4 state or a political subdivision, district, authority, board or public
5-5 corporation of the state shall obtain a detailed analysis of the cost of
5-6 operating and maintaining the building for its expected useful life.
5-7 2. The analysis must [identify] :
5-8 (a) Identify the measures for:
5-9 [(a)] (1) Conservation of energy; [and
5-10 (b)] (2) Cogeneration; and
5-11 (3) Use of types of energy which are alternatives to fossil fuels, [such
5-12 as] including, without limitation, active and passive applications of solar
5-13 energy, wind and geothermal energy,
5-14 which can be included in the building in its construction or renovation.
5-15 (b) For each measure that is identified pursuant to paragraph (a),
5-16 include an estimate of the time required before any savings in energy
5-17 expected to be realized from including the measure in the construction or
5-18 renovation of the building will offset the cost of including the measure in
5-19 the construction or renovation of the building.
5-20 3. The agency of government which proposes to build or renovate a
5-21 building must [consider] :
5-22 (a) Consider the results of the analysis required by this section in
5-23 deciding upon the type of construction and the components and systems
5-24 which will be included in the building[.] ; and
5-25 (b) Include in the construction or renovation of the building each
5-26 measure identified pursuant to paragraph (a) of subsection 2 for which
5-27 the estimated time to offset the cost of including the measure in the
5-28 construction or renovation of the building, as determined pursuant to
5-29 paragraph (b) of subsection 2, is 8 years or less.
5-30 4. This section applies to any public building or renovation of a public
5-31 building, the designing of which begins on or after July 1, [1981.] 2001.
5-32 5. As used in this section, “cogeneration” means the combined
5-33 generation by a facility of:
5-34 (a) Electrical or mechanical power; and
5-35 (b) Steam or other forms of energy, including, without limitation,
5-36 heat, that are used for commercial or industrial purposes or for purposes
5-37 of heating or cooling.
5-38 Sec. 7. NRS 361.0785 is hereby amended to read as follows:
5-39 361.0785 1. Except as otherwise provided in this section, all
5-40 property, both real and personal, is exempt from taxation as set forth in this
5-41 section to the extent that the property is used as a facility for the production
5-42 of [electrical energy from solar] electricity from alternative sources of
5-43 energy.
5-44 2. Personal property exempted pursuant to subsection 1 may not
5-45 receive an exemption for more than 10 consecutive years.
5-46 3. Real property exempted pursuant to subsection 1 may not receive an
5-47 exemption for more than 20 consecutive years.
5-48 4. The provisions of this section do not apply to:
5-49 (a) Residential property; and
6-1 (b) Property that is used as a facility for the production of [electrical
6-2 energy from solar] electricity from alternative sources of energy before
6-3 July 1, [1997.] 2001.
6-4 5. As used in this section[, “facility] :
6-5 (a) “Biomass” has the meaning ascribed to it in section 1 of this act.
6-6 (b) “Facility for the production of [electrical energy from solar]
6-7 electricity from alternative sources of energy” means a facility which uses
6-8 [solar energy] as its primary fuel in the production of electricity[.] :
6-9 (1) Biomass;
6-10 (2) Geothermal energy;
6-11 (3) Solar energy; or
6-12 (4) Wind.
6-13 The term includes all the equipment in the facility used to collect, store and
6-14 convert into electricity the energy derived from [solar] alternative sources
6-15 of energy.
6-16 Sec. 8. This act becomes effective on July 1, 2001.
6-17 H