(REPRINTED WITH ADOPTED AMENDMENTS)
SECOND REPRINT 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 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; and
2-27 (e) Wind.
2-28 2. The term does not include coal, natural gas, oil, propane or any
2-29 other fossil fuel, or nuclear energy.
2-30 Sec. 7. “Renewable energy system” means:
2-31 1. A facility or energy system that uses renewable energy to generate
2-32 electricity;
2-33 2. A solar energy system that reduces the consumption of electricity;
2-34 and
2-35 3. A net metering system used by a customer-generator pursuant to
2-36 NRS 704.766 to 704.775, inclusive, except for a net metering system that
2-37 uses waterpower as its primary source of energy to generate electricity.
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 energy system which qualifies as a renewable
3-34 energy system and which reduces the consumption of electricity, the total
3-35 reduction in the consumption of electricity during each calendar year
3-36 that results from the solar energy system shall be deemed to be electricity
3-37 that the provider generated or acquired from a renewable energy system
3-38 for the purposes of complying with its portfolio standard.
3-39 4. The commission may adopt regulations that establish a system of
3-40 renewable energy credits that may be used by a provider to comply with
3-41 its portfolio standard.
3-42 5. Except as otherwise provided in subsection 6, each provider shall
3-43 comply with its portfolio standard during each calendar year.
3-44 6. If, during any calendar year, a provider is unable to comply with
3-45 its portfolio standard through the generation of electricity from its own
3-46 renewable energy systems or, if applicable, through the use of renewable
3-47 energy credits, the provider shall take actions to acquire electricity from
3-48 renewable energy systems owned, operated or controlled by other parties.
3-49 The actions taken by the provider must include making requests for
4-1 proposals or taking other appropriate actions to solicit and enter into
4-2 contracts with other parties. If, based upon the responses to the actions
4-3 taken by the provider, the commission determines that there is not or will
4-4 not be a sufficient supply of electricity from such renewable energy
4-5 systems made available to the provider during a calendar year, the
4-6 commission shall exempt the provider, for that calendar year, from the
4-7 remaining requirements of its portfolio standard or from any appropriate
4-8 portion thereof, as determined by the commission.
4-9 Sec. 10. 1. Each provider of electric service shall submit to the
4-10 commission an annual report that provides information relating to the
4-11 actions taken by the provider to comply with its portfolio standard.
4-12 2. Each provider shall submit the annual report to the commission
4-13 after the end of each calendar year and within the time prescribed by the
4-14 commission. The report must be submitted in a format approved by the
4-15 commission.
4-16 3. The commission may adopt regulations that require providers to
4-17 submit to the commission additional reports during each calendar year.
4-18 4. Each annual report and each additional report must include clear
4-19 and concise information that sets forth:
4-20 (a) The amount of electricity which the provider generated or
4-21 acquired from renewable energy systems during the reporting period
4-22 and, if applicable, the amount of renewable energy credits that the
4-23 provider acquired, sold or traded during the reporting period to comply
4-24 with its portfolio standard;
4-25 (b) The capacity of each renewable energy system owned, operated or
4-26 controlled by the provider, the total amount of electricity generated by
4-27 each such system during the reporting period and the percentage of that
4-28 total amount which was generated directly from renewable energy;
4-29 (c) Whether, during the reporting period, the provider began
4-30 construction on, acquired or placed into operation any renewable energy
4-31 system and, if so, the date of any such event; and
4-32 (d) Any other information that the commission by regulation may
4-33 deem relevant.
4-34 Sec. 10.5. “Biomass” has the meaning ascribed to it in section 3 of
4-35 this act.
4-36 Sec. 11. 1. “Renewable energy” means:
4-37 (a) Biomass;
4-38 (b) Hydrogen;
4-39 (c) Geothermal energy;
4-40 (d) Solar energy;
4-41 (e) Waterpower; and
4-42 (f) Wind.
4-43 2. The term does not include coal, natural gas, oil, propane or any
4-44 other fossil fuel, or nuclear energy.
4-45 Sec. 12. NRS 704.743 is hereby amended to read as follows:
4-46 704.743 1. A utility which supplies electricity in this state may apply
4-47 to the commission for authority to charge, as part of a program of optional
4-48 pricing, a higher rate for electricity that is [derived] generated from
4-49 renewable energy . [resources.]
5-1 2. The program [must] may provide the customers of the utility with
5-2 the option of paying a higher rate for electricity to support the increased
5-3 use by the utility of renewable energy [resources] in the [production]
5-4 generation of electricity.
5-5 3. As used in this section [, “renewable energy resources” means
5-6 resources from which electricity is produced, but which are not consumed
5-7 or combusted and are] :
5-8 (a) “Biomass” has the meaning ascribed to it in section 3 of this act.
5-9 (b) “Renewable energy” means a source of energy that occurs
5-10 naturally or is regenerated [,] naturally, including, without limitation:
5-11 [(a)] (1) Wind;
5-12 [(b)] (2) Solar energy; [and
5-13 (c)] (3) Geothermal energy [.] ;
5-14 (4) Biomass;
5-15 (5) Hydrogen; and
5-16 (6) Waterpower.
5-17 The term does not include coal, natural gas, oil, propane or any other
5-18 fossil fuel, or nuclear energy.
5-19 Sec. 13. NRS 704.767 is hereby amended to read as follows:
5-20 704.767 As used in NRS [704.767] 704.766 to 704.775, inclusive,
5-21 unless the context otherwise requires, the words and terms defined in NRS
5-22 704.768 to 704.772, inclusive, and sections 10.5 and 11 of this act have
5-23 the meanings ascribed to them in those sections.
5-24 Sec. 14. NRS 704.771 is hereby amended to read as follows:
5-25 704.771 “Net metering system” means a facility or energy system for
5-26 the [production of electrical energy] generation of electricity that:
5-27 1. Uses [wind or solar] renewable energy as its primary source of [fuel;
5-28 2. Has a generating capacity of not more than 10 kilowatts;
5-29 3.] energy to generate electricity;
5-30 2. Is located on the customer-generator’s premises;
5-31 [4.] 3. Operates in parallel with the utility’s transmission and
5-32 distribution facilities; and
5-33 [5.] 4. Is intended primarily to offset part or all of the customer-
5-34 generator’s requirements for electricity.
5-35 Sec. 15. NRS 231.064 is hereby amended to read as follows:
5-36 231.064 In addition to its other duties, the commission on economic
5-37 development shall:
5-38 1. Investigate and study conditions affecting Nevada business, industry
5-39 and commerce, and engage in technical studies, scientific investigations,
5-40 statistical research and educational activities necessary or useful for the
5-41 proper execution of the function of the division of economic development
5-42 in promoting and developing Nevada business, industry and commerce,
5-43 both within and outside the state.
5-44 2. Conduct or encourage research designed to further new and more
5-45 extensive uses of the natural and other resources of the state and designed
5-46 to develop new products and industrial processes.
5-47 3. Serve as a center of public information for the State of Nevada by
5-48 answering general inquiries concerning the resources and economic,
6-1 residential and recreational advantages of this state and by furnishing
6-2 information and data on these and related subjects.
6-3 4. Prepare and publish pamphlets and other descriptive material
6-4 designed to promote industrial development in Nevada, including a
6-5 regularly revised industrial directory for the state.
6-6 5. Plan and develop an effective service for business information, both
6-7 for the direct assistance of business and industry of the state and for the
6-8 encouragement of business and industry outside the state to use economic
6-9 facilities within the state, including readily accessible information on state
6-10 and local taxes, local zoning regulations and environmental standards, the
6-11 availability and cost of real estate, labor, energy, transportation and
6-12 occupational education and related subjects.
6-13 6. To the extent practicable, serve as a center of information
6-14 concerning electric generating plants and facilities that a utility or other
6-15 entity proposes to construct or locate in this state, and disseminate that
6-16 information to counties whose population is less than 40,000 and to cities
6-17 in those counties. Information provided pursuant to this subsection must
6-18 include, to the extent that the commission is able to obtain such
6-19 information from the utility or other entity:
6-20 (a) The size and scope of the proposed electric generating plant or
6-21 facility and any needs that must be addressed with respect to the
6-22 proposed plant or facility, including, without limitation, proximity to
6-23 water, proximity to lines for the transmission of electricity and other
6-24 geographical considerations;
6-25 (b) Characteristics that the utility or other entity has determined to be
6-26 necessary or desirable with respect to any site where the proposed plant
6-27 or facility will be located;
6-28 (c) Potential sites, if any, that the utility or other entity has identified
6-29 as likely to be suitable for the proposed plant or facility; and
6-30 (d) Any other factors considered relevant by the utility or other entity
6-31 in determining the site on which the proposed plant or facility will be
6-32 constructed or located.
6-33 Sec. 16. NRS 338.190 is hereby amended to read as follows:
6-34 338.190 1. Before it begins to construct or renovate any public
6-35 building which is larger than [20,000] 6,000 square feet, each agency of the
6-36 state or a political subdivision, district, authority, board or public
6-37 corporation of the state shall obtain a detailed analysis of the cost of
6-38 operating and maintaining the building for its expected useful life.
6-39 2. The analysis must [identify] :
6-40 (a) Identify the measures for:
6-41 [(a)] (1) Conservation of energy; [and
6-42 (b)] (2) Cogeneration; and
6-43 (3) Use of types of energy [which] , other than nuclear energy, that
6-44 are alternatives to fossil fuels, [such as] including, without limitation,
6-45 biomass, hydrogen, waterpower, active and passive applications of solar
6-46 energy, wind and geothermal energy,
6-47 which [can] could feasibly be included in the building in its construction or
6-48 renovation.
7-1 (b) For each measure that is identified pursuant to paragraph (a),
7-2 include an estimate of the time required before any savings in energy
7-3 expected to be realized from including the measure in the construction or
7-4 renovation of the building will offset the cost of including the measure in
7-5 the construction or renovation of the building.
7-6 3. The agency of government which proposes to build or renovate [a
7-7 building must] the building shall consider the results of the analysis
7-8 required by this section in deciding upon the type of construction and the
7-9 components and systems , if any, which will be included in the building.
7-10 4. This section applies to any public building or renovation of a public
7-11 building, the designing of which begins on or after July 1, [1981.] 2001.
7-12 5. As used in this section, “cogeneration” means the combined
7-13 generation by a facility or energy system of:
7-14 (a) Electrical or mechanical power; and
7-15 (b) Steam or other forms of energy, including, without limitation,
7-16 heat, that are used for commercial or industrial purposes or for purposes
7-17 of heating or cooling.
7-18 Sec. 17. Chapter 361 of NRS is hereby amended by adding thereto a
7-19 new section to read as follows:
7-20 1. If a person intends to use or uses real property or personal
7-21 property located in this state as a facility or energy system for the
7-22 generation of electricity from renewable energy, the person may apply to
7-23 the commission on economic development pursuant to this section for a
7-24 partial abatement from the taxes imposed by this chapter.
7-25 2. The commission on economic development shall approve an
7-26 application for a partial abatement pursuant to this section if the
7-27 commission determines that the facility or energy system has not
7-28 previously been allowed an exemption or partial abatement from the
7-29 taxes imposed by this chapter.
7-30 3. If the commission on economic development approves an
7-31 application for a partial abatement pursuant to this section:
7-32 (a) The partial abatement applies only to the facility or energy system.
7-33 (b) The partial abatement is:
7-34 (1) For a period of 10 consecutive years, beginning on or after
7-35 July 1, 2001; and
7-36 (2) For an amount equal to 50 percent of the taxes imposed by this
7-37 chapter on the facility or energy system for each year of that period.
7-38 (c) During the period of the partial abatement, the facility or energy
7-39 system is not entitled to an exemption or partial abatement from the taxes
7-40 imposed by this chapter pursuant to any other specific statute.
7-41 (d) The executive director of the commission on economic
7-42 development shall notify the county assessor of each county in which the
7-43 facility or energy system is located of the approval of the partial
7-44 abatement, the date on which the partial abatement begins, and the
7-45 duration and the percentage of the partial abatement. The executive
7-46 director shall, on or before April 15 of each year, advise the county
7-47 assessor of each county in which the facility or energy system is located
7-48 as to whether the facility or energy system is entitled to the partial
7-49 abatement in the next succeeding fiscal year.
8-1 4. As used in this section:
8-2 (a) “Biomass” has the meaning ascribed to it in section 3 of this act.
8-3 (b) “Facility or energy system for the generation of electricity from
8-4 renewable energy” and “facility or energy system” mean a facility or
8-5 energy system that:
8-6 (1) Uses renewable energy as its primary source of energy to
8-7 generate electricity; and
8-8 (2) Is not located on residential property.
8-9 The term includes all the equipment in the facility and all the
8-10 components of the energy system that are used to collect and store the
8-11 renewable energy and to convert the renewable energy into electricity.
8-12 (c) “Renewable energy” means:
8-13 (1) Biomass;
8-14 (2) Hydrogen;
8-15 (3) Geothermal energy;
8-16 (4) Solar energy;
8-17 (5) Waterpower; and
8-18 (6) Wind.
8-19 The term does not include coal, natural gas, oil, propane or any other
8-20 fossil fuel, or nuclear energy.
8-21 Sec. 18. NRS 704.989 is hereby repealed.
8-22 Sec. 19. This act becomes effective on July 1, 2001.
8-23 TEXT OF REPEALED SECTION
8-24 704.989 Renewable energy resources: Portfolio standards; report;
8-25 exceptions.
8-26 1. The commission shall establish portfolio standards for domestic
8-27 energy that set forth the minimum percentage of the total amount of
8-28 electricity sold by an electric utility to its retail customers in this state
8-29 during each calendar year that must be derived from renewable energy
8-30 resources. The portfolio standards must:
8-31 (a) On January 1, 2001, be set at two-tenths of 1 percent of the total
8-32 amount of electricity sold by the electric utility to its retail customers in
8-33 this state during the immediately preceding calendar year.
8-34 (b) On January 1 of each successive odd-numbered year, be increased
8-35 by two-tenths of 1 percent of the total amount of electricity sold by the
8-36 electric utility to its retail customers in this state during the immediately
8-37 preceding calendar year until the portfolio standards reach a total of 1
8-38 percent of the total amount of electricity sold by the electric utility to its
8-39 retail customers in this state during the immediately preceding calendar
8-40 year.
8-41 (c) Be derived from not less than 50 percent renewable energy
8-42 resources.
8-43 (d) Be derived from not less than 50 percent solar renewable energy
8-44 systems.
8-45 (e) Be based on renewable energy credits, if applicable.
9-1 2. Each electric utility shall comply with the portfolio standards
9-2 established by the commission pursuant to this section. At the end of each
9-3 calendar year, each electric utility shall submit a report, in a format
9-4 approved by the commission, of the quantity of renewable energy and
9-5 credits, if applicable, that the electric utility generated, purchased, sold and
9-6 traded to meet the portfolio standards.
9-7 3. In establishing the portfolio standards pursuant to this section, the
9-8 commission may establish a system of credits pursuant to which an
9-9 electric utility may comply with the provisions of this section. A system of
9-10 credits must provide that:
9-11 (a) Credits are issued for renewable energy resources for each kilowatt
9-12 hour of energy which it produces; and
9-13 (b) Holders of credits may trade or sell the credits to other parties.
9-14 4. For the purposes of this section, if, on January 1, 1997, at least 9
9-15 percent of the total amount of electricity sold by an electric utility to its
9-16 retail customers in this state during the immediately preceding calendar
9-17 year was derived from renewable energy resources, the electric utility shall
9-18 be deemed to be in compliance until January 1, 2005, with the portfolio
9-19 standards established by the commission pursuant to this section. Between
9-20 January 1, 2005, and December 31, 2009, such an electric utility shall
9-21 have one-half of 1 percent of the total amount of electricity sold to its
9-22 retail customers in this state, increased in annual increments of one-tenth
9-23 of 1 percent during each calendar year of that period, derived from solar
9-24 energy resources for full compliance with the portfolio standards
9-25 established by the commission pursuant to this section.
9-26 5. In addition to the report required by subsection 2, each electric
9-27 utility shall submit a report, in a format approved by the commission , that
9-28 provides information relating to the compliance by the electric utility with
9-29 the requirements of this section. Such reports must be made at least
9-30 annually, unless the commission by regulation determines that such
9-31 reports must be made more frequently than annually, and must include
9-32 clear and concise information that sets forth:
9-33 (a) If the electric utility installed a renewable energy system during the
9-34 period for which the report is being made, the date of installation;
9-35 (b) The capacity of renewable energy systems of the electric utility;
9-36 (c) The amount of production of energy from the renewable energy
9-37 systems;
9-38 (d) The portion of the production of energy that is directly derived from
9-39 renewable energy resources;
9-40 (e) The quantity of energy from renewable energy systems that is
9-41 transmitted or distributed, or both, to retail customers in this state by the
9-42 electric utility; and
9-43 (f) Such other information that the commission by regulation may deem
9-44 relevant.
9-45 6. The provisions of this section do not apply to:
9-46 (a) Rural electric cooperatives established pursuant to chapter 81 of
9-47 NRS;
9-48 (b) General improvement districts established pursuant to chapter 318
9-49 of NRS; or
10-1 (c) Utilities established pursuant to chapter 709 or 710 of NRS.
10-2 7. As used in this section:
10-3 (a) “Electric utility” has the meaning ascribed to it in section 19 of this
10-4 act.
10-5 (b) “Renewable energy resources” means wind, solar, geothermal and
10-6 biomass energy resources that are naturally regenerated.
10-7 (c) “Renewable energy system” means an energy system that utilizes
10-8 renewable energy resources to produce electricity or solar thermal energy
10-9 systems that reduce the consumption of electricity that was installed and
10-10 commenced operations after July 1, 1997.
10-11 H