(REPRINTED WITH ADOPTED AMENDMENTS)
FIRST REPRINTA.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 renewable 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 Sec. 1. Chapter 704 of NRS is hereby amended by adding thereto the
1-2 provisions set forth as sections 2 to 10, inclusive, of this act.
1-3 Sec. 2. As used in sections 2 to 10, inclusive, of this act, unless the
1-4 context otherwise requires, the words and terms defined in sections 3 to
1-5 8, inclusive, of this act have the meanings ascribed to them in those
1-6 sections.
1-7 Sec. 3. “Biomass” means any organic matter that is available on a
1-8 renewable basis, including, without limitation:
1-9 1. Agricultural crops and agricultural wastes and residues;
1-10 2. Wood and wood wastes and residues;
1-11 3. Animal wastes;
1-12 4. Municipal wastes; and
1-13 5. Aquatic plants.
2-1 Sec. 4. “Portfolio standard” means a portfolio standard for
2-2 renewable energy established by the commission pursuant to section 9 of
2-3 this act.
2-4 Sec. 5. 1. “Provider of electric service” and “provider” mean any
2-5 person or entity that is in the business of selling electricity to retail
2-6 customers in this state, regardless of whether the person or entity is
2-7 otherwise subject to regulation by the commission.
2-8 2. The term does not include:
2-9 (a) This state or an agency or instrumentality of this state.
2-10 (b) A rural electric cooperative established pursuant to chapter 81 of
2-11 NRS.
2-12 (c) A general improvement district established pursuant to chapter
2-13 318 of NRS.
2-14 (d) A utility established pursuant to chapter 709 or 710 of NRS.
2-15 (e) A cooperative association, nonprofit corporation, nonprofit
2-16 association or provider of electric service which is declared to be a public
2-17 utility pursuant to NRS 704.673 and which provides service only to its
2-18 members.
2-19 (f) A landlord of a mobile home park or owner of a company town
2-20 who is subject to any of the provisions of NRS 704.905 to 704.960,
2-21 inclusive.
2-22 Sec. 6. 1. “Renewable energy” means:
2-23 (a) Biomass;
2-24 (b) Hydrogen;
2-25 (c) Geothermal energy;
2-26 (d) Solar energy;
2-27 (e) Waterpower; and
2-28 (f) Wind.
2-29 2. The term does not include coal, natural gas, oil, propane or any
2-30 other fossil fuel, or nuclear energy.
2-31 Sec. 7. “Renewable energy system” means:
2-32 1. A facility or energy system that uses renewable energy to generate
2-33 electricity;
2-34 2. A solar thermal energy system that reduces the consumption of
2-35 electricity; and
2-36 3. A net metering system used by a customer-generator pursuant to
2-37 NRS 704.766 to 704.775, inclusive.
2-38 Sec. 8. 1. “Retail customer” means a customer who purchases
2-39 electricity at retail.
2-40 2. The term includes, without limitation:
2-41 (a) This state, a political subdivision of this state or an agency or
2-42 instrumentality of this state or political subdivision of this state when it
2-43 purchases electricity at retail; and
2-44 (b) A landlord of a mobile home park or owner of a company town
2-45 who is subject to any of the provisions of NRS 704.905 to 704.960,
2-46 inclusive.
2-47 Sec. 9. 1. For each provider of electric service, the commission
2-48 shall establish a portfolio standard for renewable energy. The portfolio
3-1 standard must require each provider to generate or acquire electricity
3-2 from renewable energy systems in an amount that is:
3-3 (a) For calendar years 2003 and 2004, not less than 5 percent of the
3-4 total amount of electricity sold by the provider to its retail customers in
3-5 this state during that calendar year.
3-6 (b) For calendar years 2005 and 2006, not less than 7 percent of the
3-7 total amount of electricity sold by the provider to its retail customers in
3-8 this state during that calendar year.
3-9 (c) For calendar years 2007 and 2008, not less than 9 percent of the
3-10 total amount of electricity sold by the provider to its retail customers in
3-11 this state during that calendar year.
3-12 (d) For calendar years 2009 and 2010, not less than 11 percent of the
3-13 total amount of electricity sold by the provider to its retail customers in
3-14 this state during that calendar year.
3-15 (e) For calendar years 2011 and 2012, not less than 13 percent of the
3-16 total amount of electricity sold by the provider to its retail customers in
3-17 this state during that calendar year.
3-18 (f) For calendar year 2013 and for each calendar year thereafter, not
3-19 less than 15 percent of the total amount of electricity sold by the provider
3-20 to its retail customers in this state during that calendar year.
3-21 2. In addition to the requirements set forth in subsection 1, the
3-22 portfolio standard for each provider must require that:
3-23 (a) Of the total amount of electricity that the provider is required to
3-24 generate or acquire from renewable energy systems during each calendar
3-25 year, not less than 10 percent of that amount must be generated or
3-26 acquired from solar renewable energy systems.
3-27 (b) If the provider acquires electricity from a renewable energy system
3-28 pursuant to a contract with another party, the term of the contract must
3-29 be not less than 10 years, unless the other party agrees to a contract with
3-30 a shorter term.
3-31 3. If, for the benefit of one or more of its retail customers in this
3-32 state, the provider has subsidized, in whole or in part, the acquisition or
3-33 installation of a solar thermal energy system which qualifies as a
3-34 renewable energy system and which reduces the consumption of
3-35 electricity, the total reduction in the consumption of electricity during
3-36 each calendar year that results from the solar thermal energy system
3-37 shall be deemed to be electricity that the provider generated or acquired
3-38 from a renewable energy system for the purposes of complying with its
3-39 portfolio standard.
3-40 4. The commission may adopt regulations that establish a system of
3-41 renewable energy credits that may be used by a provider to comply with
3-42 its portfolio standard.
3-43 5. Except as otherwise provided in subsection 6, each provider shall
3-44 comply with its portfolio standard during each calendar year.
3-45 6. If, during any calendar year, a provider is unable to comply with
3-46 its portfolio standard through the generation of electricity from its own
3-47 renewable energy systems or, if applicable, through the use of renewable
3-48 energy credits, the provider shall take actions to acquire electricity from
3-49 renewable energy systems owned, operated or controlled by other parties.
4-1 The actions taken by the provider must include making requests for
4-2 proposals or taking other appropriate actions to solicit and enter into
4-3 contracts with other parties. If, based upon the responses to the actions
4-4 taken by the provider, the commission determines that there is not or will
4-5 not be a sufficient supply of electricity from such renewable energy
4-6 systems made available to the provider during a calendar year, the
4-7 commission shall exempt the provider, for that calendar year, from the
4-8 remaining requirements of its portfolio standard or from any appropriate
4-9 portion thereof, as determined by the commission.
4-10 Sec. 10. 1. Each provider of electric service shall submit to the
4-11 commission an annual report that provides information relating to the
4-12 actions taken by the provider to comply with its portfolio standard.
4-13 2. Each provider shall submit the annual report to the commission
4-14 after the end of each calendar year and within the time prescribed by the
4-15 commission. The report must be submitted in a format approved by the
4-16 commission.
4-17 3. The commission may adopt regulations that require providers to
4-18 submit to the commission additional reports during each calendar year.
4-19 4. Each annual report and each additional report must include clear
4-20 and concise information that sets forth:
4-21 (a) The amount of electricity which the provider generated or
4-22 acquired from renewable energy systems during the reporting period
4-23 and, if applicable, the amount of renewable energy credits that the
4-24 provider acquired, sold or traded during the reporting period to comply
4-25 with its portfolio standard;
4-26 (b) The capacity of each renewable energy system owned, operated or
4-27 controlled by the provider, the total amount of electricity generated by
4-28 each such system during the reporting period and the percentage of that
4-29 total amount which was generated directly from renewable energy;
4-30 (c) Whether, during the reporting period, the provider began
4-31 construction on, acquired or placed into operation any renewable energy
4-32 system and, if so, the date of any such event; and
4-33 (d) Any other information that the commission by regulation may
4-34 deem relevant.
4-35 Sec. 11. “Renewable energy” has the meaning ascribed to it in
4-36 section 6 of this act.
4-37 Sec. 12. NRS 704.743 is hereby amended to read as follows:
4-38 704.743 1. A utility which supplies electricity in this state may apply
4-39 to the commission for authority to charge, as part of a program of optional
4-40 pricing, a higher rate for electricity that is [derived] generated from
4-41 renewable energy . [resources.]
4-42 2. The program [must] may provide the customers of the utility with
4-43 the option of paying a higher rate for electricity to support the increased
4-44 use by the utility of renewable energy [resources] in the [production]
4-45 generation of electricity.
4-46 3. As used in this section [, “renewable energy resources” means
4-47 resources from which electricity is produced, but which are not consumed
4-48 or combusted and are] :
4-49 (a) “Biomass” has the meaning ascribed to it in section 3 of this act.
5-1 (b) “Renewable energy” means a source of energy that occurs
5-2 naturally or is regenerated [,] naturally, including, without limitation:
5-3 [(a)] (1) Wind;
5-4 [(b)] (2) Solar energy; [and
5-5 (c)] (3) Geothermal energy [.] ;
5-6 (4) Biomass;
5-7 (5) Hydrogen; and
5-8 (6) Waterpower.
5-9 The term does not include coal, natural gas, oil, propane or any other
5-10 fossil fuel, or nuclear energy.
5-11 Sec. 13. NRS 704.767 is hereby amended to read as follows:
5-12 704.767 As used in NRS [704.767] 704.766 to 704.775, inclusive,
5-13 unless the context otherwise requires, the words and terms defined in NRS
5-14 704.768 to 704.772, inclusive, and section 11 of this act have the
5-15 meanings ascribed to them in those sections.
5-16 Sec. 14. NRS 704.771 is hereby amended to read as follows:
5-17 704.771 “Net metering system” means a facility or energy system for
5-18 the [production of electrical energy] generation of electricity that:
5-19 1. Uses [wind or solar] renewable energy as its primary source of [fuel;
5-20 2. Has a generating capacity of not more than 10 kilowatts;
5-21 3.] energy to generate electricity;
5-22 2. Is located on the customer-generator’s premises;
5-23 [4.] 3. Operates in parallel with the utility’s transmission and
5-24 distribution facilities; and
5-25 [5.] 4. Is intended primarily to offset part or all of the customer-
5-26 generator’s requirements for electricity.
5-27 Sec. 15. NRS 231.064 is hereby amended to read as follows:
5-28 231.064 In addition to its other duties, the commission on economic
5-29 development shall:
5-30 1. Investigate and study conditions affecting Nevada business, industry
5-31 and commerce, and engage in technical studies, scientific investigations,
5-32 statistical research and educational activities necessary or useful for the
5-33 proper execution of the function of the division of economic development
5-34 in promoting and developing Nevada business, industry and commerce,
5-35 both within and outside the state.
5-36 2. Conduct or encourage research designed to further new and more
5-37 extensive uses of the natural and other resources of the state and designed
5-38 to develop new products and industrial processes.
5-39 3. Serve as a center of public information for the State of Nevada by
5-40 answering general inquiries concerning the resources and economic,
5-41 residential and recreational advantages of this state and by furnishing
5-42 information and data on these and related subjects.
5-43 4. Prepare and publish pamphlets and other descriptive material
5-44 designed to promote industrial development in Nevada, including a
5-45 regularly revised industrial directory for the state.
5-46 5. Plan and develop an effective service for business information, both
5-47 for the direct assistance of business and industry of the state and for the
5-48 encouragement of business and industry outside the state to use economic
5-49 facilities within the state, including readily accessible information on state
6-1 and local taxes, local zoning regulations and environmental standards, the
6-2 availability and cost of real estate, labor, energy, transportation and
6-3 occupational education and related subjects.
6-4 6. To the extent practicable, serve as a center of information
6-5 concerning electric generating plants and facilities that a utility or other
6-6 entity proposes to construct or locate in this state, and disseminate that
6-7 information to counties whose population is less than 40,000 and to cities
6-8 in those counties. Information provided pursuant to this subsection must
6-9 include, to the extent that the commission is able to obtain such
6-10 information from the utility or other entity:
6-11 (a) The size and scope of the proposed electric generating plant or
6-12 facility and any needs that must be addressed with respect to the
6-13 proposed plant or facility, including, without limitation, proximity to
6-14 water, proximity to lines for the transmission of electricity and other
6-15 geographical considerations;
6-16 (b) Characteristics that the utility or other entity has determined to be
6-17 necessary or desirable with respect to any site where the proposed plant
6-18 or facility will be located;
6-19 (c) Potential sites, if any, that the utility or other entity has identified
6-20 as likely to be suitable for the proposed plant or facility; and
6-21 (d) Any other factors considered relevant by the utility or other entity
6-22 in determining the site on which the proposed plant or facility will be
6-23 constructed or located.
6-24 Sec. 16. NRS 338.190 is hereby amended to read as follows:
6-25 338.190 1. Before it begins to construct or renovate any public
6-26 building which is larger than [20,000] 6,000 square feet, each agency of the
6-27 state or a political subdivision, district, authority, board or public
6-28 corporation of the state shall obtain a detailed analysis of the cost of
6-29 operating and maintaining the building for its expected useful life.
6-30 2. The analysis must [identify] :
6-31 (a) Identify the measures for:
6-32 [(a)] (1) Conservation of energy; [and
6-33 (b)] (2) Cogeneration; and
6-34 (3) Use of types of energy [which] , other than nuclear energy, that
6-35 are alternatives to fossil fuels, [such as] including, without limitation,
6-36 biomass, hydrogen, waterpower, active and passive applications of solar
6-37 energy, wind and geothermal energy,
6-38 which [can] could feasibly be included in the building in its construction or
6-39 renovation.
6-40 (b) For each measure that is identified pursuant to paragraph (a),
6-41 include an estimate of the time required before any savings in energy
6-42 expected to be realized from including the measure in the construction or
6-43 renovation of the building will offset the cost of including the measure in
6-44 the construction or renovation of the building.
6-45 3. The agency of government which proposes to build or renovate [a
6-46 building must] the building shall consider the results of the analysis
6-47 required by this section in deciding upon the type of construction and the
6-48 components and systems , if any, which will be included in the building.
7-1 4. This section applies to any public building or renovation of a public
7-2 building, the designing of which begins on or after July 1, [1981.] 2001.
7-3 5. As used in this section, “cogeneration” means the combined
7-4 generation by a facility or energy system of:
7-5 (a) Electrical or mechanical power; and
7-6 (b) Steam or other forms of energy, including, without limitation,
7-7 heat, that are used for commercial or industrial purposes or for purposes
7-8 of heating or cooling.
7-9 Sec. 17. NRS 361.0785 is hereby amended to read as follows:
7-10 361.0785 1. Except as otherwise provided in this section, all
7-11 property, both real and personal, is exempt from taxation as set forth in this
7-12 section to the extent that the property is used as a facility or energy system
7-13 for the [production of electrical energy from solar] generation of electricity
7-14 from renewable energy.
7-15 2. Personal property exempted pursuant to subsection 1 may not
7-16 receive an exemption for more than 10 consecutive years.
7-17 3. Real property exempted pursuant to subsection 1 may not receive an
7-18 exemption for more than 20 consecutive years.
7-19 4. The provisions of this section do not apply to:
7-20 (a) Residential property; and
7-21 (b) Property that is used as a facility or energy system for the
7-22 [production of electrical energy from solar] generation of electricity from
7-23 renewable energy before July 1, [1997.] 2001.
7-24 5. As used in this section[, “facility] :
7-25 (a) “Facility or energy system for the [production of electrical energy
7-26 from solar] generation of electricity from renewable energy” means a
7-27 facility [which uses solar] or energy system that uses renewable energy as
7-28 its primary [fuel in the production of] source of energy to generate
7-29 electricity. The term includes all the equipment in the facility and all the
7-30 components of the energy system that are used to collect [,] and store the
7-31 renewable energy and to convert the renewable energy into electricity .
7-32 [the energy derived from solar energy.]
7-33 (b) “Renewable energy” has the meaning ascribed to it in section 6 of
7-34 this act.
7-35 Sec. 18. NRS 704.989 is hereby repealed.
7-36 Sec. 19. This act becomes effective on July 1, 2001.
7-37 TEXT OF REPEALED SECTION
7-38 704.989 Renewable energy resources: Portfolio standards; report;
7-39 exceptions.
7-40 1. The commission shall establish portfolio standards for domestic
7-41 energy that set forth the minimum percentage of the total amount of
7-42 electricity sold by an electric utility to its retail customers in this state
7-43 during each calendar year that must be derived from renewable energy
7-44 resources. The portfolio standards must:
8-1 (a) On January 1, 2001, be set at two-tenths of 1 percent of the total
8-2 amount of electricity sold by the electric utility to its retail customers in
8-3 this state during the immediately preceding calendar year.
8-4 (b) On January 1 of each successive odd-numbered year, be increased
8-5 by two-tenths of 1 percent of the total amount of electricity sold by the
8-6 electric utility to its retail customers in this state during the immediately
8-7 preceding calendar year until the portfolio standards reach a total of 1
8-8 percent of the total amount of electricity sold by the electric utility to its
8-9 retail customers in this state during the immediately preceding calendar
8-10 year.
8-11 (c) Be derived from not less than 50 percent renewable energy
8-12 resources.
8-13 (d) Be derived from not less than 50 percent solar renewable energy
8-14 systems.
8-15 (e) Be based on renewable energy credits, if applicable.
8-16 2. Each electric utility shall comply with the portfolio standards
8-17 established by the commission pursuant to this section. At the end of each
8-18 calendar year, each electric utility shall submit a report, in a format
8-19 approved by the commission, of the quantity of renewable energy and
8-20 credits, if applicable, that the electric utility generated, purchased, sold and
8-21 traded to meet the portfolio standards.
8-22 3. In establishing the portfolio standards pursuant to this section, the
8-23 commission may establish a system of credits pursuant to which an
8-24 electric utility may comply with the provisions of this section. A system of
8-25 credits must provide that:
8-26 (a) Credits are issued for renewable energy resources for each kilowatt
8-27 hour of energy which it produces; and
8-28 (b) Holders of credits may trade or sell the credits to other parties.
8-29 4. For the purposes of this section, if, on January 1, 1997, at least 9
8-30 percent of the total amount of electricity sold by an electric utility to its
8-31 retail customers in this state during the immediately preceding calendar
8-32 year was derived from renewable energy resources, the electric utility shall
8-33 be deemed to be in compliance until January 1, 2005, with the portfolio
8-34 standards established by the commission pursuant to this section. Between
8-35 January 1, 2005, and December 31, 2009, such an electric utility shall
8-36 have one-half of 1 percent of the total amount of electricity sold to its
8-37 retail customers in this state, increased in annual increments of one-tenth
8-38 of 1 percent during each calendar year of that period, derived from solar
8-39 energy resources for full compliance with the portfolio standards
8-40 established by the commission pursuant to this section.
8-41 5. In addition to the report required by subsection 2, each electric
8-42 utility shall submit a report, in a format approved by the commission , that
8-43 provides information relating to the compliance by the electric utility with
8-44 the requirements of this section. Such reports must be made at least
8-45 annually, unless the commission by regulation determines that such
8-46 reports must be made more frequently than annually, and must include
8-47 clear and concise information that sets forth:
8-48 (a) If the electric utility installed a renewable energy system during the
8-49 period for which the report is being made, the date of installation;
9-1 (b) The capacity of renewable energy systems of the electric utility;
9-2 (c) The amount of production of energy from the renewable energy
9-3 systems;
9-4 (d) The portion of the production of energy that is directly derived from
9-5 renewable energy resources;
9-6 (e) The quantity of energy from renewable energy systems that is
9-7 transmitted or distributed, or both, to retail customers in this state by the
9-8 electric utility; and
9-9 (f) Such other information that the commission by regulation may deem
9-10 relevant.
9-11 6. The provisions of this section do not apply to:
9-12 (a) Rural electric cooperatives established pursuant to chapter 81 of
9-13 NRS;
9-14 (b) General improvement districts established pursuant to chapter 318
9-15 of NRS; or
9-16 (c) Utilities established pursuant to chapter 709 or 710 of NRS.
9-17 7. As used in this section:
9-18 (a) “Electric utility” has the meaning ascribed to it in section 19 of this
9-19 act.
9-20 (b) “Renewable energy resources” means wind, solar, geothermal and
9-21 biomass energy resources that are naturally regenerated.
9-22 (c) “Renewable energy system” means an energy system that utilizes
9-23 renewable energy resources to produce electricity or solar thermal energy
9-24 systems that reduce the consumption of electricity that was installed and
9-25 commenced operations after July 1, 1997.
9-26 H