Assembly Bill No. 429–Assemblymen Hettrick, Hardy, Geddes, Knecht, Beers, Brown, Goicoechea, Grady, Griffin, Gustavson, Mabey, Marvel and Sherer

 

March 17, 2003

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Makes various changes relating to net metering and renewable energy. (BDR 58‑779)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to energy; making various changes relating to net metering and renewable energy; authorizing the Director of the Office of Energy within the Office of the Governor to develop a program to distribute money in the form of grants, incentives or rebates to pay or defray the costs for persons to acquire, install or improve net metering systems; revising provisions governing the regulation of net metering; revising the definition of renewable energy to include waterpower for the purposes of the portfolio standard for renewable energy for certain providers of electric service and for net metering and optional pricing; transferring money from the Public Utilities Commission Regulatory Fund to the Office of Energy; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. Chapter 701 of NRS is hereby amended by adding

1-2  thereto the provisions set forth as sections 2 and 3 of this act.

1-3  Sec. 2.  “Net metering system” has the meaning ascribed to it

1-4  in NRS 704.771.

1-5  Sec. 3.  1.  The Director shall develop a program to

1-6  distribute money, within the limits of legislative appropriation, in

2-1  the form of grants, incentives or rebates to persons to pay or

2-2  defray, in whole or in part, the costs for those persons to acquire,

2-3  install or improve net metering systems, if the Director determines

2-4  that the distribution of money to a person for that purpose will

2-5  encourage, promote or stimulate:

2-6  (a) The development or use of sources of renewable energy in

2-7  the State or the development of industries or technologies that use

2-8  sources of renewable energy in the State;

2-9  (b) The conservation of energy in the State, the diversification

2-10  of the types of energy used in the State or any reduction in the

2-11  dependence of the State on foreign sources of energy;

2-12      (c) The protection of the natural resources of the State or the

2-13  improvement of the environment;

2-14      (d) The enhancement of existing utility facilities or any other

2-15  infrastructure in the State or the development of new utility

2-16  facilities or any other infrastructure in the State; or

2-17      (e) The investment of capital or the expansion of business

2-18  opportunities in the State or any growth in the economy of the

2-19  State.

2-20      2.  The Director may adopt any regulations that are necessary

2-21  to carry out the provisions of this section.

2-22      3.  The Director shall not distribute money to any person

2-23  pursuant to this section unless:

2-24      (a) The person complies with any requirements that the

2-25  Director adopts by regulation; and

2-26      (b) The distribution of the money is consistent with one or

2-27  more of the public purposes set forth in paragraphs (a) to (e),

2-28  inclusive, of subsection 1.

2-29      4.  As used in this section, “person” includes, without

2-30  limitation, any state or local governmental agency or entity.

2-31      Sec. 4.  NRS 701.020 is hereby amended to read as follows:

2-32      701.020  As used in this chapter, unless the context otherwise

2-33  requires, the words and terms defined in NRS 701.030 to 701.090,

2-34  inclusive, and section 2 of this act have the meanings ascribed to

2-35  them in those sections.

2-36      Sec. 5.  NRS 701.380 is hereby amended to read as follows:

2-37      701.380  1.  The Task Force shall:

2-38      (a) Advise the Office of Energy in [the] :

2-39          (1) The development and periodic review of the

2-40  comprehensive state energy plan with regard to the use of renewable

2-41  energy and the use of measures which conserve or reduce the

2-42  demand for energy or which result in more efficient use of energy.

2-43          (2) The distribution of money to persons pursuant to

2-44  section 3 of this act to pay or defray, in whole or in part, the costs

3-1  for those persons to acquire, install or improve net metering

3-2  systems.

3-3  (b) Coordinate its activities and programs with the activities and

3-4  programs of the Office of Energy, the Consumer’s Advocate and the

3-5  Public Utilities Commission of Nevada and other federal, state and

3-6  local officers and agencies that promote, fund, administer or operate

3-7  activities and programs related to the use of renewable energy and

3-8  the use of measures which conserve or reduce the demand for

3-9  energy or which result in more efficient use of energy.

3-10      (c) Spend the money in the Trust Fund for Renewable Energy

3-11  and Energy Conservation to:

3-12          (1) Educate persons and entities concerning renewable

3-13  energy and measures which conserve or reduce the demand for

3-14  energy or which result in more efficient use of energy.

3-15          (2) Create incentives for investment in and the use of

3-16  renewable energy and measures which conserve or reduce the

3-17  demand for energy or which result in more efficient use of energy.

3-18          (3) Distribute grants and other money to establish programs

3-19  and projects which incorporate the use of renewable energy and

3-20  measures which conserve or reduce the demand for energy or which

3-21  result in more efficient use of energy.

3-22          (4) Conduct feasibility studies, including, without limitation,

3-23  [a feasibility study] any feasibility studies concerning the

3-24  establishment or expansion of [an incentive fund,] any grants ,

3-25  incentives, rebates or other programs to enable or assist [residential,

3-26  small commercial and agricultural customers] persons to reduce the

3-27  cost of purchasing on-site generation systems, net metering systems

3-28  and distributed generation systems that use renewable energy.

3-29      (d) Take any other actions that the Task Force deems necessary

3-30  to carry out its duties, including, without limitation, contracting with

3-31  consultants, if necessary, for the purposes of program design or to

3-32  assist the Task Force in carrying out its duties.

3-33      2.  The Task Force shall prepare an annual report concerning its

3-34  activities and programs and submit the report to the Legislative

3-35  Commission and the Governor on or before January 30 of each year.

3-36  The annual report must include, without limitation:

3-37      (a) A description of the objectives of each activity and program;

3-38      (b) An analysis of the effectiveness and efficiency of each

3-39  activity and program in meeting the objectives of the activity or

3-40  program;

3-41      (c) The amount of money distributed for each activity and

3-42  program from the Trust Fund for Renewable Energy and Energy

3-43  Conservation and a detailed description of the use of that money for

3-44  each activity and program;

4-1  (d) An analysis of the coordination between the Task Force and

4-2  other officers and agencies; and

4-3  (e) Any changes planned for each activity and program.

4-4  3.  As used in this section[:

4-5  (a) “Distributed] , “distributed generation system” means a

4-6  facility or system for the generation of electricity that is in close

4-7  proximity to the place where the electricity is consumed.

4-8  [(b) “Net metering system” has the meaning ascribed to it in

4-9  NRS 704.771.]

4-10      Sec. 6.  NRS 704.771 is hereby amended to read as follows:

4-11      704.771  “Net metering system” means a facility or energy

4-12  system for the generation of electricity that:

4-13      1.  Uses renewable energy as its primary source of energy to

4-14  generate electricity;

4-15      2.  Has a generating capacity of not more than [10 kilowatts;]

4-16  30 kilowatts and a customer load of not more than 30 kilowatts;

4-17      3.  Is located on the customer-generator’s premises;

4-18      4.  Operates in parallel with the utility’s transmission and

4-19  distribution facilities; and

4-20      5.  Is intended primarily to offset part or all of the customer-

4-21  generator’s requirements for electricity.

4-22      Sec. 7.  NRS 704.775 is hereby amended to read as follows:

4-23      704.775  1.  The billing period for net metering [may be

4-24  either] must be on a monthly [period or, with the written consent of

4-25  the customer-generator, an annual period.] basis.

4-26      2.  The net energy measurement must be calculated in the

4-27  following manner:

4-28      (a) The utility shall measure the net electricity produced or

4-29  consumed during the billing period, in accordance with normal

4-30  metering practices.

4-31      (b) If the electricity supplied by the utility exceeds the electricity

4-32  generated by the customer-generator which is fed back to the utility

4-33  during the billing period, the customer-generator must be billed for

4-34  the net electricity supplied by the utility.

4-35      (c) If the electricity generated by the customer-generator which

4-36  is fed back to the utility exceeds the electricity supplied by the

4-37  utility during the billing period:

4-38          (1) Neither the utility nor the customer-generator is entitled

4-39  to compensation for electricity provided to the other during the

4-40  billing period; and

4-41          (2) The excess electricity which is fed back to the utility shall

4-42  be deemed to be electricity that the utility generated or acquired

4-43  from a renewable energy system for the purposes of complying with

4-44  its portfolio standard pursuant to NRS 704.7801 to 704.7828,

4-45  inclusive.

5-1  Sec. 8.  NRS 704.7811 is hereby amended to read as follows:

5-2  704.7811  1.  “Renewable energy” means:

5-3  (a) Biomass;

5-4  (b) Geothermal energy;

5-5  (c) Solar energy; [and]

5-6  (d) Waterpower; and

5-7  (e) Wind.

5-8  2.  The term does not include coal, natural gas, oil, propane or

5-9  any other fossil fuel, or nuclear energy.

5-10      Sec. 9.  If, on or after January 1, 2003, but before the effective

5-11  date of this act, a provider of electric service generated or acquired

5-12  any kilowatt-hours of electricity from a renewable energy system

5-13  that uses waterpower to generate electricity, and the provider sold

5-14  those kilowatt-hours to its retail customers in this state during

5-15  calendar year 2003, the provider may use those kilowatt-hours for

5-16  the purposes of NRS 704.7801 to 704.7828, inclusive, as amended

5-17  by this act, and the regulations adopted pursuant thereto, to comply

5-18  with its portfolio standard for renewable energy for calendar year

5-19  2003.

5-20      Sec. 10.  1.  Not later than 30 days after the effective date of

5-21  this act, the Public Utilities Commission of Nevada shall transfer the

5-22  sum of $250,000 from its reserve account in the Public Utilities

5-23  Commission Regulatory Fund, created by NRS 703.147, to an

5-24  account in the State General Fund for use by the Director of the

5-25  Office of Energy within the Office of the Governor to carry out the

5-26  provisions of section 3 of this act.

5-27      2.  The Director of the Office of Energy shall use the money

5-28  transferred pursuant to this section only for the purposes set forth in

5-29  section 3 of this act.

5-30      Sec. 11.  This act becomes effective upon passage and

5-31  approval.

 

5-32  H