A_AB661

2001 REGULAR SESSION (71st) A AB661 744

Amendment No. 744

Assembly Amendment to Assembly Bill No. 661 (BDR 58‑1128)

Proposed by: Select Committee on Energy

Amendment Box: Resolves conflicts with A.B. No. 369 and S.B. No. 203. Makes substantive change.

Resolves Conflicts with: AB369, SB203

Amends: Summary: Title: Preamble: Joint Sponsorship:

Adoption of this amendment will MAINTAIN a 2/3s majority vote requirement for final passage of AB661 (§§ 47, 88).

ASSEMBLY ACTION Initial and Date |SENATE ACTION Initial and Date

Adopted Lost | Adopted Lost

Concurred In Not |Concurred In Not

Receded Not | Receded Not

Amend the bill as a whole by deleting sections 1 through 109 and the text of repealed sections and adding new sections designated sections 1 through 131 and the text of repealed sections, following the enacting clause, to read as follows:

“Section 1. For the purposes of sections 3 to 26, inclusive, of this act, the legislature hereby finds and declares that:

1. A reliable and reasonably priced supply of electricity is critical to the economy of this state and to the health, safety and welfare of the residents of this state;

2. The electric utilities in this state depend on regional energy markets to purchase approximately 50 percent of the electricity needed to serve their customers in this state, and such purchases are often made pursuant to agreements with terms of 1 year or less;

3. The energy markets in the western United States currently are characterized by critical shortages in the supply of electricity and extremely high prices for electricity, both of which are damaging to the strength of the economy of this state and to the well-being of the residents of this state;

4. The residents of this state would benefit from construction of new generation assets in this state and from access to other new electric resources, wherever located, that provide lower-priced electricity;

5. The economic development that would result from construction in this state of new generation assets, supporting gas pipelines and additional infrastructure would be of special benefit to the rural areas of this state where the new generation assets are most likely to be located;

6. During this session, the legislature has considered a number of different but complementary approaches to developing and using new generation assets and other new electric resources and to increasing the supply of reasonably priced electricity in this state;

7. The development and use of new generation assets and other new electric resources by eligible customers would permit the electric utilities in this state to reduce their dependence on purchases of excessively priced electricity from dysfunctional, short-term energy markets and would thereby reduce the average system costs for such electric utilities;

8. The development and use of new generation assets and other new electric resources can be encouraged by allowing eligible customers to use their own resources, initiative, expertise and credit to develop, access and enter into agreements for the purchase of electricity from new generation assets and other new electric resources; and

9. To protect the electric utilities in this state and their remaining customers, all transactions proposed by eligible customers pursuant to sections 3 to 26, inclusive, of this act must be carefully reviewed by the public utilities commission of Nevada to ensure that the electric utilities in this state and their remaining customers are not subject to increased costs as a result of the proposed transactions and that the proposed transactions are not otherwise contrary to the public interest.

Sec. 2. Title 58 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 3 to 26, inclusive, of this act.

Sec. 3. As used in this chapter, unless the context otherwise requires, the words and terms defined in sections 4 to 16, inclusive, of this act have the meanings ascribed to them in those sections.

Sec. 4. “Ancillary services” means those generation services that:

1. Are necessary to support the transmission of energy and capacity from resources to loads while maintaining reliable operation of the transmission system of the electric utility; and

2. Are defined and established in applicable transmission tariffs on file with the Federal Energy Regulatory Commission.

Sec. 5. “Calendar quarter” means each period of 3 consecutive calendar months ending on March 31, June 30, September 30 and December 31 in each calendar year.

Sec. 6. “Commission” means the public utilities commission of Nevada.

Sec. 7. 1. “Electric utility” means any public utility or successor in interest that:

(a) Is in the business of providing electric service to customers;

(b) Holds a certificate of public convenience and necessity issued or transferred pursuant to chapter 704 of NRS; and

(c) In the most recently completed calendar year or in any other calendar year within the 7 calendar years immediately preceding the most recently completed calendar year, had a gross operating revenue of $250,000,000 or more in this state.

2. The term does not include a cooperative association, nonprofit corporation, nonprofit association or provider of electric service which is declared to be a public utility pursuant to NRS 704.673 and which provides service only to its members.

Sec. 8. “Electric utility that primarily serves densely populated counties” means an electric utility that, with regard to the provision of electric service, derives more of its annual gross operating revenue in this state from customers located in counties whose population is 400,000 or more than it does from customers located in counties whose population is less than 400,000.

Sec. 9. “Electric utility that primarily serves less densely populated counties” means an electric utility that, with regard to the provision of electric service, derives more of its annual gross operating revenue in this state from customers located in counties whose population is less than 400,000 than it does from customers located in counties whose population is 400,000 or more.

Sec. 10. “Eligible customer” means an end-use customer which is:

1. A nongovernmental commercial or industrial end-use customer that has an average annual load of 1 megawatt or more in the service territory of an electric utility.

2. A governmental entity, including, without limitation, a governmental entity providing educational or health care services, that:

(a) Performs its functions using one or more facilities which are operated under a common budget and common control; and

(b) Has an average annual load of 1 megawatt or more in the service territory of an electric utility.

Sec. 11. “Energy” means electrical energy.

Sec. 12. “Generation asset” means any plant, facility, equipment or system which is located within or outside this state and which converts nonelectrical energy into electrical energy or otherwise produces electrical energy.

Sec. 13. “New electric resource” means:

1. The energy, capacity or ancillary services and any increased or additional energy, capacity or ancillary services which are:

(a) Made available from a generation asset that is not owned by an electric utility or is not subject to contractual commitments to an electric utility that make the energy, capacity or ancillary services from the generation asset unavailable for purchase by an eligible customer; and

(b) Able to be delivered to an eligible customer.

2. Any increased energy, capacity or ancillary services made available from a generation asset pursuant to an agreement described in section 18 of this act.

Sec. 14. “Person” means:

1. A natural person.

2. Any form of business or social organization and any other nongovernmental legal entity, including, without limitation, a corporation, partnership, association, trust or unincorporated organization.

3. A governmental entity other than:

(a) This state or an agency or instrumentality of this state; or

(b) A political subdivision of this state or an agency or instrumentality of a political subdivision of this state.

Sec. 15. “Provider of new electric resources” and “provider” mean a person who makes energy, capacity or ancillary services from a new electric resource available to an eligible customer.

Sec. 16. “Time-of-use meter” means a meter that:

1. Measures and records the electric demand, energy and power factor on 15-minute intervals; and

2. Is suitable for use with an electric demand of 1 megawatt or more.

Sec. 17. 1. The provisions of this chapter do not alter, diminish or otherwise affect any rights or obligations arising under any contract which requires an electric utility to purchase energy, capacity or ancillary services from another party and which exists on the effective date of this act.

2. Each electric utility or its assignee shall comply with the terms of any contract which requires the electric utility or its assignee to purchase energy, capacity or ancillary services from another party and which exists on the effective date of this act.

Sec. 18. 1. Except as otherwise provided in this section, an electric utility may, at its discretion, enter into agreements relating to its generation assets and the energy, capacity or ancillary services provided by its generation assets with one or more other persons who are not electric utilities. Such agreements:

(a) May include, without limitation, agreements to construct or install a new generation asset on real property that is adjacent to an existing generation asset owned by the electric utility; and

(b) May provide for the sharing of available common facilities with the existing generation asset or the reengineering, repowering or expansion of the existing generation asset to generate energy more efficiently and at a lower cost and to make more energy available to customers in this state.

2. Any increased energy, capacity or ancillary services made available from a new generation asset or an existing generation asset pursuant to an agreement described in subsection 1 shall be deemed to be a new electric resource that may be:

(a) Owned by the parties to the agreement who are not electric utilities; and

(b) Used or consumed by such parties for their own purposes or sold by such parties to one or more eligible customers pursuant to the provisions of this chapter.

3. A transaction undertaken pursuant to an agreement described in subsection 1:

(a) Must not impair system reliability or the ability of the electric utility to provide electric service to its customers; and

(b) Must not violate the provisions of sections 8 to 18, inclusive, of Assembly Bill No. 369 of this session.

4. The provisions of this section do not exempt any party to an agreement described in subsection 1 from any applicable statutory or regulatory requirements relating to siting, construction and operation of a generation asset.

5. The commission shall encourage the development of new electric resources and shall not exercise its regulatory authority in a manner that unnecessarily or unreasonably restricts, conditions or discourages any agreement described in subsection 1 that is likely to result in increased energy, capacity or ancillary services from a generation asset or improved or more efficient operation or management of a generation asset.

Sec. 19. 1. Except as otherwise provided in this section, a provider of new electric resources may sell energy, capacity or ancillary services to one or more eligible customers if the eligible customers have been approved to purchase energy, capacity and ancillary services from the provider pursuant to the provisions of sections 20 and 21 of this act.

2. A provider of new electric resources shall not sell energy, capacity or ancillary services to an eligible customer:

(a) Before April 1, 2002, if the eligible customer’s load is in the service territory of an electric utility that primarily serves less densely populated counties;

(b) Before June 1, 2002, if the eligible customer’s load is in the service territory of an electric utility that primarily serves densely populated counties; or

3. A provider of new electric resources that sells energy, capacity or ancillary services to an eligible customer pursuant to the provisions of this chapter:

(a) Does not become and shall not be deemed to be a public utility solely because of that transaction; and

(b) Does not become and shall not be deemed to be subject to the jurisdiction of the commission except as otherwise provided in this chapter or by specific statute.

4. If a provider of new electric resources is not a public utility in this state and is not otherwise authorized by the provisions of a specific statute to sell energy, capacity or ancillary services at retail in this state, the provider shall not sell energy, capacity or ancillary services at retail in this state to a person or entity that is not an eligible customer.

Sec. 20. 1. An eligible customer that is purchasing electric service from an electric utility shall not purchase energy, capacity or ancillary services from a provider of new electric resources and an eligible customer that is purchasing energy, capacity or ancillary services from a provider of new electric resources shall not purchase energy, capacity or ancillary services from another provider unless:

(a) The eligible customer files an application with the commission not later than 180 days before the date on which the eligible customer intends to begin purchasing energy, capacity or ancillary services from the provider; and

(b) The commission approves the application by a written order issued in accordance with the provisions of this section and section 21 of this act.

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The date on which the eligible customer intends to begin purchasing energy, capacity or ancillary services from the provider must not be sooner than the date on which the provider is authorized by section 19 of this act to begin selling energy, capacity or ancillary services to the eligible customer.

2. Except as otherwise provided in subsection 3, each application filed pursuant to this section must include:

(a) Information demonstrating that the person filing the application is an eligible customer;

(b) Information demonstrating that the proposed provider will provide energy, capacity or ancillary services from a new electric resource;

(c) Information concerning the terms and conditions of the proposed transaction that is necessary for the commission to evaluate the impact of the proposed transaction on customers and the public interest, including, without limitation, information concerning the duration of the proposed transaction and the amount of energy, capacity or ancillary services to be purchased from the provider; and

(d) Any other information required pursuant to the regulations adopted by the commission.

3. Except as otherwise provided in section 21 of this act, the commission shall not require the eligible customer or provider to disclose:

(a) The price that is being paid by the eligible customer to purchase energy, capacity or ancillary services from the provider; or

(b) Any other terms or conditions of the proposed transaction that the commission determines are commercially sensitive.

4. The commission shall provide public notice of the application of the eligible customer and an opportunity for a hearing on the application in a manner that is consistent with the provisions of NRS 703.320 and the regulations adopted by the commission.

5. The commission shall approve the application of the eligible customer unless the commission finds that the proposed transaction:

(a) Will be contrary to the public interest; or

(b) Does not comply with the provisions of section 21 of this act, if those provisions apply to the proposed transaction.

6. In determining whether the proposed transaction will be contrary to the public interest, the commission shall consider, without limitation:

(a) Whether the electric utility that has been providing electric service to the eligible customer will be burdened by increased costs as a result of the proposed transaction or whether any remaining customer of the electric utility will pay increased costs for electric service as a result of the proposed transaction;

(b) Whether the proposed transaction will impair system reliability or the ability of the electric utility to provide electric service to its remaining customers; and

7. If the commission approves the application of the eligible customer:

(a) The eligible customer shall not begin purchasing energy, capacity or ancillary services from the provider pursuant to the proposed transaction sooner than 180 days after the date on which the application was filed; and

(b) The commission shall order such terms, conditions and payments as the commission deems necessary and appropriate to ensure that the proposed transaction will not be contrary to the public interest. Such terms, conditions and payments:

(1) Must be fair and nondiscriminatory as between the eligible customer and the remaining customers of the electric utility; and

(2) Must include, without limitation, payment by the eligible customer to the electric utility of the eligible customer’s load-share portion of any unrecovered balance in the deferred accounts of the electric utility.

8. If the commission does not enter a final order on the application of the eligible customer within 90 days after the date on which the application was filed with the commission:

(a) The application shall be deemed to be approved by the commission; and

(b) The eligible customer shall not begin purchasing energy, capacity or ancillary services from the provider pursuant to the proposed transaction sooner than 180 days after the date on which the application was filed.

Sec. 21. 1. For eligible customers whose loads are in the service territory of an electric utility that primarily serves densely populated counties:

(a) The amount of energy that each such eligible customer purchases from providers of new electric resources before July 1, 2003, must not exceed 80 percent of the load of the eligible customer; and

(b) The aggregate amount of energy that all such eligible customers purchase from providers of new electric resources before July 1, 2003, must not exceed 50 percent of the difference between the existing supply of energy generated in this state that is available to the electric utility and the existing demand for energy in this state that is consumed by the customers of the electric utility, as determined by the commission.

2. An eligible customer that is a nongovernmental commercial or industrial end-use customer whose load is in the service territory of an electric utility that primarily serves densely populated counties shall not purchase energy, capacity or ancillary services from a provider of new electric resources unless, as part of the proposed transaction, the eligible customer agrees to:

(a) Contract with the provider to purchase:

(1) An additional amount of energy which is equal to 10 percent of the total amount of energy that the eligible customer is purchasing for its own use under the proposed transaction and which is purchased at the same price, terms and conditions as the energy purchased by the eligible customer for its own use; and

(2) The capacity and ancillary services associated with the additional amount of energy at the same price, terms and conditions as the capacity and ancillary services purchased by the eligible customer for its own use; and

(b) Offers to assign the rights to the contract to the electric utility for use by the remaining customers of the electric utility.

3. If an eligible customer is subject to the provisions of subsection 2, the eligible customer shall include with its application filed pursuant to section 20 of this act all information concerning the contract offered to the electric utility that is necessary for the commission to determine whether it is in the best interest of the remaining customers of the electric utility for the electric utility to accept the rights to the contract. Such information must include, without limitation, the amount of the energy and capacity to be purchased under the contract, the price of the energy, capacity and ancillary services and the duration of the contract. Information concerning the price of the energy, capacity and ancillary services and any other terms or conditions of the contract that the commission determines are commercially sensitive shall be deemed to be confidential, and the commission shall establish a procedure for protecting such information from disclosure.

4. If the commission determines that the contract:

(a) Is not in the best interest of the remaining customers of the electric utility, the electric utility shall not accept the rights to the contract, and the eligible customer is entitled to all rights to the contract.

(b) Is in the best interest of the remaining customers of the electric utility, the electric utility shall accept the rights to the contract and the eligible customer shall assign all rights to the contract to the electric utility. A contract that is assigned to the electric utility pursuant to this paragraph shall be deemed to be an approved part of the resource plan of the electric utility and a prudent investment, and the electric utility may recover all costs for the energy, capacity and ancillary services acquired pursuant to the contract. To the extent practicable, the commission shall take actions to ensure that the electric utility uses the energy, capacity and ancillary services acquired pursuant to each such contract only for the benefit of the remaining customers of the electric utility that are not eligible customers, with a preference for the remaining customers of the electric utility that are residential customers with small loads.

Sec. 22. 1. If an eligible customer is purchasing energy, capacity or ancillary services from a provider of new electric resources, the eligible customer may, pursuant to tariffs approved by the commission, replace some or all, but not less than all at a single time-of-use meter, of the energy, capacity or ancillary services purchased from the provider of new electric resources with energy, capacity or ancillary services purchased from an electric utility.

2. The tariffs approved by the commission pursuant to this section must include, without limitation:

(a) Provisions requiring the eligible customer to pay any incremental costs that are incurred by the electric utility to provide energy to the eligible customer;

(b) Provisions requiring the eligible customer to provide reasonable and adequate notice to the electric utility;

(c) Provisions establishing minimum terms during which the eligible customer must continue to purchase energy from the electric utility; and

(d) Any other provisions that the commission determines are necessary and reasonable to carry out and enforce the provisions of this section.

Sec. 23. 1. A provider of new electric resources shall not sell energy, capacity or ancillary services to an eligible customer unless the customer has a time-of-use meter installed at the point of delivery of energy to the eligible customer.

2. An electric utility shall install a time-of-use meter at each point of delivery of energy to the eligible customer if the eligible customer does not have a time-of-use meter at that point of delivery. The eligible customer shall pay all costs for the time-of-use meter and for installation of the time-of-use meter by the electric utility.

3. Not more than one person or entity may sell the energy that is delivered to an eligible customer through any one time-of-use meter.

4. The provisions of this section do not prohibit:

(a) An eligible customer from having more than one time-of-use meter installed for the same service location; or

(b) An eligible customer from installing any other meter or equipment that is necessary or appropriate to the transaction with the provider, if such a meter or equipment is otherwise consistent with system reliability.

Sec. 24. 1. An electric utility shall provide all transmission, distribution, metering and other components of electric service that are necessary for a provider of new electric resources to sell energy, capacity and ancillary services to an eligible customer pursuant to the provisions of this chapter. An electric utility shall provide each such component of electric service pursuant to the tariffs and service agreements filed with and approved by the appropriate regulatory authorities having jurisdiction over each such component of electric service.

2. For each such component of electric service that is within the jurisdiction of the commission, the commission shall establish just, reasonable and nondiscriminatory rates.

3. The provisions of this chapter do not enlarge or expand any existing rights under federal law or create any other rights with regard to the transmission system of the electric utility.

4. When providing service pursuant to this chapter, an electric utility is subject to all applicable statutes and regulations of this state and the United States.

Sec. 25. Not later than 30 days after the end of each calendar quarter, the commission shall submit to the legislative commission a written report which summarizes for that calendar quarter:

1. Each application which was filed with the commission pursuant to the provisions of this chapter and which requested approval of a proposed transaction between an eligible customer and a provider of new electric resources;

2. The information that the eligible customer included with the application;

3. The findings of the commission concerning the effect of the proposed transaction on the public interest; and

4. Whether the commission approved the application and, if so, the effective date of the proposed transaction, the terms and conditions of the proposed transaction, and the terms, conditions and payments ordered by the commission.

Sec. 26. The commission shall adopt regulations to carry out and enforce the provisions of this chapter.

Sec. 27. NRS 703.025 is hereby amended to read as follows:

703.025 1. The commission, by majority vote, shall organize the commission into sections, alter the organization of the commission and reassign responsibilities and duties of the sections of the commission as the commission deems necessary to provide:

(a) Advice and guidance to the commission on economic policies relating to utilities under the jurisdiction of the commission, and the regulation of such utilities;

(b) Administrative, technical, legal and support services to the commission; and

(c) For the regulation of utilities governed by the commission and the services offered by such utilities, including, but not limited to, licensing of such utilities and services and the resolution of consumer complaints.

2. The commission shall:

(a) Formulate the policies of the various sections of the commission;

(b) Coordinate the activities of the various sections of the commission;

(c) If customers are authorized by a specific statute to obtain a competitive, discretionary or potentially competitive utility service, take any actions which are consistent with the statute and which are necessary to [encourage and enhance:

(1) A] :

(1) Ensure, before a determination is made to deregulate a particular utility service or market, that a sufficient number of providers of the competitive, discretionary or potentially competitive utility service exist so that customers are able to benefit from the competitive market;

(2) Provide for an orderly and efficient transition from the regulated market to the competitive market and ensure that the transition, when completed, will not unreasonably prejudice or disadvantage any class of customers or any provider of the competitive, discretionary or potentially competitive utility service;

(3) Encourage and enhance the competitive market for the provision of [that] the competitive, discretionary or potentially competitive utility service to customers [in this state; and

(2) The] ; and

(4) Encourage and enhance the reliability and safety of the provision of [that] the competitive, discretionary or potentially competitive utility service [within that competitive market;] to customers; and

(d) Adopt such regulations consistent with law as the commission deems necessary for the operation of the commission and the enforcement of all laws administered by the commission.

3. Before reorganizing the commission, the commission shall submit the plan for reorganization to:

(a) The director of the legislative counsel bureau for transmittal to the appropriate legislative committee and the interim finance committee; and

(b) The director of the department of administration.

Sec. 28. NRS 703.030 is hereby amended to read as follows:

703.030 1. The commission consists of [three] five commissioners appointed by the governor . [for terms of] After the initial terms, the term of each commissioner is 4 years.

2. The governor shall appoint [as members of the commission persons] :

(a) One commissioner to represent the general public.

(b) Four commissioners who have at least 2 years of experience in one or more of the following fields:

[(a)] (1) Accounting.

[(b)] (2) Business administration.

[(c)] (3) Finance or economics.

[(d)] (4) Administrative law.

[(e)] (5) Professional engineering.

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Not more than two of the commissioners appointed pursuant to this paragraph may be from the same field of experience.

3. Not more than [two] three of the commissioners may be [:

(a) Members] members of the same political party.

[(b) From the same field of experience.]

4. A vacancy on the commission must be filled for the remainder of the unexpired term in the same manner as the original appointment.

Sec. 29. NRS 703.070 is hereby amended to read as follows:

703.070 The governor shall designate one of the commissioners to be chairman, whose term as chairman shall be at the pleasure of the governor. [The chairman shall serve as the executive officer of the commission.]

Sec. 30. NRS 703.110 is hereby amended to read as follows:

703.110 1. [The] Except as otherwise provided in subsection 2, the majority of the commissioners have full power to act in all matters within [their jurisdiction.] the jurisdiction of the commission and shall exercise all the powers of the commission.

2. If [two] the majority of the commissioners are disqualified or if there are [two] vacancies within the majority of the commission, the remaining commissioners or, if only one commissioner is remaining, the remaining commissioner [or] has full power to act in all matters within the jurisdiction of the commission and shall exercise all the powers of the commission.

3. Except as otherwise provided in this chapter, all hearings and meetings conducted by the commission must be open to the public.

Sec. 31. NRS 703.130 is hereby amended to read as follows:

703.130 1. The commission shall appoint a deputy commissioner who shall serve in the unclassified service of the state.

2. The commission shall appoint a secretary who shall perform such administrative and other duties as are prescribed by the commission. The commission shall also appoint an assistant secretary.

3. The commission may employ such other clerks, experts or engineers as may be necessary.

4. Except as otherwise provided in this subsection, any person who is employed by the commission in a full-time position that is in the unclassified service of the state and whose aggregate length of service in all positions with the commission exceeds 1 year:

(a) Shall be deemed to be a permanent classified employee of the state pursuant to chapter 284 of NRS exclusively for the purposes of discipline, demotion, suspension and dismissal; and

(b) Must not be disciplined, demoted, suspended or dismissed in a manner that is inconsistent with the provisions of chapter 284 of NRS and the regulations adopted pursuant thereto, as those provisions and regulations are applied to a permanent classified employee of the state.

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The provisions of this subsection do not apply to any person who is serving as a commissioner or deputy commissioner or as a hearing officer or legal counsel for the commission.

5. Except as otherwise provided in subsection [5,] 6, the commission:

(a) May appoint one or more hearing officers for a period specified by the commission to conduct proceedings or hearings that may be conducted by the commission pursuant to chapters 704, 704A, 705, 708 and 711 of NRS [.] and sections 3 to 26, inclusive, of this act.

(b) Shall prescribe by regulation the procedure for appealing a decision of a hearing officer to the commission.

[5.] 6. The commission shall not appoint a hearing officer to conduct proceedings or hearings :

(a) In any matter pending before the commission pursuant to sections 8 to 18, inclusive, of [this act.] Assembly Bill No. 369 of this session; or

(b) In any matter pending before the commission pursuant to NRS 704.070 to 704.110, inclusive, and sections 48 to 52, inclusive, of this act in which an electric utility has filed a general rate application or an application to clear its deferred accounts.

7. As used in this section, “electric utility” has the meaning ascribed to it in section 19 of Assembly Bill No. 369 of this session.

Sec. 32. NRS 703.147 is hereby amended to read as follows:

703.147 1. The public utilities commission regulatory fund is hereby created as a special revenue fund. All money collected by the commission pursuant to law must be deposited in the state treasury for credit to the fund. Money collected [for] by the commission:

(a) For the use of the consumer’s advocate of the bureau of consumer protection in the office of the attorney general must be transferred pursuant to the provisions of subsection 8 of NRS 704.035.

(b) For the use of the task force for renewable energy and energy conservation must be transferred pursuant to the provisions of subsection 5 of section 47 of this act.

2. Money in the fund which belongs to the commission may be used only to defray the costs of:

(a) Maintaining staff and equipment to regulate adequately public utilities and other persons subject to the jurisdiction of the commission.

(b) Participating in all rate cases involving those persons.

(c) Audits, inspections, investigations, publication of notices, reports and retaining consultants connected with that regulation and participation.

(d) The salaries, travel expenses and subsistence allowances of the members of the commission.

3. All claims against the fund must be paid as other claims against the state are paid.

4. The commission must furnish upon request a statement showing the balance remaining in the fund as of the close of the preceding fiscal year.

Sec. 33. NRS 703.150 is hereby amended to read as follows:

703.150 The commission shall [supervise] :

1. Supervise and regulate the operation and maintenance of public utilities and other persons named and defined in chapters 704, 704A and 708 of NRS pursuant to the provisions of those chapters.

2. Carry out the purposes and provisions of sections 3 to 26, inclusive, of this act and any other specific statute relating to the powers and duties of the commission.

Sec. 34. NRS 703.164 is hereby amended to read as follows:

703.164 1. The commission may employ, or retain on a contract basis, legal counsel who shall:

(a) Except as otherwise provided in subsection 2, be counsel and attorney for the commission in all actions, proceedings and hearings.

(b) Prosecute in the name of the [public utilities commission of Nevada] commission all civil actions for the enforcement of chapters 704, 704A, 705 and 708 of NRS and sections 3 to 26, inclusive, of this act and for the recovery of any penalty or forfeiture provided for therein.

(c) Generally aid the commission in the performance of its duties and the enforcement of chapters 704, 704A, 705 and 708 of NRS [.] and sections 3 to 26, inclusive, of this act.

2. Each district attorney shall:

(a) Prosecute any violation of chapter 704, 704A, 705, 708 or 711 of NRS and sections 3 to 26, inclusive, of this act for which a criminal penalty is provided and which occurs in his county.

(b) Aid in any investigation, prosecution, hearing or trial held under the provisions of chapter 704, 704A, 705, 708 or 711 of NRS and sections 3 to 26, inclusive, of this act and, at the request of the commission or its legal counsel, act as counsel and attorney for the commission.

3. The attorney general shall, if the district attorney fails or refuses to do so, prosecute all violations of the laws of this state by public utilities under the jurisdiction of the commission and their officers, agents and employees.

4. The attorney general is not precluded from appearing in or moving to intervene in any action and representing the interest of the State of Nevada in any action in which the commission is a party and is represented by independent counsel.

Sec. 35. NRS 703.197 is hereby amended to read as follows:

703.197 1. The commission may collect fees for the filing of any official document required by this chapter and chapters 704, 704A, 705 and 708 of NRS and sections 3 to 26, inclusive, of this act or by a regulation of the commission.

2. Filing fees may not exceed:

(a) For applications, $200.

(b) For petitions seeking affirmative relief, $200.

(c) For each tariff page which requires public notice and is not attached to an application, $10. If more than one page is filed at one time, the total fee may not exceed the cost of notice and publication.

(d) For all other documents which require public notice, $10.

3. If an application or other document is rejected by the commission because it is inadequate or inappropriate, the filing fee must be returned.

4. The commission may not charge any fee for filing a complaint.

Sec. 36. NRS 703.320 is hereby amended to read as follows:

703.320 1. In any matter pending before the commission, if a hearing is required by a specific statute or is otherwise required by the commission, the commission shall give notice of the pendency of the matter to all persons entitled to notice of the hearing. The commission shall by regulation specify:

(a) The manner of giving notice in each type of proceeding; and

(b) The persons entitled to notice in each type of proceeding.

2. The commission shall not dispense with a hearing [in] :

(a) In any matter pending before the commission pursuant to sections 8 to 18, inclusive, of [this act.] Assembly Bill No. 369 of this session; or

(b) Except as otherwise provided in subsection 4 of NRS 704.100, in any matter pending before the commission pursuant to NRS 704.070 to 704.110, inclusive, and sections 48 to 52, inclusive, of this act in which an electric utility has filed a general rate application or an application to clear its deferred accounts.

3. In any other matter pending before the commission, the commission may dispense with a hearing and act upon the matter pending unless, within 10 days after the date of the notice of pendency, a person entitled to notice of the hearing files with the commission a request that the hearing be held. If such a request for a hearing is filed, the commission shall give at least 10 days’ notice of the hearing.

4. As used in this section, “electric utility” has the meaning ascribed to it in section 19 of Assembly Bill No. 369 of this session.

Sec. 37. NRS 703.374 is hereby amended to read as follows:

703.374 1. A court of competent jurisdiction, after hearing, may issue an injunction suspending or staying any final order of the commission if:

(a) The applicant has filed a motion for a preliminary injunction;

(b) The applicant has served the motion on the commission and other interested parties within 20 days after the rendition of the order on which the complaint is based;

(c) The court finds there is a reasonable likelihood that the applicant will prevail on the merits of the matter and will suffer irreparable injury if injunctive relief is not granted; and

(d) The applicant files a bond or other undertaking to secure the adverse parties in such manner as the court finds sufficient.

2. The decision of the commission on each matter considered shall be deemed reasonable and just until set aside by the court . [, and in] In all actions for an injunction or [otherwise] for any other relief, the burden of proof is upon the party attacking or resisting the order of the commission to show by clear and satisfactory evidence that the order is unlawful [,] or unreasonable . [, as the case may be.]

3. If an injunction is granted by the court and the order complained of is one which [permanently suspends] :

(a) Disapproves a public utility’s proposed changes in a schedule of rates [and charges or a] , or any part thereof , [filed by any public utility] pursuant to NRS 704.070 to 704.110, inclusive, [or which otherwise] and sections 48 to 52, inclusive, of this act; or

(b) Otherwise prevents the proposed changes in the schedule , or any part thereof , from taking effect,

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the public utility complaining may [keep in effect or put] place into effect [, as the case may be, the suspended] the proposed changes in the schedule , or any part thereof , pending final determination by the court having jurisdiction, by filing a bond with the court in such an amount as the court may fix, conditioned upon the refund to persons entitled to the excess amount if the [rate or rates so suspended] proposed changes in the schedule, or any part thereof, are finally determined by the court to be excessive.

Sec. 38. NRS 703.377 is hereby amended to read as follows:

703.377 1. [No] Any certificate of public convenience and necessity, permit or license issued or transferred in accordance with the [terms] provisions of NRS [704.005] 704.001 to 704.751, inclusive, is [either] not a franchise or irrevocable.

2. Upon receipt of a written complaint or on its own motion, the commission may, after investigation and hearing, revoke any certificate, permit or license, [but as to] except that the commission may not revoke the certificate of a public utility [only if] unless the commission has arranged for another public utility to provide the service for which the certificate was granted.

3. [The proceedings thereafter are governed by] If the commission revokes any certificate, permit or license, the person who held the certificate, permit or license may seek judicial review pursuant to the provisions of NRS 703.373 to 703.376, inclusive.

Sec. 39. NRS 703.380 is hereby amended to read as follows:

703.380 1. Unless another penalty is specifically provided, any public utility or any officer, agent or employee of a public utility who:

(a) Violates any of the provisions of this chapter or chapters 704, 705 and 708 of NRS [;] and sections 3 to 26, inclusive, of this act;

(b) Violates any rule or regulation of the commission; or

(c) Fails, neglects or refuses to obey any order of the commission or any order of a court requiring compliance with an order of the commission,

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is liable for a civil penalty not to exceed $1,000 per day for each day of the violation and not to exceed $100,000 for any related series of violations.

2. The amount of any civil penalty to be imposed pursuant to this section, and the propriety of any compromise of a penalty, must be determined by a court of competent jurisdiction upon the complaint of the commission.

3. Subject to the approval of the court, any civil penalty may be compromised by the commission. In determining the amount of the penalty, or the amount agreed upon in compromise, the appropriateness of the penalty to the size of the business of the person charged, the gravity of the violation and the good faith of the person charged in attempting to achieve compliance, after notification of a violation, must be considered.

4. Any penalty assessed pursuant to this section is not a cost of service by the public utility and may not be included in any new application by a public utility for a rate adjustment or rate increase.

Sec. 40. Chapter 704 of NRS is hereby amended by adding thereto the provisions set forth as sections 41 to 52, inclusive, of this act.

Sec. 41. “Biomass” means any organic matter that is available on a renewable basis, including, without limitation:

1. Agricultural crops and agricultural wastes and residues;

2. Wood and wood wastes and residues;

3. Animal wastes;

4. Municipal wastes; and

5. Aquatic plants.

Sec. 42. “Consumer’s advocate” means the consumer’s advocate of the bureau of consumer protection in the office of the attorney general.

Sec. 43. 1. “Renewable energy” means:

(a) Biomass;

(b) Hydrogen;

(d) Solar energy;

(e) Waterpower; and

(f) Wind.

2. The term does not include coal, natural gas, oil, propane or any other fossil fuel, or nuclear energy.

Sec. 44. 1. For the purposes of protecting the health of residential customers who receive gas, water or electricity from public utilities, the commission shall adopt regulations that:

(a) Establish the criteria that will be used to determine when a public utility is required to postpone its termination of utility service to the residence of a residential customer who has failed to pay for such service. Such criteria may be based, in whole or in part, upon the residential customer’s ability to pay.

(b) Require a public utility to postpone its termination of utility service to the residence of a residential customer who has failed to pay for such service if the residential customer satisfies the criteria established by the commission and:

(1) On the date of termination, the residence of the residential customer is located in an area that is experiencing a climatic extreme and the utility service that will be terminated is necessary to control the temperature of the residence of the residential customer; or

(2) Termination of the utility service is reasonably likely to threaten the health of an occupant of the residence of the residential customer.

2. In addition to the regulations adopted pursuant to subsection 1, for the purposes of regulating public utilities that provide gas, water or electricity to landlords who pay for the utility service and who distribute or resell the gas, water or electricity to one or more residential tenants, the commission shall adopt regulations that:

(a) Require a public utility to provide reasonable and adequate notice to each such residential tenant before the public utility terminates utility service because the landlord has failed to pay for such service.

(b) Provide such residential tenants and their occupants with protections that are similar to the protections afforded to residential customers and their occupants pursuant to subsection 1.

(c) Establish procedures and priorities for the resumption of utility service by a public utility after it terminates utility service because the landlord has failed to pay for such service.

(d) Establish any additional protections that the commission determines are necessary to protect such residential tenants for the period before or after a public utility terminates utility service because the landlord has failed to pay for such service.

3. A public utility shall not terminate utility service for gas, water or electricity without complying with the regulations adopted by the commission pursuant to this section.

4. As used in this section:

(a) “Gas” includes, without limitation, liquefied petroleum gas and natural gas.

(b) “Landlord” means a landlord who is subject, in whole or in part, to the provisions of chapter 118A or 118B of NRS.

Sec. 45. 1. If a public utility purchases electricity for resale pursuant to multiple contracts or existing obligations for the purchase of power, the public utility shall, to the extent practicable, ensure that the duration of such contracts or obligations are varied to protect the customers of the public utility from the effects of fluctuations in the price of electricity.

2. In determining whether the purchase of electricity for resale by a public utility is in the public interest pursuant to NRS 704.320, the commission shall consider whether the public utility is taking prudent actions to ensure that the duration of its contracts and obligations for the purchase of power are varied to protect the customers of the public utility from the effects of fluctuations in the price of electricity.

Sec. 46. 1. If any person intends to construct an electric generating unit or increase the generating capacity of an electric generating unit and the commission has jurisdiction concerning the matter, the commission shall consider, in determining whether to grant:

(a) A certificate of public convenience and necessity;

(b) A permit for construction pursuant to NRS 704.820 to 704.900, inclusive; or

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whether the electric generating unit or the increased generating capacity of the electric generating unit will benefit the residents of this state by increasing the quantity of electricity that will be available for purchase in this state.

2. As used in this section:

(a) “Electric generating unit” means an electric generating unit that uses any form of energy to generate electricity.

(b) “Person” means:

(1) A natural person;

(2) Any form of business or social organization and any other nongovernmental legal entity, including, without limitation, a corporation, partnership, association, trust or unincorporated organization;

(3) A government or an agency or instrumentality of a government, including, without limitation, this state or an agency or instrumentality of this state; and

(4) A political subdivision of this state or of any other government or an agency or instrumentality of a political subdivision of this state or of any other government.

Sec. 47. 1. The commission shall levy and collect an assessment from each person who operates a new electric generating unit in this state, whether or not the person or the new electric generating unit is otherwise subject to regulation by the commission.

2. The commission shall levy the assessment not more than once on each new electric generating unit which is capable of being operated independently from any other electric generating unit that is or will be part of or connected to any associated facilities. The commission shall levy the assessment on each new electric generating unit whether or not any other electric generating unit that is or will be part of or connected to any associated facilities has begun commercial operation or has had an assessment levied on it pursuant to this section.

3. The amount of the assessment levied on each new electric generating unit must equal the product obtained by multiplying the maximum generating capacity of the new electric generating unit, as determined by the commission and expressed in megawatts, by the sum of $1,000.

4. Each person who is required to pay the assessment levied on a new electric generating unit shall pay the full assessment to the commission not later than 30 days after the date on which the new electric generating unit begins, in whole or in part, commercial operation.

5. The commission shall, on a quarterly basis, transfer any money collected pursuant to this section to the state treasurer for credit to the trust fund for renewable energy and energy conservation, which is created by section 104 of this act.

6. As used in this section:

(a) “New electric generating unit” means an electric generating unit that:

(1) Uses a form of energy other than renewable energy as its primary source of energy to generate electricity sold at wholesale or retail;

(2) Has a maximum generating capacity of 1 megawatt or more; and

(3) Begins, in whole or in part, commercial operation on or after the effective date of this act, whether or not construction began on the electric generating unit before the effective date of this act.

(b) “Person” means:

(1) A natural person;

(3) A government or an agency or instrumentality of a government, including, without limitation, this state or an agency or instrumentality of this state; and

(4) A political subdivision of this state or of any other government or an agency or instrumentality of a political subdivision of this state or of any other government.

(1) Biomass;

(2) Hydrogen;

(3) Geothermal energy;

(4) Solar energy;

(5) Waterpower; and

(6) Wind.

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The term does not include coal, natural gas, oil, propane or any other fossil fuel, or nuclear energy.

Sec. 48. As used in NRS 704.070 to 704.110, inclusive, and sections 48 to 52, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 49, 50 and 51 of this act have the meanings ascribed to them in those sections.

Sec. 49. “Application to make changes in any schedule” and “application” include, without limitation:

1. A general rate application;

2. An application to recover the increased cost of purchased fuel, purchased power, or natural gas purchased for resale; and

3. An application to clear deferred accounts.

Sec. 50. “Rate” means any individual or joint rate, toll or charge imposed by a public utility for a service performed or product furnished by the public utility.

Sec. 51. “Schedule” means any schedule that establishes or otherwise sets the rates for a public utility and any individual or joint rule, regulation, practice, classification or measurement that in any manner affects those rates.

Sec. 52. For the purposes of NRS 704.070 to 704.110, inclusive, and sections 48 to 52, inclusive, of this act, a public utility shall be deemed to make changes in a schedule if the public utility implements a new schedule or amends an existing schedule.

Sec. 53. NRS 704.005 is hereby amended to read as follows:

704.005 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 704.010 to 704.030, inclusive, and sections 41 and 42 of this act have the meanings ascribed to them in those sections.

Sec. 54. NRS 704.033 is hereby amended to read as follows:

704.033 1. The commission shall levy and collect an annual assessment from all public utilities subject to the jurisdiction of the commission.

2. Except as otherwise provided in subsection 3, the annual assessment must be:

(a) For the use of the commission, not more than 3.50 mills; and

(b) For the use of the consumer’s advocate , [of the bureau of consumer protection in the office of the attorney general,] not more than 0.75 mills,

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on each dollar of gross operating revenue derived from the intrastate operations of such utilities in the State of Nevada, except that the minimum assessment in any 1 year must be $10. The total annual assessment must be not more than 4.25 mills.

3. For railroads the total annual assessment must be the amount levied for the use of the commission pursuant to paragraph (a) of subsection 2. The levy for the use of the consumer’s advocate must not be assessed against railroads.

4. The gross operating revenue of the utilities must be determined for the preceding calendar year. In the case of:

(a) Telephone utilities, except as otherwise provided in paragraph (c), the revenue shall be deemed to be all intrastate revenues that are considered by the commission for the purpose of establishing rates.

(b) Railroads, the revenue shall be deemed to be the revenue received only from freight and passenger intrastate movements.

(c) All public utilities, the revenue does not include the proceeds of any commodity, energy or service furnished to another public utility for resale.

Sec. 55. NRS 704.035 is hereby amended to read as follows:

704.035 1. On or before June 1 of each year, the commission shall mail revenue report forms to all public utilities under its jurisdiction, to the address of those utilities on file with the commission. The revenue report form serves as notice of the commission’s intent to assess the utilities, but failure to notify any utility does not invalidate the assessment with respect thereto.

2. Each public utility subject to the provisions of NRS 704.033 shall complete the revenue report referred to in subsection 1, compute the assessment and return the completed revenue report to the commission accompanied by payment of the assessment and any penalty due, pursuant to the provisions of subsection 5.

3. The assessment is due on July 1 of each year, but may, at the option of the public utility, be paid quarterly on July 1, October 1, January 1 and April 1.

4. The assessment computed by the utility is subject to review and audit by the commission, and the amount of the assessment may be adjusted by the commission as a result of the audit and review.

5. Any public utility failing to pay the assessment provided for in NRS 704.033 on or before August 1, or if paying quarterly, on or before August 1, October 1, January 1 or April 1, shall pay, in addition to such assessment, a penalty of 1 percent of the total unpaid balance for each month or portion thereof that the assessment is delinquent, or $10, whichever is greater, but no penalty may exceed $1,000 for each delinquent payment.

6. When a public utility sells, transfers or conveys substantially all of its assets or certificate of public convenience and necessity, the commission shall determine, levy and collect the accrued assessment for the current year not later than 30 days after the sale, transfer or conveyance, unless the transferee has assumed liability for the assessment. For purposes of this subsection the jurisdiction of the commission over the selling, transferring or conveying public utility continues until it has paid the assessment.

7. The commission may bring an appropriate action in its own name for the collection of any assessment and penalty which is not paid as provided in this section.

8. The commission shall, on a quarterly basis, transfer to the account for the consumer’s advocate [of the bureau of consumer protection in the office of the attorney general] that portion of the assessments collected which belongs to the consumer’s advocate.

Sec. 56. NRS 704.070 is hereby amended to read as follows:

704.070 Unless exempt under the provisions of NRS 704.075 , 704.095 or 704.097:

1. [Every] Each public utility shall file with the commission, within a time to be fixed by the commission, a copy of all schedules [which] that are currently in force for the public utility. Such schedules must be open to public inspection . [, showing all rates, tolls and charges which it has established and which are in force at the time for any service performed or product furnished in connection therewith by any public utility controlled and operated by it.

2. All rules or regulations that in any manner affect the rates charged or to be charged for any service or product must be filed with that schedule.]

2. A copy of each schedule that is currently in force for the public utility, or so much of the schedule as the commission deems necessary for inspection by the public, must be:

(a) Printed in plain type and posted in each office of the public utility where payments are made to the public utility by its customers; and

(b) Open to inspection by the public and in such form and place as to be readily accessible to and conveniently inspected by the public.

Sec. 57. NRS 704.075 is hereby amended to read as follows:

704.075 1. As used in this section, with respect to the sale of natural gas:

(a) “Generating customer” means a customer who generates electricity by burning natural gas.

(b) “Industrial customer” means a customer engaged primarily in manufacturing or processing which changes raw or unfinished materials into another form or creates another product.

(c) “Large commercial customer” means a customer whose requirements equal or exceed [50 thousand] 50,000 cubic feet of natural gas per day on any day and which is an institution, an agency of federal, state or local government, or engaged primarily in renting out offices or other commercial space, in providing lodging or in the sale of other goods or services.

2. The commission shall establish standards for the setting, increase or decrease of rates [and charges] for natural gas to generating, industrial and large commercial customers. These standards must authorize increases or decreases on less than 30 days’ notice. Establishing different classes of customers, and charging different rates to customers of the same class, for these customers do not violate this chapter.

3. The commission may, for sales to generating, industrial and large commercial customers:

(a) Exempt the [filing of] rates for natural gas from those provisions of NRS [704.080, 704.090,] 704.070, 704.100 and 704.110 [which it] that the commission determines are not needed to protect the public interest.

(b) Authorize the establishment of different classes of customer or the charging of different rates for customers of the same class, based on value of the service and on the customer’s ability to change from one fuel to another.

Sec. 58. NRS 704.100 is hereby amended to read as follows:

704.100 Except as otherwise provided in NRS 704.075 or as may otherwise be provided by the commission pursuant to NRS 704.095 [, 704.097 or 704.275:

1. No changes may be made] or 704.097:

1. A public utility shall not make changes in any schedule, [including schedules of joint rates, or in the rules or regulations affecting any rates or charges, except upon 30 days’ notice to the commission, and all changes must be plainly indicated, or by filing new schedules in lieu thereof 30 days before the time the schedules are to take effect. The commission, upon application of any public utility, may prescribe a shorter time within which a reduction may be made.

2. Copies] unless the public utility files with the commission an application to make the proposed changes and the commission approves the proposed changes pursuant to NRS 704.110.

2. A public utility shall post copies of all proposed[,] schedules and all new or amended schedules [must be filed and posted in the offices of public utilities as required for original schedules.] in the same offices and in substantially the same form, manner and places as required by NRS 704.070 for the posting of copies of schedules that are currently in force.

3. A public utility may not set forth as justification for a rate increase any items of expense or rate base [which] that previously have been considered and disallowed by the commission, [only if] unless those items are clearly identified in the application and new facts or considerations of policy for each item are advanced in the application to justify a reversal of the [commission’s] prior decision[.

4. The commission shall determine whether a hearing must be held when] of the commission.

4. Except as otherwise provided in subsection 5, if the proposed change in any schedule [stating a new or revised individual or joint rate, fare or charge, or any new or revised individual or joint regulation or practice affecting any rate, fare or charge,] will result in an increase in annual gross operating revenue , as certified by the applicant [of $2,500 or less.] , in an amount that does not exceed $2,500, the commission shall determine whether it should dispense with a hearing regarding the proposed change.

5. If the applicant is a public utility furnishing telephone service and the proposed change in any schedule will result in an increase in annual gross operating revenue, as certified by the applicant, in an amount that does not exceed $50,000 or 10 percent of the applicant’s annual gross operating revenue, whichever is less, the commission shall determine whether it should dispense with a hearing regarding the proposed change.

6. In making the determination pursuant to subsection 4 or 5, the commission shall first consider all timely written protests, any presentation the staff of the commission may desire to present, the application of the public utility and any other matters deemed relevant by the commission.

Sec. 59. NRS 704.110 is hereby amended to read as follows:

704.110 Except as otherwise provided in NRS 704.075 or as may otherwise be provided by the commission pursuant to NRS 704.095 or 704.097:

1. [Whenever there is filed] If a public utility files with the commission an application to make changes in any schedule [stating a new or revised individual or joint rate or charge, or any new or revised individual or joint regulation or practice affecting any rate or charge, or any schedule resulting] , including, without limitation, changes that will result in a discontinuance, modification or restriction of service, the commission [may, upon complaint or upon its own motion without complaint, at once, without answer or formal pleading by the interested utility, investigate or, upon reasonable notice, conduct a hearing concerning] shall investigate the propriety of the [rate, charge, classification, regulation, discontinuance, modification, restriction or practice.

2. Pending the investigation or hearing and the decision thereon, the commission, upon delivering to the utility affected thereby a statement in writing of its reasons for the suspension, may suspend the operation of the schedule and defer the use of the rate, charge, classification, regulation, discontinuance, modification, restriction or practice. If the rate, charge, classification, regulation, discontinuance, modification, restriction or practice is part of:

(a) A filing made pursuant to subsection 7, the suspension must not be effective for more than 90 days beyond the time when the rate, charge, classification, regulation, discontinuance, modification, restriction or practice would otherwise go into effect.

(b) Any other filing made pursuant to this section, the suspension must not be effective for more than 150 days beyond the time when the rate, charge, classification, regulation, discontinuance, modification, restriction or practice would otherwise go into effect.

3. Whenever there is filed] proposed changes to determine whether to approve or disapprove the proposed changes. If an electric utility files such an application and the application is a general rate application or an application to clear its deferred accounts, the consumer’s advocate shall be deemed a party of record.

2. Except as otherwise provided in subsection 3, if a public utility files with the commission an application to make changes in any schedule, not later than 180 days after the date on which the application is filed, the commission shall issue a written order approving or disapproving, in whole or in part, the proposed changes.

3. If a public utility files with the commission [any schedule stating an increased individual or joint rate or charge for service or equipment,] a general rate application, the public utility shall submit with its application a statement showing the recorded results of revenues, expenses, investments and costs of capital for its most recent 12 months for which data were available when the application was prepared. [During any hearing concerning the increased rates or charges determined by the commission to be necessary,] In determining whether to approve or disapprove any increased rates, the commission shall consider evidence in support of the increased rates [or charges] based upon actual recorded results of operations for the same 12 months, adjusted for increased revenues, any increased investment in facilities, increased expenses for depreciation, certain other operating expenses as approved by the commission and changes in the costs of securities which are known and are measurable with reasonable accuracy at the time of filing and which will become effective within 6 months after the last month of those 12 months, but [no new rates or charges may be placed] the public utility shall not place into effect any increased rates until the changes have been experienced and certified by the public utility to the commission [.] and the commission has approved the increased rates. The commission shall also consider evidence supporting expenses for depreciation, calculated on an annual basis, applicable to major components of the public utility’s plant placed into service during the recorded test period or the period for certification as set forth in the application. Adjustments to revenues, operating expenses and costs of securities must be calculated on an annual basis. Within 90 days after the [filing with the commission of] date on which the certification required [in] by this subsection [, or before the expiration of any period of suspension ordered pursuant to subsection 2,] is filed with the commission, or within 180 days after the date on which the general rate application is filed with the commission, whichever time is longer, the commission shall make such order in reference to [those rates or charges] the increased rates as is required by this chapter. An electric utility shall file a general rate application pursuant to this subsection at least once every 24 months.

4. [After full investigation or hearing, whether completed before or after the date upon which the rate, charge, classification, regulation, discontinuance, modification, restriction or practice is to go into effect, the commission may make such order in reference to the rate, charge, classification, regulation, discontinuance, modification, restriction or practice as would be proper in a proceeding initiated after the rate, charge, classification, regulation, discontinuance, modification, restriction or practice has become effective.

5. Except as otherwise provided in subsection 6, whenever] If a public utility files with the commission an application to make changes in any schedule and the commission does not issue a final written order regarding the proposed changes within the time required by this section, the proposed changes shall be deemed to be approved by the commission.

5. If a public utility files with the commission a general rate application [for an increased rate or charge for, or classification, regulation, discontinuance, modification, restriction or practice involving service or equipment has been filed with the commission, a] , the public utility shall not [submit] file with the commission another general rate application until all pending general rate applications [for increases in rates submitted] filed by that public utility have been decided by the commission unless, after application and hearing, the commission determines that a substantial financial emergency would exist if the [other application] public utility is not permitted to [be submitted] file another general rate application sooner. The provisions of this subsection do not prohibit the public utility from filing with the commission, while a general rate application is pending, an application to recover the increased cost of purchased fuel, purchased power, or natural gas purchased for resale pursuant to subsection 6 or an application to clear its deferred accounts pursuant to subsection 7, if the public utility is otherwise authorized by those provisions to file such an application.

6. A public utility may file an application to recover the increased cost of purchased fuel, purchased power, or natural gas purchased for resale once every 30 days. The provisions of this subsection do not apply to an electric utility using deferred accounting pursuant to section 19 of [this act.] Assembly Bill No. 369 of this session.

7. Except as otherwise provided in subsection 8 [, whenever] and subsection 4 of NRS 704.100, if an electric utility using deferred accounting pursuant to section 19 of [this act] Assembly Bill No. 369 of this session files an application to clear its deferred accounts and to change one or more of its rates [or charges] based upon changes in the costs for purchased fuel or purchased power, the commission, after a public hearing and by an appropriate order:

(a) Shall allow the electric utility to clear its deferred accounts by refunding any credit balance or recovering any debit balance over a period not to exceed 3 years, as determined by the commission.

(b) Shall not allow the electric utility to recover any debit balance, or portion thereof, in an amount that would result in a rate of return during the period of recovery that exceeds the rate of return authorized by the commission in the most recently completed rate proceeding for the electric utility.

8. Before allowing an electric utility to clear its deferred accounts pursuant to subsection 7, the commission shall determine whether the costs for purchased fuel and purchased power that the electric utility recorded in its deferred accounts are recoverable and whether the revenues that the electric utility collected from customers in this state for purchased fuel and purchased power are properly recorded and credited in its deferred accounts. The commission shall not allow the electric utility to recover any costs for purchased fuel and purchased power that were the result of any practice or transaction that was undertaken, managed or performed imprudently by the electric utility.

9. [Whenever] If an electric utility files an application to clear its deferred accounts pursuant to subsection 7 while a general rate application is pending, the electric utility shall:

(a) Submit with its application to clear its deferred accounts information relating to the cost of service and rate design; and

(b) Supplement its general rate application with the same information, if such information was not submitted with the general rate application.

10. A utility facility identified in a 3-year plan submitted pursuant to NRS 704.741 and accepted by the commission for acquisition or construction pursuant to NRS 704.751 and the regulations adopted pursuant thereto shall be deemed to be a prudent investment. The utility may recover all just and reasonable costs of planning and constructing such a facility.

11. As used in this section, “electric utility” has the meaning ascribed to it in section 19 of [this act.] Assembly Bill No. 369 of this session.

Sec. 60. NRS 704.329 is hereby amended to read as follows:

704.329 1. Except as otherwise provided in [this section , a] subsection 6:

(a) A person shall not merge with, directly acquire, indirectly acquire through a subsidiary or affiliate, or otherwise directly or indirectly obtain control of a public utility doing business in this state or an entity that holds a controlling interest in such a public utility without first submitting to the commission an application for authorization of the proposed [merger, acquisition or other] transaction and obtaining authorization from the commission.

(b) A public utility doing business in this state shall not merge with, directly acquire, indirectly acquire through a subsidiary or affiliate, or otherwise directly or indirectly obtain control of another entity without first submitting to the commission an application for authorization of the proposed transaction and obtaining authorization from the commission. The provisions of this paragraph do not apply to such a public utility if, in the most recently completed calendar quarter, not more than 10 percent of the public utility’s gross operating revenue was derived from intrastate services provided to retail customers in this state by the public utility.

(c) An entity that holds a controlling interest in a public utility doing business in this state shall not merge with, directly acquire, indirectly acquire through a subsidiary or affiliate, or otherwise directly or indirectly obtain control of another entity without first submitting to the commission an application for authorization of the proposed transaction and obtaining authorization from the commission. The provisions of this paragraph do not apply to such an entity if, in the most recently completed calendar quarter, not more than 10 percent of the entity’s gross operating revenue was derived from intrastate services provided to retail customers in this state by public utilities in which the entity holds a controlling interest.

2. Any [merger, acquisition or other] transaction that violates the provisions of this section is void and unenforceable and is not valid for any purpose.

3. Before authorizing a proposed [merger, acquisition or other] transaction pursuant to this section, the commission shall consider the effect of the proposed [merger, acquisition or other] transaction on the public interest and the customers in this state. The commission shall not authorize the proposed [merger, acquisition or other] transaction unless the commission finds that the proposed [merger, acquisition or other] transaction:

(a) Will be in the public interest; and

(b) Complies with the provisions of sections 8 to 18, inclusive, of [this act,] Assembly Bill No. 369 of this session, if the proposed [merger, acquisition or other] transaction is subject to those provisions.

4. The commission may base its authorization of the proposed [merger, acquisition or other] transaction upon such terms, conditions or modifications as the commission deems appropriate.

5. If the commission does not issue a final order regarding the proposed [merger, acquisition or other] transaction within 180 days after the date on which an application or amended application for authorization of the proposed [merger, acquisition or other] transaction was filed with the commission, and the proposed [merger, acquisition or other] transaction is not subject to the provisions of sections 8 to 18, inclusive, of [this act,] Assembly Bill No. 369 of this session, the proposed [merger, acquisition or other] transaction shall be deemed to be authorized by the commission.

6. The provisions of this section do not apply to the transfer of stock of a public utility doing business in this state or to the transfer of the stock of an entity [holding]that holds a controlling interest in such a public utility, if a transfer of not more than 25 percent of the common stock of such a public utility or entity is proposed.

7. As used in this section:

(a) “Affiliate” means an entity that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with another entity.

(b) “Entity” means any person other than a natural person, including, without limitation, a public utility and an entity that holds a controlling interest in a public utility.

(1) A natural person;

(3) A government or an agency or instrumentality of a government, including, without limitation, this state or an agency or instrumentality of this state; and

(4) A political subdivision of this state or of any other government or an agency or instrumentality of a political subdivision of this state or of any other government.

(d) “Transaction” means a merger, acquisition or change in control described in subsection 1.

Sec. 61. NRS 704.68964 is hereby amended to read as follows:

704.68964 1. An electing carrier may, pursuant to this section and in accordance with NRS 704.68976, exercise flexibility in the pricing of:

(a) Competitive services and discretionary services. The commission shall not specify a maximum rate for any competitive services or discretionary services of the electing carrier. The electing carrier shall, with regard to any competitive or discretionary service that it provides, set the price of that service above the price floor of the service.

(b) A package of services, which may include basic network services, competitive services, discretionary services and other essential services.

2. Except as otherwise provided in this subsection, an electing carrier may, upon 30-days’ notice to the commission in writing, exercise flexibility in the pricing of its services pursuant to subsection 1 and is exempt, with respect to the pricing of its services, from the provisions of NRS 704.100 and 704.110 and the regulations of the commission relating thereto. The notice must include a description in reasonable detail of:

(a) The characteristics of the services that will be subject to flexibility in pricing;

(b) The terms and conditions applicable to the services;

(d) The price or prices of the services or packages of services; and

(e) A certificate which provides that the electing carrier has prepared a cost study of the price floor to support the price or prices for each service and that, on and after the date on which the notice is filed with the commission, any affected person may, upon request, inspect and copy the cost study, subject to reasonable terms and conditions of any applicable confidentiality and nondisclosure agreement relating to the services.

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The notice requirements of this subsection do not apply to an electing carrier with respect to the pricing of competitive services or for packages comprised exclusively of competitive services.

3. The price for a package of services must not be lower than the lesser of:

(a) The sum of the price floors for each of the services contained in the package; or

(b) The sum of the prices of the basic network services, as set forth in the tariffs of the electing carrier, and the price floors for each of the other services contained in the package.

4. The commission shall not specify a maximum rate for a package of services.

5. Each of the services included in a package pursuant to paragraph (b) of subsection 1 must be made available on an individual basis.

Sec. 62. NRS 704.68972 is hereby amended to read as follows:

704.68972 1. An electing carrier may introduce new services upon 30-days’ notice to the commission in writing. The notice must include a description in reasonable detail of:

(a) The characteristics of each new service;

(b) The terms and conditions applicable to each new service;

(d) The price or prices of each new service; and

(e) A certificate that provides that the electing carrier has prepared a cost study of the price floor to support the price or prices for each new service and that, on and after the date on which the notice is filed with the commission, any affected person may, upon request, inspect and copy the cost study, subject to reasonable terms and conditions of any applicable confidentiality and nondisclosure agreement.

2. Each new service is subject to the conditions set forth in NRS 704.68964.

3. Each new service is exempt from the provisions of NRS 704.100 and 704.110 and the regulations of the commission relating thereto.

4. Unless otherwise classified by the commission as a competitive service pursuant to its regulations, a new service must be classified as a discretionary service for which the commission shall not specify a maximum rate. The electing carrier shall set the price of the new service above the price floor of the service.

5. As used in this section, a “new service” means a telecommunication service:

(a) That provides a function, feature or capability which is materially different from any service or services previously offered by the carrier; or

(b) Combines two or more previously provided new services.

Sec. 63. NRS 704.767 is hereby amended to read as follows:

704.767 As used in NRS [704.767] 704.766 to 704.775, inclusive, unless the context otherwise requires, the words and terms defined in NRS 704.768 to 704.772, inclusive, and section 43 of this act have the meanings ascribed to them in those sections.

Sec. 64. NRS 704.771 is hereby amended to read as follows:

704.771 “Net metering system” means a facility or energy system for the [production of electrical energy] generation of electricity that:

1. Uses [wind or solar] renewable energy as its primary source of [fuel;] energy to generate electricity;

2. Has a generating capacity of not more than [10] 20 kilowatts;

3. Is located on the customer-generator’s premises;

4. Operates in parallel with the utility’s transmission and distribution facilities; and

5. Is intended primarily to offset part or all of the customer-generator’s requirements for electricity.

Sec. 65. NRS 704.773 is hereby amended to read as follows:

704.773 1. A utility shall offer net metering, as set forth in NRS 704.775, to the customer-generators operating within its service area . [until 100 of those customer-generators have accepted the offer.]

2. A utility:

(a) Shall offer to make available to each of its customer-generators who has accepted its offer for net metering an energy meter that is capable of registering the flow of electricity in two directions.

(b) May, at its own expense and with the written consent of the customer-generator, install one or more additional meters to monitor the flow of electricity in each direction.

(c) Shall not charge a customer-generator any fee or charge that would increase the customer-generator’s minimum monthly charge to an amount greater than that of other customers of the utility in the same rate class as the customer-generator.

(d) Shall ensure that for any period in which a customer-generator is generating and feeding electricity back to the utility, the electricity so generated and fed back to the utility is valued at the same price per kilowatt-hour that the utility would charge the customer-generator for electricity during that same period.

Sec. 66. NRS 704.910 is hereby amended to read as follows:

704.910 1. The provisions of NRS 704.910 to 704.960, inclusive, apply to mobile home parks governed by the provisions of chapters 118B and 461A of NRS, utilities which provide service to those parks and landlords who operate those parks.

2. A utility which provides gas, water or electricity to any landlord exclusively for distribution or resale to tenants residing in mobile homes or for the landlord’s residential use shall not [charge] :

(a) Charge the landlord for those services at a rate higher than the current rates offered by the utility to its residential customers.

(b) Terminate those services without complying with the regulations adopted by the commission pursuant to section 44 of this act.

Sec. 67. NRS 228.360 is hereby amended to read as follows:

228.360 The consumer’s advocate:

1. Shall intervene in and represent the public interest in [all] :

(a) All proceedings conducted pursuant to sections 8 to 18, inclusive, of [this act.] Assembly Bill No. 369 of this session; and

(b) All proceedings conducted pursuant to NRS 704.070 to 704.110, inclusive, and sections 48 to 52, inclusive, of this act in which an electric utility has filed a general rate application or an application to clear its deferred accounts.

2. May, with respect to all public utilities except railroads and cooperative utilities, and except as otherwise provided in NRS 228.380:

(a) Conduct or contract for studies, surveys, research or expert testimony relating to matters affecting the public interest or the interests of utility customers.

(b) Examine any books, accounts, minutes, records or other papers or property of any public utility subject to the regulatory authority of the public utilities commission of Nevada in the same manner and to the same extent as authorized by law for members of the public utilities commission of Nevada and its staff.

(c) Except as otherwise provided in subsection 1, petition for, request, initiate, appear or intervene in any proceeding concerning rates, charges, tariffs, modifications of service or any related matter before the public utilities commission of Nevada or any court, regulatory body, board, commission or agency having jurisdiction over any matter which the consumer’s advocate may bring before or has brought before the public utilities commission of Nevada or in which the public interest or the interests of any particular class of utility customers are involved. The consumer’s advocate may represent the public interest or the interests of any particular class of utility customers in any such proceeding, and he is a real party in interest in the proceeding.

3. As used in this section, “electric utility” has the meaning ascribed to it in section 19 of Assembly Bill No. 369 of this session.

Sec. 68. NRS 228.390 is hereby amended to read as follows:

228.390 Except as otherwise provided in NRS 704.110 and sections 8 to 18, inclusive, of [this act:] Assembly Bill No. 369 of this session:

1. The consumer’s advocate has sole discretion to represent or refrain from representing the public interest and any class of customers in any proceeding.

2. In exercising his discretion, the consumer’s advocate shall consider the importance and extent of the public interest or the customers’ interests involved and whether those interests would be adequately represented without his participation.

3. If the consumer’s advocate determines that there would be a conflict between the public interest and any particular class of customers or any inconsistent interests among the classes of customers involved in a particular matter, he may choose to represent one of the interests, to represent no interest, or to represent one interest through his office and another or others through outside counsel engaged on a case basis.

Sec. 69. Chapter 349 of NRS is hereby amended by adding thereto the provisions set forth as sections 70 to 95, inclusive, of this act.

Sec. 70. As used in sections 70 to 95, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 71 to 82, inclusive, of this act have the meanings ascribed to them in those sections.

Sec. 71. “Biomass” means any organic matter that is available on a renewable basis, including, without limitation:

1. Agricultural crops and agricultural wastes and residues;

2. Wood and wood wastes and residues;

3. Animal wastes;

4. Municipal wastes; and

5. Aquatic plants.

Sec. 72. “Cost of a renewable energy generation project” means all or a designated part of the cost of a renewable energy generation project, including any incidental cost pertaining to the project. The cost of a renewable energy generation project may include, among other costs, the costs of:

1. Designing and constructing the renewable energy generation project;

2. Surveys, audits, preliminary plans and other plans, specifications, estimates and other costs of preparations;

3. Appraising, printing, estimating, advice, services of engineers, architects, financial consultants, attorneys, clerical personnel and other agents and employees;

4. Publishing, posting, mailing and otherwise giving notice, filing or recording instruments, taking options and fees to banks;

5. Establishment of a reserve for contingencies;

6. Interest on bonds for any time which does not exceed the estimated period of construction plus 1 year, discounts on bonds, reserves for the payment of the principal of and interest on bonds, replacement expenses and other costs of issuing bonds;

7. Amending any resolution or other instrument authorizing the issuance of, or otherwise relating to, bonds for the renewable energy generation project; and

8. Short-term financing,

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and the expense of operation and maintenance of the renewable energy generation project.

Sec. 73. “Director” means the director of the department of business and industry or any person within the department of business and industry designated by the director to perform duties in connection with a renewable energy generation project or the issuance of bonds.

Sec. 74. “Expense of operation and maintenance” means any reasonable and necessary current expense of the state for the operation, maintenance or administration of a renewable energy generation project or of the collection and administration of revenues from such a project. The term includes, among other expenses:

1. Expenses for engineering, auditing, reporting, legal services and other expenses of the director which are directly related to the administration of renewable energy generation projects.

2. Premiums for fidelity bonds and policies of property and liability insurance pertaining to renewable energy generation projects, and shares of the premiums of blanket bonds and policies which may be reasonably allocated to the state.

3. Payments to pension, retirement, health insurance and other insurance funds.

4. Reasonable charges made by any paying agent, commercial bank, credit union, trust company or other depository bank pertaining to any bonds.

5. Services rendered pursuant to the terms of contracts, services of professionally qualified persons, salaries, administrative expenses and the cost of materials, supplies and labor pertaining to the issuance of any bonds, including the expenses of any trustee, receiver or other fiduciary.

6. Costs incurred in the collection and any refund of revenues from the renewable energy generation project, including the amount of the refund.

Sec. 75. “Mortgage” includes a deed of trust and any other security agreement covering real or personal property, or both.

Sec. 76. “Obligor” means the natural person, partnership, firm, company, public utility, corporation, association, trust, estate, political subdivision, state agency or any other legal entity, or its legal representative, who agrees to make the payments sufficient to pay the principal of, premium, if any, and interest on the state securities or revenue bonds issued pursuant to sections 70 to 95, inclusive, of this act.

Sec. 77. 1. “Renewable energy” means:

(a) Biomass;

(b) Hydrogen;

(d) Solar energy;

(e) Waterpower; and

(f) Wind.

2. The term does not include coal, natural gas, oil, propane or any other fossil fuel, or nuclear energy.

Sec. 78. 1. “Renewable energy generation project” means a project involving an electric generating unit that uses renewable energy as its primary source of energy to generate electricity.

2. The term does not include a project involving an electric generating unit that uses nuclear energy, in whole or in part, to generate electricity.

Sec. 79. “Revenue bonds” means bonds, notes or other securities evidencing a special limited obligation of the state, the principal and interest of which are payable solely out of revenues derived from the financing, leasing or sale of the renewable energy generation project that is to be financed.

Sec. 80. “State securities” means notes, warrants, interim debentures, bonds and temporary bonds issued as general obligations by the director for any renewable energy generation project, or for a refunding, which are payable from taxes, whether or not additionally secured by a pledge of all or any designated revenues of one or more renewable energy generation projects.

Sec. 81. “Task force” means the task force for renewable energy and energy conservation created by section 105 of this act.

Sec. 82. “Tax” means a general tax upon property.

Sec. 83. The director has all the powers necessary to accomplish the purposes set forth in sections 70 to 95, inclusive, of this act. These powers must be exercised for the health, safety, convenience, prosperity and welfare of the inhabitants of this state. The director may adopt such regulations as the director determines are necessary to carry out the provisions of sections 70 to 95, inclusive, of this act.

Sec. 84. Sections 70 to 95, inclusive, of this act must be construed liberally to effectuate the purposes of those sections.

Sec. 85. The director shall not finance a renewable energy generation project unless, before financing:

1. The renewable energy generation project has been finally approved by the task force after a public hearing on the matter.

2. The director finds and the state board of finance approves the findings of the director that:

(a) The contemplated lessee, purchaser or other obligor has sufficient financial resources to place the renewable energy generation project in operation and to continue its operation, meeting the obligations of the lease, purchase contract or financing agreement;

(b) There are sufficient safeguards to assure that all money provided by the director will be expended solely for the purposes of the renewable energy generation project; and

(c) The total amount of money necessary to be provided by the director for financing the renewable energy generation project has been determined in writing by the task force on a form acceptable to the director.

3. For the issuance of state securities, the director and the state board of finance have received and approved the authorizing documents showing the legal authority for the obligor to borrow and repay the proceeds of the state securities.

4. For the issuance of revenue bonds, the director and the state board of finance have received and approved:

(a) The financial plan showing that the revenues to be derived from the renewable energy generation project are adequate to pay the principal and interest on such bonds;

(b) A 5-year operating history or evidence of sufficient financial resources from the contemplated lessee, purchaser or other obligor or from a parent or other guarantor, who guarantees the payments of principal and interest on any bonds issued; and

(c) A written statement from the obligor affirming that the obligor does not undertake to commit the state, and any political subdivision or municipality thereof, to incur any pecuniary liability in connection with the issuance of the bonds.

Sec. 86. 1. The bonds must be authorized by an order of the director, and must:

(a) Be in the denominations;

(b) Bear the date or dates;

(d) Bear interest at a rate or rates specified in the order;

(e) Be in the form;

(f) Carry the registration privileges;

(g) Be executed in the manner;

(h) Be payable at the place or places within or without the state; and

(i) Be subject to the terms of redemption,

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which the order authorizing their issue provides.

2. The bonds may be sold in one or more series at par, or below or above par, in the manner and for the price or prices which the director determines in his discretion.

3. State securities must be authorized by resolution of the board of finance at the request of the director.

4. As an incidental expense to any renewable energy generation project to be financed by the bonds, the director may employ:

(a) Financial and legal consultants in regard to the financing of the renewable energy generation project; and

(b) A person whose business is in Nevada or elsewhere to act as a trustee for the renewable energy generation project.

5. The bonds are fully negotiable under the terms of the Uniform Commercial Code—Investment Securities.

Sec. 87. 1. The director may, to pay the cost of any renewable energy generation project, borrow money or otherwise become obligated, and may provide evidence of those obligations by issuing, except as otherwise provided in this subsection, state securities or revenue bonds. If the obligor is not a governmental entity, the director shall issue only revenue bonds to fulfill the obligation.

2. State obligations may be outstanding pursuant to this section in an aggregate principal amount of not more than $300,000,000.

3. State securities must be payable from taxes and may be additionally secured by all or any designated revenues from one or more renewable energy generation projects. Any governmental entity statutorily authorized to levy taxes for the payment of bonded indebtedness may use the proceeds of those taxes to pay the principal, interest and redemption premiums due in connection with state securities issued pursuant to this section. Any such state securities may be issued without an election or other preliminaries. No state securities may be issued to refund any municipal securities issued to finance a renewable energy generation project before July 1, 2001.

4. The provisions of NRS 349.150 to 349.364, inclusive, which are not inconsistent with the provisions of sections 70 to 95, inclusive, of this act, apply to the issuance of state securities pursuant to this section. The provisions of NRS 349.400 to 349.670, inclusive, which are not inconsistent with the provisions of sections 70 to 95, inclusive, of this act, apply to the issuance of revenue bonds pursuant to this section.

5. The legislature finds and declares that the issuance of state securities pursuant to sections 70 to 95, inclusive, of this act:

(a) Is necessary for the protection and preservation of the natural resources of this state and for the purpose of obtaining the benefits thereof; and

(b) Constitutes an exercise of the authority conferred by the second paragraph of section 3 of article 9 of the constitution of the State of Nevada.

Sec. 88. 1. The director may charge the obligor a fee not to exceed 2 percent of the principal amount of the financing, including a nonrefundable application fee not to exceed 0.25 percent of the principal amount or $7,500, whichever is less, payable either in advance or at the time the bonds are issued. The director shall deposit all money received pursuant to this section, except money received from application fees, with the state treasurer for credit to the account for the financing of renewable energy generation projects.

2. Money received from application fees collected pursuant to this section must be:

(a) Accounted for separately in the state general fund.

(b) Used by the director to support the operations of his office in administering the provisions of sections 70 to 95, inclusive, of this act.

3. Whether or not bonds are issued, the director shall use money received pursuant to this section, except money received from application fees, to reimburse his office for the expenses and costs incurred in financing the renewable energy generation project and, within the limits of money available for this purpose, to reimburse a municipality pursuant to the provisions of section 95 of this act. Any portion of the money so received, except money received from application fees, which exceeds the director’s expenses and costs must be refunded to the obligor.

Sec. 89. 1. Except as otherwise provided in subsection 3 and section 88 of this act, all amounts received by the director from an obligor in connection with any financing undertaken pursuant to sections 70 to 95, inclusive, of this act, must be deposited with the state treasurer for credit to the account for the financing of renewable energy generation projects which is hereby created in the fund for the municipal bond bank.

2. Any revenue from renewable energy generation projects financed with state securities which is in the account must be applied in the following order of priority:

(a) Deposited into the consolidated bond interest and redemption fund in amounts necessary to pay the principal, interest and redemption premiums due in connection with state securities issued for renewable energy generation projects.

(b) Deposited into any reserve account created for the payment of the principal, interest and redemption premiums due in connection with state securities issued for renewable energy generation projects, in amounts and at times determined to be necessary.

3. Any revenue from renewable energy generation projects financed with revenue bonds may:

(a) Be deposited in the account for the financing of renewable energy generation projects and subject to the provisions of subsection 2; or

(b) Subject to any agreement with the holders of the bonds, be invested, deposited or held by the director in such funds or accounts as he deems necessary or desirable. If the director is acting pursuant to this subsection, he need not deposit the money in the state treasury and the provisions of chapters 355 and 356 of NRS do not apply to any investments or deposits made pursuant to this subsection.

Sec. 90. 1. Any bonds issued pursuant to the provisions of sections 70 to 95, inclusive, of this act, may be refunded by the director by the issuance of refunding bonds in an amount which he deems necessary to refund the principal of the bonds to be so refunded, any unpaid interest thereon and any premiums and incidental expenses necessary to be paid in connection with refunding.

2. Refunding may be carried out whether or not the bonds to be refunded have matured or thereafter mature, either by sale of the refunding bonds and the application of the proceeds to the payment of the bonds to be refunded, or by exchange of the refunding bonds for the bonds to be refunded. The holders of the bonds to be refunded must not be compelled, without their consent, to surrender their bonds for payment or exchange before the date on which they are payable by maturity, option to redeem or otherwise, or if they are called for redemption before the date on which they are by their terms subject to redemption by option or otherwise.

3. All refunding bonds issued pursuant to this section must be payable solely from revenues and other money out of which the bonds to be refunded thereby are payable or from revenues out of which bonds of the same character may be made payable under this or any other law then in effect at the time of the refunding.

Sec. 91. No action may be brought questioning the legality of any contract, lease, agreement, indenture, mortgage, order or bonds executed, adopted or taken in connection with any renewable energy generation project or improvements authorized pursuant to sections 70 to 95, inclusive, of this act, after 30 days after the effective date of the order of the director authorizing the issuance of those bonds.

Sec. 92. The faith of the state is hereby pledged that sections 70 to 95, inclusive, of this act, will not be repealed, amended or modified to impair any outstanding bonds or any revenues pledged to their payment, or to impair, limit or alter the rights or powers vested in a city or county to acquire, finance, improve and equip a renewable energy generation project in any way that would jeopardize the interest of any lessee, purchaser or other obligor, or to limit or alter the rights or powers vested in the director to perform any agreement made with any lessee, purchaser or other obligor, until all bonds have been discharged in full or provisions for their payment and redemption have been fully made.

Sec. 93. A renewable energy generation project is not subject to any requirements relating to public buildings, structures, ground works or improvements imposed by the statutes of this state or any other similar requirements which may be lawfully waived by this section, and any requirement of competitive bidding or other restriction imposed on the procedure for award of contracts for such purpose or the lease, sale or other disposition of property is not applicable to any action taken pursuant to sections 70 to 95, inclusive, of this act, except that the provisions of NRS 338.010 to 338.090, inclusive, apply to any contract for new construction, repair or reconstruction work to be done on a renewable energy generation project.

Sec. 94. 1. The state engineer shall advise the task force, upon its request, of the existence and status of any water rights which affect a renewable energy generation project under consideration by the task force.

2. Upon the request of the task force and within the limits of available resources and staff, the director and the consumer’s advocate of the bureau of consumer protection in the office of the attorney general may on a case by case basis assist persons in the preparation of a preliminary plan for a renewable energy generation project.

Sec. 95. 1. When any municipality or other obligor desires to undertake a renewable energy generation project it may present its preliminary plan to the task force for approval. The task force shall analyze the potential output of the renewable energy generation project, and may tentatively approve it if it will increase the quantity of electricity available for use in this state.

2. If the task force, after a public hearing on the issue, tentatively approves the renewable energy generation project, the municipality or other obligor may proceed to prepare a final plan and submit it for final approval. If the task force finally approves the renewable energy generation project, the cost of the final plan may be included in the cost of the renewable energy generation project. If the task force does not finally approve the renewable energy generation project, the director may, within the limits of money available for this purpose in the account for the financing of renewable energy generation projects, reimburse a municipality for the costs incurred after the tentative approval.

Sec. 96. NRS 349.987 is hereby amended to read as follows:

349.987 1. The provisions of NRS 349.150 to 349.364, inclusive, which are not inconsistent with the provisions of NRS 349.980 to 349.987, inclusive, apply to the bonds issued pursuant to NRS 349.986.

2. The provisions of NRS 349.935 to 349.956, inclusive, and 349.961 and sections 70 to 95, inclusive, of this act, do not apply to the program or to any grants made or bonds issued pursuant to NRS 349.986.

Sec. 97. NRS 354.59811 is hereby amended to read as follows:

354.59811 1. Except as otherwise provided in NRS 354.59813, 354.59815, 354.5982, 354.5987, 354.59871, 354.705, 354.723, 450.425, 450.760, 540A.265 and 543.600, for each fiscal year beginning on or after July 1, 1989, the maximum amount of money that a local government, except a school district, a district to provide a telephone number for emergencies, or a redevelopment agency, may receive from taxes ad valorem, other than those attributable to the net proceeds of minerals or those levied for the payment of bonded indebtedness and interest thereon incurred as general long-term debt of the issuer, or for the payment of obligations issued to pay the cost of a water project pursuant to NRS 349.950, or for the payment of obligations issued to pay the cost of a renewable energy generation project pursuant to section 87 of this act, or for the payment of obligations under a capital lease executed before April 30, 1981, must be calculated as follows:

(a) The rate must be set so that when applied to the current fiscal year’s assessed valuation of all property which was on the preceding fiscal year’s assessment roll, together with the assessed valuation of property on the central assessment roll which was allocated to the local government, but excluding any assessed valuation attributable to the net proceeds of minerals, assessed valuation attributable to a redevelopment area and assessed valuation of a fire protection district attributable to real property which is transferred from private ownership to public ownership for the purpose of conservation, it will produce 106 percent of the maximum revenue allowable from taxes ad valorem for the preceding fiscal year, except that the rate so determined must not be less than the rate allowed for the previous fiscal year, except for any decrease attributable to the imposition of a tax pursuant to NRS 354.59813 in the previous year.

(b) This rate must then be applied to the total assessed valuation, excluding the assessed valuation attributable to the net proceeds of minerals and the assessed valuation of a fire protection district attributable to real property which is transferred from private ownership to public ownership for the purpose of conservation but including new real property, possessory interests and mobile homes, for the current fiscal year to determine the allowed revenue from taxes ad valorem for the local government.

2. As used in this section, “general long-term debt” does not include debt created for medium-term obligations pursuant to NRS 350.085 to 350.095, inclusive.

Sec. 98. Chapter 523 of NRS is hereby amended by adding thereto the provisions set forth as sections 99 to 107, inclusive, of this act.

Sec. 99. “Biomass” means any organic matter that is available on a renewable basis, including, without limitation:

1. Agricultural crops and agricultural wastes and residues;

2. Wood and wood wastes and residues;

3. Animal wastes;

4. Municipal wastes; and

5. Aquatic plants.

Sec. 100. “Bureau” means the bureau of consumer protection created within the office of the attorney general pursuant to NRS 228.310.

Sec. 101. “Consumer’s advocate” means the executive head of the bureau or his designee.

Sec. 102. 1. “Renewable energy” means:

(a) Biomass;

(b) Hydrogen;

(d) Solar energy;

(e) Waterpower; and

(f) Wind.

2. The term does not include coal, natural gas, oil, propane or any other fossil fuel, or nuclear energy.

Sec. 103. “Task force” means the task force for renewable energy and energy conservation created by section 105 of this act.

Sec. 104. 1. The trust fund for renewable energy and energy conservation is hereby created in the state treasury. The state treasurer shall deposit in the fund all money received by him for credit to the fund pursuant to section 47 of this act.

2. The task force shall administer the fund. As administrator of the fund, the task force:

(a) Shall maintain the financial records of the fund;

(b) Shall invest the money in the fund as the money in other state funds is invested;

(d) Shall maintain any instruments that evidence investments made with the money in the fund;

(e) May contract with vendors for any good or service that is necessary to carry out the provisions of this section; and

(f) May perform any other duties that are necessary to administer the fund.

3. The interest and income earned on the money in the fund must, after deducting any applicable charges, be credited to the fund. All claims against the fund must be paid as other claims against the state are paid.

4. Not more than 2 percent of the money in the fund may be used to pay the costs of administering the fund.

5. The money in the fund remains in the fund and does not revert to the state general fund at the end of any fiscal year.

6. All money that is deposited or paid into the fund may only be expended pursuant to an allocation made by the task force. Money expended from the fund must not be used to supplant existing methods of funding that are available to public agencies.

Sec. 105. 1. The task force for renewable energy and energy conservation is hereby created. The task force consists of nine members who are appointed as follows:

(a) Two members appointed by the majority leader of the senate, one of whom represents the interests of private industry with respect to renewable energy and the other of whom represents the interests of a nonprofit organization dedicated to the protection of the environment or to the conservation of energy or the efficient use of energy.

(b) Two members appointed by the speaker of the assembly, one of whom represents the interests of private industry with respect to renewable energy and the other of whom represents the interests of a nonprofit organization dedicated to the protection of the environment or to the conservation of energy or the efficient use of energy.

(c) Two members appointed by the minority leader of the senate, one of whom represents the interests of state government and the other of whom represents the interests of the building, mining or gaming industry in this state.

(d) Two members appointed by the minority leader of the assembly, one of whom represents the interests of local government and the other of whom represents the interests of the public utilities in this state.

(e) One member appointed by the consumer’s advocate to represent the interests of the consumers in this state.

2. A member of the task force:

(a) Must be a citizen of the United States and a resident of this state.

(b) Must have training, education, experience or knowledge concerning:

(1) The development or use of renewable energy;

(2) Financing, planning or constructing renewable energy generation projects;

(3) Measures which conserve or reduce the demand for energy or which result in more efficient use of energy;

(4) Weatherization;

(5) Building and energy codes and standards;

(6) Grants or incentives concerning energy;

(7) Public education or community relations; or

(8) Any other matter within the duties of the task force.

3. After the initial terms, the term of each member of the task force is 3 years. A vacancy on the task force must be filled for the remainder of the unexpired term in the same manner as the original appointment. A member may be reappointed to the task force.

4. A member of the task force who is an officer or employee of this state or a political subdivision of this state must be relieved from his duties without loss of his regular compensation so that he may prepare for and attend meetings of the task force and perform any work that is necessary to carry out the duties of the task force in the most timely manner practicable. A state agency or political subdivision of this state shall not require an officer or employee who is a member of the task force to:

(a) Make up the time he is absent from work to carry out his duties as a member of the task force; or

(b) Take annual leave or compensatory time for the absence.

Sec. 106. 1. The members of the task force shall select a chairman and vice chairman from among their membership. The vice chairman shall perform the duties of the chairman during any absence of the chairman.

2. The chairman and vice chairman serve in those positions for terms of 1 year. If a vacancy occurs in the chairmanship or vice chairmanship, the vacancy must be filled for the remainder of the unexpired term in the same manner as the original selection.

3. A majority of the members of the task force constitutes a quorum. A majority of the members present during a quorum may exercise all the power and authority conferred on the task force.

4. The task force shall meet at least four times annually or more frequently at the discretion of the chairman.

5. Except as otherwise provided in this subsection, the members of the task force serve without compensation and are not entitled to the per diem and travel expenses provided for state officers and employees generally. For each day of attendance at a meeting of the task force and while engaged in the business of the task force, a member of the task force who:

(a) Is an officer or employee of this state or a political subdivision of this state is entitled to receive the per diem and travel expenses provided for state officers and employees generally, paid by his governmental employer.

(b) Represents the interests of a nonprofit organization is entitled to receive the per diem and travel expenses provided for state officers and employees generally, paid from the trust fund for renewable energy and energy conservation.

6. The consumer’s advocate shall provide the task force with administrative and clerical support and with such other assistance as may be necessary for the task force to carry out its duties. Such support and assistance must include, without limitation, making arrangements for facilities, equipment and other services in preparation for and during meetings.

Sec. 107. 1. The task force shall establish comprehensive plans for the promotion and use in this state of renewable energy and for the promotion and use in this state of measures which conserve or reduce the demand for energy or which result in more efficient use of energy.

2. The comprehensive plans established by the task force must include provisions for:

(a) The education of persons and entities concerning renewable energy and measures which conserve or reduce the demand for energy or which result in more efficient use of energy.

(b) The creation of incentives for investment in and the use of renewable energy and measures which conserve or reduce the demand for energy or which result in more efficient use of energy.

(c) Grants and other money to establish programs and projects which incorporate the use of renewable energy and measures which conserve or reduce the demand for energy or which result in more efficient use of energy.

(d) Oversight and accountability with respect to the promotion and use of renewable energy and measures which conserve or reduce the demand for energy or which result in more efficient use of energy.

(e) The development or incorporation by reference of model and uniform building and energy codes and standards which are written in language which is easy to understand and which include performance standards for conservation of energy and efficient use of energy.

(f) Any other matter that the task force determines to be relevant to the promotion and use of renewable energy and measures which conserve or reduce the demand for energy or which result in more efficient use of energy.

3. In addition to establishing the comprehensive plans, the task force shall:

(a) Solicit grants and other money from the Federal Government and other sources to promote the use of renewable energy and measures which conserve or reduce the demand for energy or which result in more efficient use of energy.

(b) Identify and provide incentives to developers and builders to incorporate, in homes and other buildings, the use of renewable energy and measures which conserve or reduce the demand for energy or which result in more efficient use of energy, including, without limitation:

(1) Systems for the heating of water by solar power;

(2) Active or passive solar daylighting systems that reduce the consumption of energy; and

(3) Net metering systems.

(c) Promote programs to conserve energy or to make energy use more efficient through various devices, including, without limitation, devices that turn off air-conditioning systems for a limited time during periods of peak electrical demand.

(d) Evaluate the benefits of distributed generation and consider paying for the cost of a pilot project involving a distributed generation unit which uses renewable energy as its primary source of energy to generate electricity and which generates more than 20 kilowatts of electricity per hour.

(e) Carry out the duties assigned to the task force pursuant to sections 70 to 95, inclusive, of this act.

(f) Take any other actions that the task force deems necessary to carry out its duties, including, without limitation, contracting with consultants, if necessary, for the purposes of program design or to assist the task force in carrying out its duties.

4. As used in this section:

(a) “Distributed generation” means the generation of electricity in close proximity to the place of use, including, without limitation, the use of generators and small turbines.

(b) “Net metering system” has the meaning ascribed to it in NRS 704.771.

Sec. 108. NRS 523.011 is hereby amended to read as follows:

523.011 1. The legislature finds that:

(a) Energy is essential to the economy of the state and to the health, safety and welfare of the people of the state.

(b) The state has a responsibility to encourage the maintenance of a reliable and economical supply of energy at a level which is consistent with the protection of environmental quality.

(c) The state has a responsibility to encourage the utilization of a wide range of measures which reduce wasteful uses of energy resources.

(d) Planning for energy conservation and future energy requirements should include consideration of state, regional and local plans for land use, urban expansion, transportation systems, environmental protection and economic development.

(e) Government and private enterprise need to accelerate research and development of [alternative] sources of renewable energy and to improve technology related to the research and development of existing sources of energy.

(f) While government and private enterprise are seeking to accelerate research and development of [alternative] sources of renewable energy, they must also prepare for and respond to the advent of competition within the electrical energy industry and are, therefore, encouraged to maximize the use of indigenous energy resources to the extent competitively and economically feasible.

(g) Prevention of delays and interruptions in providing energy, protecting environmental values and conserving energy require expanded authority and capability within state government.

2. It is the policy of this state to encourage participation with all levels of government and private enterprise in cooperative state, regional and national programs to assure adequate supplies of energy resources and markets for such energy resources.

3. It is the policy of this state to assign the responsibility for managing and conserving energy and its sources to agencies whose other programs are similar, to avoid duplication of effort in developing policies and programs for energy.

Sec. 109. NRS 523.021 is hereby amended to read as follows:

523.021 As used in this chapter, unless the context otherwise requires[:

1. “Department” means the department of business and industry.

2. “Director” means the director of the department.] , the words and terms defined in sections 99 to 103, inclusive, of this act have the meanings ascribed to them in those sections.

Sec. 110. NRS 523.051 is hereby amended to read as follows:

523.051 The [director] consumer’s advocate may:

1. Administer any gifts or grants which the [department] bureau is authorized to accept for the purposes of this chapter.

2. Expend money received from those gifts or grants or from legislative appropriations to contract with qualified persons or institutions for research in the production and efficient use of energy resources.

3. Enter into any cooperative agreement with any federal or state agency or political subdivision.

4. Participate in any program established by the Federal Government relating to sources of energy and adopt regulations appropriate to that program.

Sec. 111. NRS 523.131 is hereby amended to read as follows:

523.131 The [director] consumer’s advocate shall:

1. Acquire and analyze information relating to energy and to the supply, demand and conservation of its sources.

2. Utilize all available public and private means to provide information to the public about problems relating to energy and to explain how conservation of energy and its sources may be accomplished.

3. Review and evaluate information which identifies trends and permits forecasting of the energy available to the state. Such forecasts must include estimates on:

(a) The level of demand for energy in the state for 5-, 10- and 20-year periods;

(b) The amount of energy available to meet each level of demand;

(d) The [alternative] sources of renewable energy which are available and their possible effects [.] ; and

(e) The reduction in the demand for energy which is possible from available and practicable measures that conserve or reduce the demand for energy or which result in more efficient use of energy.

4. Study means of reducing wasteful, inefficient, unnecessary or uneconomical uses of energy and encourage the maximum utilization of existing sources of energy in the state.

5. Encourage the development of [any existing and alternative] :

(a) Any existing sources of energy and any sources of renewable energy which will benefit the state [.] ; and

(b) Any measures which conserve or reduce the demand for energy or which result in more efficient use of energy.

6. In conjunction with the desert research institute, review policies relating to the research and development of the state’s geothermal resources and make recommendations to the appropriate state and federal agencies for establishing methods of developing the geothermal resources within the state.

7. To the extent practicable, carry out his powers and duties pursuant to this chapter in consultation with the task force to avoid duplication of effort in developing policies and programs for renewable energy and energy conservation.

Sec. 112. NRS 523.141 is hereby amended to read as follows:

523.141 1. The [director] consumer’s advocate shall prepare a state energy conservation plan which provides methods for conserving and improving efficiency in the use of energy resources and establishes procedures for reducing the rate of growth of energy demand and minimizing the adverse social, economic, political and environmental effects of increasing energy resource consumption.

2. The plan must be [presented] :

(a) Consistent with the comprehensive plans established by the task force pursuant to section 107 of this act.

(b) Presented to the governor, and upon approval by the governor, may be submitted by him in compliance with any program established by the Federal Government.

Sec. 113. NRS 523.151 is hereby amended to read as follows:

523.151 The [director] consumer’s advocate shall:

1. Prepare, subject to the approval of the governor, petroleum allocation and rationing plans for possible energy contingencies. The plans [shall] must be carried out only by executive order of the governor.

2. Carry out and administer any federal programs which authorize state participation in fuel allocation programs.

Sec. 114. NRS 523.161 is hereby amended to read as follows:

523.161 1. Except for those energy resources for [whose] which priorities of use are established by the public utilities commission of Nevada, the [director] consumer’s advocate may recommend to state agencies, local governments and appropriate private persons and entities, standards for conservation of energy and its sources and for carrying out the state plan for the conservation of energy.

2. In recommending such standards , the [director] consumer’s advocate shall consider the usage of energy and its sources in the state and the methods available for conservation of those sources.

Sec. 115. NRS 523.164 is hereby amended to read as follows:

523.164 1. The [director] consumer’s advocate shall adopt regulations for the conservation of energy in buildings, including manufactured homes, which establish the minimum standards for:

(a) The construction of floors, walls, ceilings and roofs;

(b) The equipment and systems for heating, ventilation and air-conditioning;

(d) Insulation; and

(e) Other factors which affect the use of energy in a building.

2. The [director] consumer’s advocate may exempt a building from a standard if he determines that application of the standard to the building would not accomplish the purpose of the regulations.

3. The regulations must authorize allowances in design and construction for [solar, wind or any other renewable source] :

(a) Sources of renewable energy used to supply all or a part of the energy required in a building [.] ; and

(b) Measures which conserve or reduce the demand for energy or which result in more efficient use of energy.

4. The standards adopted by the [director] consumer’s advocate are the minimum standards for the conservation of energy which apply only to areas in which the governing body of the local government has not adopted standards for the conservation of energy in buildings. Such governing bodies shall assist the [director] consumer’s advocate in the enforcement of the regulations adopted pursuant to this section.

5. The [director] consumer’s advocate shall solicit comments regarding the adoption of regulations pursuant to this section from:

(a) Persons in the business of constructing and selling homes;

(b) Contractors;

(d) Local building inspectors; and

(e) The general public,

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before adopting any regulations. The [director] consumer’s advocate must conduct at least three hearings in different locations in the state, after giving 30 days’ notice of each hearing, before he may adopt any regulations pursuant to this section.

Sec. 116. NRS 523.167 is hereby amended to read as follows:

523.167 1. In a county whose population is 100,000 or more, a building whose construction began on or after October 1, 1983, must not contain a system using electric resistance for heating spaces unless:

(a) The system is merely supplementary to another means of heating;

(b) Under the particular circumstances no other primary means of heating the spaces is a feasible or economical alternative to heating by electric resistance; or

(c) The [department] bureau determines that the present or future availability of other sources of energy is so limited as to justify the use of such a system.

2. This section does not prohibit the use of incandescent or fluorescent lighting.

Sec. 117. NRS 523.171 is hereby amended to read as follows:

523.171 The [director,] consumer’s advocate, in cooperation with the chief of the buildings and grounds division of the department of administration, shall, upon request, provide information and assistance to any agency, bureau, board, commission, department or division which is engaged in the management, planning, utilization and distribution of energy.

Sec. 118. NRS 523.181 is hereby amended to read as follows:

523.181 The [director] consumer’s advocate shall prepare a report concerning the status of energy in the State of Nevada and submit it to:

1. The governor on or before January 30 of each year; and

2. The legislature on or before January 30 of each odd-numbered year.

Sec. 119. Assembly Bill No. 369 of this session is hereby amended by adding thereto a new section designated sec. 15.5, following sec. 15, to read as follows:

Sec. 15.5. The provisions of sections 8 to 18, inclusive, of this act do not prohibit an electric utility from pledging, mortgaging, granting a security interest in or otherwise encumbering any of its generation assets or other property for the purpose of securing indebtedness of the electric utility which exists on the effective date of this act or which is issued or incurred by the electric utility after the effective date of this act in financing transactions approved by the commission.

Sec. 120. Section 33 of Assembly Bill No. 369 of this session is hereby amended to read as follows:

Sec. 33. The public utilities commission of Nevada shall:

1. Amend, modify, supplement, annul or vacate any order or directive issued by the commission before the effective date of this act that authorizes or requires an electric utility to dispose of any generation asset, if such disposal would violate the provisions of this act;

2. Take all appropriate action to request that the Federal Energy Regulatory Commission and any other officer, agency or department of the Federal Government:

(a) Not issue any order or directive that authorizes or requires an electric utility to dispose of any generation asset, if such an order or directive could be interpreted as being in conflict with or preempting the provisions of this act; and

(b) Amend, modify, supplement, annul or vacate any order or directive issued before, on or after the effective date of this act that authorizes or requires an electric utility to dispose of any generation asset, if such an order or directive could be interpreted as being in conflict with or preempting the provisions of this act;

3. If any action taken pursuant to subsection 2 is unsuccessful, take all appropriate legal action to challenge any order or directive issued by the Federal Energy Regulatory Commission or any other officer, agency or department of the Federal Government that authorizes or requires an electric utility to dispose of any generation asset, if such an order or directive could be interpreted as being in conflict with or preempting the provisions of this act; [and]

4. On or before October 1, 2001, adopt such revisions to its regulations concerning deferred accounting and deferred accounts as are required to carry out the provisions of this act; and

5. Take any other action or issue any other orders necessary to carry out the provisions of this act.

Sec. 121. Section 35 of Assembly Bill No. 369 of this session is hereby amended to read as follows:

Sec. 35. Except as otherwise provided in section 36 of this act and notwithstanding the provisions of any other specific statute to the contrary:

1. An electric utility shall not file an application for a fuel and purchased power rider on or after the effective date of this act.

2. Each application for a fuel and purchased power rider filed by an electric utility which is pending with the commission on the effective date of this act and which the electric utility did not place into effect before or on April 1, 2001, is void and unenforceable and is not valid for any purpose after April 1, 2001.

3. If, before March 1, 2001, an electric utility incurred any costs for fuel or purchased power, including, without limitation, any costs for fuel or purchased power recorded or carried on the books and records of the electric utility, and those costs were not recovered or could not be recovered pursuant to a fuel and purchased power rider placed into effect by the electric utility before March 1, 2001, the electric utility is not entitled, on or after March 1, 2001, to recover any of those costs for fuel or purchased power from customers, and the commission shall not allow the electric utility to recover any of those costs for fuel or purchased power from customers.

4. Except as otherwise provided in this section, on and after the effective date of this act:

(a) The commission shall not take any further action on the comprehensive energy plan, and each electric utility that jointly filed the comprehensive energy plan shall be deemed to have withdrawn the comprehensive energy plan;

(b) The rates that each electric utility placed into effect on March 1, 2001, pursuant to the comprehensive energy plan shall be deemed to be a component of the electric utility’s rates for fuel and purchased power; and

(c) The revenues [collected] for services provided by each electric utility [before April] for the period of March 1, 2001, to March 31, 2001, inclusive, from the rates that each electric utility placed into effect on March 1, 2001, pursuant to the comprehensive energy plan shall be deemed to be a credit in the electric utility’s deferred accounts.

5. On or before October 1, 2001, each electric utility that primarily serves densely populated counties shall file a general rate application pursuant to subsection 3 of NRS 704.110, as amended by this act [.] and Assembly Bill No. 661 of this session. On or before December 1, 2001, each electric utility that primarily serves densely populated counties shall file an application to clear its deferred accounts pursuant to subsection 7 of NRS 704.110, as amended by this act [.] and Assembly Bill No. 661 of this session. After such an electric utility files the application to clear its deferred accounts, the commission shall investigate and determine whether the rates that the electric utility placed into effect on March 1, 2001, pursuant to the comprehensive energy plan are just and reasonable and reflect prudent business practices. On the date on which the commission issues a final order on the general rate application, the commission shall issue a final order on the electric utility’s application to clear its deferred accounts. The total rates to provide electric service that were in effect on April 1, 2001, for the electric utility must remain in effect until the date on which the commission issues a final order on the general rate application. The commission shall not adjust the rates of the electric utility during this period unless such an adjustment is absolutely necessary to avoid rates that are confiscatory under the Constitution of the United States or the constitution of this state. The commission:

(a) May make such an adjustment only to the extent that it is absolutely necessary to avoid an unconstitutional result; and

(b) Shall not, in any proceedings concerning such an adjustment, approve any rate or grant any relief that is not absolutely necessary to avoid an unconstitutional result.

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After the electric utility files the general rate application that is required by this subsection, the electric utility shall file general rate applications in accordance with subsection 3 of NRS 704.110, as amended by this act [.] and Assembly Bill No. 661 of this session. After the electric utility files the application to clear its deferred accounts that is required by this subsection, the electric utility shall file applications to clear its deferred accounts in accordance with section 19 of this act and subsection 7 of NRS 704.110, as amended by this act [.] and Assembly Bill No. 661 of this session.

6. On or before December 1, 2001, each electric utility that primarily serves less densely populated counties shall file a general rate application pursuant to subsection 3 of NRS 704.110, as amended by this act [.] and Assembly Bill No. 661 of this session. On or before February 1, 2002, each electric utility that primarily serves less densely populated counties shall file an application to clear its deferred accounts pursuant to subsection 7 of NRS 704.110, as amended by this act [.] and Assembly Bill No. 661 of this session. After such an electric utility files the application to clear its deferred accounts, the commission shall investigate and determine whether the rates that the electric utility placed into effect on March 1, 2001, pursuant to the comprehensive energy plan are just and reasonable and reflect prudent business practices. On the date on which the commission issues a final order on the general rate application, the commission shall issue a final order on the electric utility’s application to clear its deferred accounts. The total rates to provide electric service that were in effect on April 1, 2001, for the electric utility must remain in effect until the date on which the commission issues a final order on the general rate application. The commission shall not adjust the rates of the electric utility during this period unless such an adjustment is absolutely necessary to avoid rates that are confiscatory under the Constitution of the United States or the constitution of this state. The commission:

(a) May make such an adjustment only to the extent that it is absolutely necessary to avoid an unconstitutional result; and

(b) Shall not, in any proceedings concerning such an adjustment, approve any rate or grant any relief that is not absolutely necessary to avoid an unconstitutional result.

Sec. 122. Section 36 of Assembly Bill No. 369 of this session is hereby amended to read as follows:

Sec. 36. Notwithstanding the provisions of any other specific statute to the contrary:

1. If, on or after January 1, 1999, and before the effective date of this act, an electric utility holding company entered into any transaction to acquire a controlling interest in a public utility that provides electric service primarily to customers located outside of this state, the electric utility holding company shall not carry out the transaction unless, on or after the effective date of this act:

(a) The electric utility holding company files with the commission an application for authorization of the transaction; and

(b) The commission issues a written order that authorizes the transaction. The commission shall not authorize the transaction unless the commission finds that the transaction will be in the public interest. The commission may base its authorization of the transaction upon such terms, conditions or modifications as the commission deems appropriate.

2. If the commission authorizes a transaction described in subsection 1 and, before July 1, 2003, the electric utility holding company acquires a controlling interest in such a public utility, or any affiliate thereof, pursuant to the transaction:

(a) Each electric utility in which the electric utility holding company holds a controlling interest shall not use deferred accounting pursuant to section 19 of this act on or after the date on which the electric utility holding company acquires a controlling interest in the public utility, or any affiliate thereof;

(b) Not later than 90 days after that date, each such electric utility shall file one final application to clear the remaining balance in its deferred accounts pursuant to subsection 7 of NRS 704.110, as amended by this act [;] and Assembly Bill No. 661 of this session;

(c) For each such electric utility, the commission shall not carry out the provisions of section 35 of this act concerning deferred accounting and deferred accounts; and

(d) The commission shall carry out the remaining provisions of section 35 of this act, including, without limitation, the commission’s investigation and determination whether the rates that each electric utility placed into effect on March 1, 2001, pursuant to the comprehensive energy plan are just and reasonable and reflect prudent business practices.

3. Any transaction that violates the provisions of this section is void and unenforceable and is not valid for any purpose.

Sec. 123. Section 7 of Senate Bill No. 203 of this session is hereby amended to read as follows:

Sec. 7. NRS 354.59811 is hereby amended to read as follows:

354.59811 1. Except as otherwise provided in NRS 354.59813, 354.59815, 354.5982, 354.5987, 354.59871, 354.705, 354.723, 450.425, 450.760, 540A.265 and 543.600, and section 4 of this act, for each fiscal year beginning on or after July 1, 1989, the maximum amount of money that a local government, except a school district, a district to provide a telephone number for emergencies, or a redevelopment agency, may receive from taxes ad valorem, other than those attributable to the net proceeds of minerals or those levied for the payment of bonded indebtedness and interest thereon incurred as general long-term debt of the issuer, or for the payment of obligations issued to pay the cost of a water project pursuant to NRS 349.950, or for the payment of obligations issued to pay the cost of a renewable energy generation project pursuant to section 87 of [this act,] Assembly Bill No. 661 of this session, or for the payment of obligations under a capital lease executed before April 30, 1981, must be calculated as follows:

2. As used in this section, “general long-term debt” does not include debt created for medium-term obligations pursuant to NRS 350.085 to 350.095, inclusive.

Sec. 124. 1. NRS 704.080, 704.090 and 704.275 are hereby repealed.

2. Section 10 of Assembly Bill No. 369 of this session is hereby repealed.

Sec. 125. 1. For the purposes of sections 3 to 26, inclusive, of this act:

(a) An electric utility that provides distribution services to an eligible customer who is purchasing energy, capacity or ancillary services from a provider of new electric resources shall charge the eligible customer based upon the rates for the electric utility’s distribution services that were on file with the commission on April 1, 2001, until the commission approves a change in those rates and such a change becomes effective.

(b) Not later than March 1, 2002, the commission shall establish the initial rates for all other components of electric service which are within the jurisdiction of the commission and which are necessary for a provider of new electric resources to sell energy, capacity and ancillary services to an eligible customer pursuant to the provisions of sections 3 to 26, inclusive, of this act. The commission may establish such initial rates as a part of a general rate application that is pending or filed with the commission on or after the effective date of this act.

2. The commission shall:

(a) Not later than November 1, 2001, adopt regulations to carry out and enforce the provisions of sections 3 to 26, inclusive, of this act.

(b) Not later than March 1, 2002, approve tariffs to carry out and enforce the provisions of section 22 of this act.

3. Notwithstanding the provisions of section 25 of this act, the commission is not required to submit a report to the legislative commission for any calendar quarter that ends before October 1, 2001.

4. As used this section, the words and terms defined in sections 4 to 16, inclusive, of this act have the meanings ascribed to them in those sections.

Sec. 126. 1. As soon as practicable after the effective date of this act, the governor shall appoint two additional commissioners to the public utilities commission of Nevada as required by the provisions of this act. For the initial terms of those commissioners, the governor shall appoint:

(a) One commissioner whose term begins on October 1, 2001, and expires on September 30, 2003; and

(b) One commissioner whose term begins on October 1, 2001, and expires on September 30, 2004.

2. The provisions of this act do not abrogate or affect the term of office of any other commissioner of the public utilities commission of Nevada.

Sec. 127. 1. Notwithstanding the provisions of this act and except as otherwise provided in subsection 2, the department of business and industry and its director shall exercise all the power and perform all the duties that are assigned to the consumer’s advocate of the bureau of consumer protection in the office of the attorney general pursuant to the provisions of chapter 523 of NRS, as amended by this act, until the date on which the attorney general certifies to the governor that the consumer’s advocate is prepared to carry out those provisions, or until January 1, 2002, whichever occurs earlier.

2. During the period described in subsection 1, the consumer’s advocate may exercise any power and perform any duty assigned to him pursuant to the provisions of chapter 523 of NRS, as amended by this act, if the exercise of the power or the performance of the duty is necessary as an organizational, preparatory or preliminary measure to prepare the consumer’s advocate to carry out those provisions.

Sec. 128. 1. Any administrative regulations adopted by an officer or an agency whose name has been changed or whose responsibilities have been transferred pursuant to the provisions of this act to another officer or agency remain in force until amended by the officer or agency to which the responsibility for the adoption of the regulations has been transferred.

2. Any contracts or other agreements entered into by an officer or agency whose name has been changed or whose responsibilities have been transferred pursuant to the provisions of this act to another officer or agency are binding upon the officer or agency to which the responsibility for the administration of the provisions of the contract or other agreement has been transferred. Such contracts and other agreements may be enforced by the officer or agency to which the responsibility for the enforcement of the provisions of the contract or other agreement has been transferred.

3. Any action taken by an officer or agency whose name has been changed or whose responsibilities have been transferred pursuant to the provisions of this act to another officer or agency remains in effect as if taken by the officer or agency to which the responsibility for the enforcement of such actions has been transferred.

Sec. 129. 1. As soon as practicable after the effective date of this act, the appointing authorities set forth in section 105 of this act shall appoint members to the task force for renewable energy and energy conservation that is created by that section.

2. The initial appointed members of the task force shall, at the first meeting of the task force after their appointment, draw lots to determine which:

(a) Five members of the board will serve initial terms that expire on June 30, 2004.

(b) Four members of the board will serve initial terms that expire on June 30, 2003.

Sec. 130. 1. This section and sections 1 to 27, inclusive, 29, 31 to 129, inclusive, and 131 of this act become effective upon passage and approval.

2. Sections 28 and 30 of this act become effective on October 1, 2001.

Sec. 131. 1. The legislative counsel shall:

(a) In preparing the reprint and supplements to the Nevada Revised Statutes, appropriately change any references to an officer or agency whose name is changed or whose responsibilities have been transferred pursuant to the provisions of this act to refer to the appropriate officer or agency.

(b) In preparing supplements to the Nevada Administrative Code, appropriately change any references to an officer or agency whose name is changed or whose responsibilities have been transferred pursuant to the provisions of this act to refer to the appropriate officer or agency.

2. Any reference in a bill or resolution passed by the 71st session of the Nevada legislature to an officer or agency whose name is changed or whose responsibilities have been transferred pursuant to the provisions of this act to another officer or agency shall be deemed to refer to the officer or agency to which the responsibility is transferred.

TEXT OF REPEALED SECTIONS

704.080 Printing and posting of schedules. A copy, or so much of the schedule as the commission shall deem necessary for the use of the public, shall be printed in plain type and posted in every station or office of such public utility where payments are made by the consumers or users, open to the public, in such form and place as to be readily accessible to the public and conveniently inspected.

704.090 Schedule of joint rates: Filing; printing; posting. When a schedule of joint rates or charges is or may be in force between two or more public utilities, such schedule shall, in like manner, be printed and filed with the commission, and so much thereof as the commission may deem necessary for the use of the public shall be posted conspicuously in every station or office as provided in NRS 704.080.

704.275 Powers of commission: Standards for requiring hearing on telephone rates. The commission shall determine whether a hearing must be held when the proposed change by a public utility furnishing telephone service in any schedule stating a new or revised individual or joint rate or charge, or any new or revised individual or joint regulation or practice affecting any rate or charge, will result in an increase in annual gross revenue as certified by the applicant of $50,000 or 10 percent of the applicant’s gross revenue, whichever is less.

Section 10 of Assembly Bill No. 369 of this session:

Sec. 10. “Consumer’s advocate” means the consumer’s advocate of the bureau of consumer protection in the office of the attorney general.”.

Amend the title of the bill to read as follows:

“AN ACT relating to energy; authorizing certain eligible customers to purchase electrical energy, capacity and certain ancillary services from providers of new electric resources; revising and repealing various provisions concerning the regulation of public utilities and the process of establishing and changing rates; expanding the public utilities commission of Nevada from three to five members; revising provisions relating to the employees and operations of the commission; requiring the commission to adopt certain regulations relating to the termination of utility service; enacting various provisions concerning contracts for the purchase of power and the construction and operation of electric generating units; providing for the levy of an assessment on certain electric generating units; revising the authority of the commission to regulate mergers, acquisitions and certain other transactions involving public utilities and other entities; making various changes with respect to net metering; establishing a program for the issuance of bonds to pay the cost of renewable energy generation projects; creating the task force for renewable energy and prescribing its membership and duties; creating the trust fund for renewable energy; transferring control of the Nevada state energy office from the director of the department of business and industry to the bureau of consumer protection in the office of the attorney general; and providing other matters properly relating thereto.”.