S 1016 ISCommentsClose CommentsPermalink

To amend the Public Utility Regulatory Policies Act of 1978 to promote energy independence and self-sufficiency by providing for the use of net metering by certain small electric energy generation systems, and for other purposes.CommentsClose CommentsPermalink

March 28, 2007

Mr. MENENDEZ introduced the following bill; which was read twice and referred to the Committee on Energy and Natural ResourcesCommentsClose CommentsPermalink

To amend the Public Utility Regulatory Policies Act of 1978 to promote energy independence and self-sufficiency by providing for the use of net metering by certain small electric energy generation systems, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the `Solar Opportunity and Local Access Rights Act'.CommentsClose CommentsPermalink

SEC. 2. NET METERING AND INTERCONNECTION STANDARDS.

(a) In General- Section 113 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2623) is amended by adding at the end the following:CommentsClose CommentsPermalink





`(d) Net Metering-CommentsClose CommentsPermalink





`(1) DEFINITIONS- In this subsection and subsection (e):CommentsClose CommentsPermalink





`(A) CUSTOMER-GENERATOR- The term `customer-generator' means the owner or operator of a qualified generation unit.CommentsClose CommentsPermalink





`(B) ELECTRIC GENERATION UNIT- The term `electric generation unit' means--CommentsClose CommentsPermalink





`(i) a qualified generation unit; andCommentsClose CommentsPermalink





`(ii) any electric generation unit that qualifies for net metering under a net metering tariff or rule approved by a State.CommentsClose CommentsPermalink





`(C) LOCAL DISTRIBUTION SYSTEM- The term `local distribution system' means any system for the distribution of electric energy to the ultimate consumer of the electricity, whether or not the owner or operator of the system is a retail electric supplier.CommentsClose CommentsPermalink





`(D) NET METERING- The term `net metering' means the process of--CommentsClose CommentsPermalink





`(i) measuring the difference between the electricity supplied to a customer-generator and the electricity generated by the customer-generator that is delivered to a local distribution system at the same point of interconnection during an applicable billing period; andCommentsClose CommentsPermalink





`(ii) providing an energy credit to the customer-generator in the form of a kilowatt-hour credit for each kilowatt-hour of energy produced by the customer-generator from a qualified generation unit.CommentsClose CommentsPermalink





`(E) QUALIFIED GENERATION UNIT- The term `qualified generation unit' means an electric energy generation unit that--CommentsClose CommentsPermalink





`(i) is a fuel cell or uses as the energy source of the unit solar energy, wind, biomass, geothermal energy, anaerobic digestion, or landfill gas, or a combination of the any of those sources;CommentsClose CommentsPermalink





`(ii) has a generating capacity of not more than 2,000 kilowatts;CommentsClose CommentsPermalink





`(iii) is located on premises that are owned, operated, leased, or otherwise controlled by the customer-generator;CommentsClose CommentsPermalink





`(iv) operates in parallel with the retail electric supplier; andCommentsClose CommentsPermalink





`(v) is intended primarily to offset all or part of the requirements of the customer-generator for electric energy.CommentsClose CommentsPermalink





`(F) RETAIL ELECTRIC SUPPLIER- The term `retail electric supplier' means any electric utility that sells electric energy to the ultimate consumer of the energy.CommentsClose CommentsPermalink





`(2) ADOPTION- Not later than 1 year after the date of enactment of this subsection, each State regulatory authority (with respect to each electric utility for which the State regulatory authority has ratemaking authority), and each nonregulated electric utility, shall--CommentsClose CommentsPermalink





`(A) provide public notice and conduct a hearing with respect to the standards established under paragraph (3); andCommentsClose CommentsPermalink





`(B) on the basis of the hearing, adopt the standard.CommentsClose CommentsPermalink





`(3) ESTABLISHMENT OF NET METERING STANDARD-CommentsClose CommentsPermalink





`(A) IN GENERAL- Each retail electric supplier shall offer to arrange (either directly or through a local distribution company or other third party) to make net metering available, on a first-come, first-served basis, to each of the retail customers of the retail electric supplier in accordance with the requirements described in subparagraph (B) and other provisions of this subsection.CommentsClose CommentsPermalink





`(B) REQUIREMENTS- The requirements referred to in subparagraph (A) are, with respect to a retail electric supplier, that--CommentsClose CommentsPermalink





`(i) rates and charges and contract terms and conditions for the sale of electric energy to customer-generators shall be the same as the rates and charges and contract terms and conditions that would be applicable if the customer-generator did not own or operate a qualified generation unit and use a net metering system; andCommentsClose CommentsPermalink





`(ii) each retail electric supplier shall notify all of the retail customers of the retail electric supplier of the standard established under this paragraph as soon as practicable after the adoption of the standard.CommentsClose CommentsPermalink





`(4) NET ENERGY MEASUREMENT-CommentsClose CommentsPermalink





`(A) IN GENERAL- Each retail electric supplier shall arrange to provide to customer-generators who qualify for net metering under subsection (b) an electrical energy meter capable of net metering and measuring, to the maximum extent practicable, the flow of electricity to or from the customer, using a single meter and single register.CommentsClose CommentsPermalink





`(B) IMPRACTICABILITY- In a case in which it is not practicable to provide a meter to a customer-generator under subparagraph (A), a retail electric supplier (either directly or through a local distribution company or other third party) shall, at the expense of the retail electric supplier, install 1 or more of those electric energy meters for the customer-generators concerned.CommentsClose CommentsPermalink





`(5) BILLING-CommentsClose CommentsPermalink





`(A) IN GENERAL- Each retail electric supplier subject to subsection (b) shall calculate the electric energy consumption for a customer using a net metering system in accordance with subparagraphs (B) through (D).CommentsClose CommentsPermalink





`(B) MEASUREMENT OF ELECTRICITY- The retail electric supplier shall measure the net electricity produced or consumed during the billing period using the metering installed in accordance with paragraph (4).CommentsClose CommentsPermalink





`(C) BILLING AND CREDITING-CommentsClose CommentsPermalink





`(i) BILLING- If the electricity supplied by the retail electric supplier exceeds the electricity generated by the customer-generator during the billing period, the customer-generator shall be billed for the net electric energy supplied by the retail electric supplier in accordance with normal billing practicesCommentsClose CommentsPermalink





`(ii) CREDITING-CommentsClose CommentsPermalink





`(I) IN GENERAL- If electric energy generated by the customer-generator exceeds the electric energy supplied by the retail electric supplier during the billing period, the customer-generator shall be billed for the appropriate customer charges for that billing period and credited for the excess electric energy generated during the billing period, with the credit appearing as a kilowatt-hour credit on the bill for the following billing period.CommentsClose CommentsPermalink





`(II) APPLICATION OF CREDITS- Any kilowatt-hour credits provided to a customer-generator under this clause shall be applied to customer-generator electric energy consumption on the following billing period bill (except for a billing period that ends in the next calendar year).CommentsClose CommentsPermalink





`(III) CARRYOVER OF UNUSED CREDITS- At the beginning of each calendar year, any unused kilowatt-hour credits remaining from the preceding year will carry over to the new year.CommentsClose CommentsPermalink





`(D) USE OF TIME-DIFFERENTIATED RATES-CommentsClose CommentsPermalink





`(i) IN GENERAL- Except as provided in clause (ii), if a customer-generator is using a meter and retail billing arrangement that has time-differentiated rates--CommentsClose CommentsPermalink





`(I) the kilowatt-hour credit shall be based on the ratio representing the difference in retail rates for each time-of-use rate; orCommentsClose CommentsPermalink





`(II) the credits shall be reflected on the bill of the customer-generator as a monetary credit reflecting retail rates at the time of generation of the electric energy by the customer-generator.CommentsClose CommentsPermalink





`(ii) DIFFERENT TARIFFS OR SERVICES- A retail electric supplier shall offer a customer-generator the choice of a time-differentiated energy tariff rate or a nontime-differentiated energy tariff rate, if the retail electric supplier offers the choice to customers in the same rate class as the customer-generator.CommentsClose CommentsPermalink





`(6) PERCENT LIMITATIONS-CommentsClose CommentsPermalink





`(A) 4 PERCENT LIMITATION- The standard established under this subsection shall not apply for a calendar year in the case of a customer-generator served by a local distribution company if the total generating capacity of all customer-generators with net metering systems served by the local distribution company in the calendar year is equal to or more than 4 percent of the capacity necessary to meet the average forecasted aggregate customer peak demand of the company for the calendar year.CommentsClose CommentsPermalink





`(B) 2 PERCENT LIMITATION- The standard established under this subsection shall not apply for a calendar year in the case of a customer-generator served by a local distribution company if the total generating capacity of all customer-generators with net metering systems served by the local distribution company in the calendar year using a single type of qualified generation units (as described in paragraph (1)(D)(i)) is equal to or more than 2 percent of the capacity necessary to meet the average forecasted aggregate customer peak demand of the company for the calendar year.CommentsClose CommentsPermalink





`(C) RECORDS AND NOTICE-CommentsClose CommentsPermalink





`(i) RECORDS- Each retail electric supplier shall maintain, and make available to the public, records of--CommentsClose CommentsPermalink





`(I) the total generating capacity of customer-generators of the system of the retail electric supplier that are using net metering; andCommentsClose CommentsPermalink





`(II) the type of generating systems and energy source used by the electric generating systems used by the customer-generators.CommentsClose CommentsPermalink





`(ii) NOTICE- Each such retail electric supplier shall notify the State regulatory authority and the Commission at each time at which the total generating capacity of the customer-generators of the retail electric supplier reaches a level that equals or exceeds--CommentsClose CommentsPermalink





`(I) 75 percent of the limitation specified in subparagraph (B); orCommentsClose CommentsPermalink





`(II) the limitation specified in subparagraph (B).CommentsClose CommentsPermalink





`(7) OWNERSHIP OF CREDITS-CommentsClose CommentsPermalink





`(A) IN GENERAL- For purposes of Federal and State laws providing renewable energy credits or greenhouse gas credits, a customer-generator with a qualified generation unit and net metering shall be treated as owning and having title to the renewable energy attributes, renewable energy credits and greenhouse gas emission credits relating to any electricity produced by the qualified generation unit.CommentsClose CommentsPermalink





`(B) RETAIL ELECTRIC SUPPLIERS- No retail electric supplier shall claim title to or ownership of any renewable energy attributes, renewable energy credits, or greenhouse gas emission credits of a customer-generator as a result of interconnecting the customer-generator or providing or offering the customer-generator net metering.CommentsClose CommentsPermalink





`(8) SAFETY AND PERFORMANCE STANDARDS-CommentsClose CommentsPermalink





`(A) IN GENERAL- A qualified generation unit and net metering system used by a customer-generator shall meet all applicable safety and performance and reliability standards established by--CommentsClose CommentsPermalink





`(i) the national electrical code;CommentsClose CommentsPermalink





`(ii) the Institute of Electrical and Electronics Engineers;CommentsClose CommentsPermalink





`(iii) Underwriters Laboratories; orCommentsClose CommentsPermalink





`(iv) the American National Standards Institute.CommentsClose CommentsPermalink





`(B) ADDITIONAL CHARGES- The Commission shall, after consultation with State regulatory authorities and nonregulated local distribution systems and after notice and opportunity for comment, prohibit by regulation the imposition of additional charges by retail electric suppliers and local distribution systems for equipment or services for safety or performance that are in addition to those necessary to meet the standards and requirements referred to in subparagraph (A) and subsection (e).CommentsClose CommentsPermalink





`(9) DETERMINATION OF COMPLIANCE-CommentsClose CommentsPermalink





`(A) IN GENERAL- Any State regulatory authority (with respect to each electric utility for which the authority has ratemaking authority), and each nonregulated electric utility, may apply to the Commission for a determination that any State net metering requirement or regulations complies with this subsection.CommentsClose CommentsPermalink





`(B) ORDERS- In the absence of a determination under subparagraph (A), the Commission, on the motion of the Commission or pursuant to the petition of any interested person, may, after notice and opportunity for a hearing on the record, issue an order requiring against any retail electric supplier or local distribution company to require compliance with this subsection.CommentsClose CommentsPermalink





`(C) PENALTIES-CommentsClose CommentsPermalink





`(i) IN GENERAL- Any person who violates this subsection or any order of the Commission under this subsection shall be subject to a civil penalty in the amount of $10,000 for each day that the violation continues.CommentsClose CommentsPermalink





`(ii) ASSESSMENT- The penalty may be assessed by the Commission, after notice and opportunity for hearing, in the same manner as penalties are assessed under section 31(d) of the Federal Power Act (16 U.S.C. 823b(d)).CommentsClose CommentsPermalink





`(e) Interconnection Standards-CommentsClose CommentsPermalink





`(1) MODEL STANDARDS-CommentsClose CommentsPermalink





`(A) IN GENERAL- Not later than 1 year after the date of enactment of this subsection, the Commission shall publish model standards for the physical connection between local distribution systems and qualified generation units and electric generation units that--CommentsClose CommentsPermalink





`(i) are qualified generation units (as defined in subsection (d)(1)(D) (other than clause (ii) of subsection (d)(1)(D)); andCommentsClose CommentsPermalink





`(ii) do not exceed 20,000 kilowatts of capacity.CommentsClose CommentsPermalink





`(B) PURPOSES- The model standards shall be designed to--CommentsClose CommentsPermalink





`(i) encourage the use of qualified generation units; andCommentsClose CommentsPermalink





`(ii) ensure the safety and reliability of the qualified generation units and the local distribution systems interconnected with the qualified generation units.CommentsClose CommentsPermalink





`(C) EXPEDITED PROCEDURES-CommentsClose CommentsPermalink





`(i) IN GENERAL- The model standards shall have 2 separate expedited procedures, including--CommentsClose CommentsPermalink





`(I) a standard for interconnecting qualified generation units of not more than 15 kilowatts; andCommentsClose CommentsPermalink





`(II) a separate standard that expedites interconnection for qualified generation units of more than 15 kilowatts but not more than 2,000 kilowatts.CommentsClose CommentsPermalink





`(ii) BEST PRACTICES- The expedited procedures shall be based on the best practices that have been used in States that have adopted interconnection standards.CommentsClose CommentsPermalink





`(iii) MODEL RULE- In designing the expedited procedures, the Commission shall consider Interstate Renewable Energy Council Model Rule MR-I2005.CommentsClose CommentsPermalink





`(D) ADOPTION OF STANDARDS-CommentsClose CommentsPermalink





`(i) IN GENERAL- Not later than 2 years after the date of enactment of this subsection, each State shall--CommentsClose CommentsPermalink





`(I) adopt the model standards established under this paragraph, with or without modification; andCommentsClose CommentsPermalink





`(II) submit the standards to the Commission for approval.CommentsClose CommentsPermalink





`(ii) APPROVAL OF MODIFICATION- The Commission shall approve a modification of the model standards only if the Commission determines that the modification is--CommentsClose CommentsPermalink





`(I) consistent with or superior to the purpose of the standards; andCommentsClose CommentsPermalink





`(II) required by reason of local conditions.CommentsClose CommentsPermalink





`(E) NONAPPROVAL OF STANDARDS FOR A STATE- If standards have not been approved under this paragraph by the Commission for any State during the 2-year period beginning on the date of enactment of this subsection, the Commission shall, by rule or order, enforce the model standards of the Commission in the State until such time as State standards are approved by the Commission.CommentsClose CommentsPermalink





`(F) UPDATES-CommentsClose CommentsPermalink





`(i) IN GENERAL- Not later than 2 years after the date of enactment of this subsection and after notice and opportunity for comment, the Commission shall publish an update of the model standards, after considering changes in the underlying standards and technologies.CommentsClose CommentsPermalink





`(ii) AVAILABILITY- The updates shall be made available to State regulatory authorities for the consideration of the authorities.CommentsClose CommentsPermalink





`(2) SAFETY, RELIABILITY, PERFORMANCE, AND COST-CommentsClose CommentsPermalink





`(A) IN GENERAL- The standards under this subsection shall establish such measures for the safety and reliability of the affected equipment and local distribution systems as are appropriate.CommentsClose CommentsPermalink





`(B) ADMINISTRATION- The standards shall--CommentsClose CommentsPermalink





`(i) be consistent with all applicable safety and performance standards established by--CommentsClose CommentsPermalink





`(I) the national electrical code;CommentsClose CommentsPermalink





`(II) the Institute of Electrical and Electronics Engineers;CommentsClose CommentsPermalink





`(III) Underwriters Laboratories; orCommentsClose CommentsPermalink





`(IV) the American National Standards Institute; andCommentsClose CommentsPermalink





`(ii) impose not more than such minimum cost and technical burdens to the interconnecting customer generator as the Commission determines, by rule, are practicable.CommentsClose CommentsPermalink





`(3) ADDITIONAL CHARGES- The model standards under this subsection shall prohibit the imposition of additional charges by local distribution systems for equipment or services for interconnection that are in excess of--CommentsClose CommentsPermalink





`(A) the charges necessary to meet the standards; andCommentsClose CommentsPermalink





`(B) the charges and equipment requirements identified in the best practices of States with interconnection standards.CommentsClose CommentsPermalink





`(4) RELATIONSHIP TO EXISTING LAW REGARDING INTERCONNECTION- Nothing in this subsection affects the application of section 111(d)(15) relating to interconnection.CommentsClose CommentsPermalink





`(5) CONSUMER-FRIENDLY CONTRACTS-CommentsClose CommentsPermalink





`(A) IN GENERAL- The Commission shall--CommentsClose CommentsPermalink





`(i) promulgate regulations that ensure that simplified contracts will be used for the interconnection of electric energy by electric energy transmission or local distribution systems and generating facilities that have a power production capacity of not greater than 2,000 kilowatts; andCommentsClose CommentsPermalink





`(ii) consider the best practices for consumer-friendly contracts that are used by States or national associations of State regulators.CommentsClose CommentsPermalink





`(B) LIABILITY OR INSURANCE- The contracts shall not require liability or other insurance in excess of the liability or insurance that is typically carried by customer-generators for general liability.CommentsClose CommentsPermalink





`(6) ENFORCEMENT-CommentsClose CommentsPermalink





`(A) IN GENERAL- Any person who violates this subsection shall be subject to a civil penalty in the amount of $10,000 for each day that the violation continues.CommentsClose CommentsPermalink





`(B) ASSESSMENT- The penalty may be assessed by the Commission, after notice and opportunity for hearing, in the same manner as penalties are assessed under section 31(d) of the Federal Power Act (16 U.S.C. 823b(d)).'.CommentsClose CommentsPermalink





(b) Conforming Amendment- Section 1262 of the Public Utility Holding Company Act of 2005 (42 U.S.C. 16451) is amended by striking paragraph (5) and inserting the following:CommentsClose CommentsPermalink





`(5) ELECTRIC UTILITY COMPANY-CommentsClose CommentsPermalink





`(A) IN GENERAL- The term `electric utility company' means any company that owns or operates facilities used for the generation, transmission, or distribution of electric energy for sale.CommentsClose CommentsPermalink





`(B) EXCLUSION- The term `electric utility company' does not include an electric generation unit (as defined in section 113(d) of the Public Utility Regulatory Policies Act of 1978).'.CommentsClose CommentsPermalink

SEC. 3. RELATIONSHIP TO STATE LAW.

Section 117(b) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2627(b)) is amended--CommentsClose CommentsPermalink





(1) by striking `Nothing' and inserting the following:CommentsClose CommentsPermalink





`(1) IN GENERAL- Except as provided in paragraph (2), nothing'; andCommentsClose CommentsPermalink





(2) by adding at the end the following:CommentsClose CommentsPermalink





`(2) NET METERING AND INTERCONNECTION STANDARDS-CommentsClose CommentsPermalink





`(A) IN GENERAL- Subject to subparagraph (B), no State or nonregulated utility may adopt or enforce any standard or requirement concerning net metering or interconnection that restricts access to the electric power transmission or local distribution system by qualified generators beyond those standards and requirements established under section 113.CommentsClose CommentsPermalink





`(B) EQUIVALENT OR GREATER ACCESS- Nothing in this Act precludes a State from adopting or enforcing incentives or requirements to encourage qualified generation and net metering that--CommentsClose CommentsPermalink





`(i) are in addition to or equivalent to incentives or requirements under section 113; orCommentsClose CommentsPermalink





`(ii) afford greater access to the electric power transmission and local distribution systems by qualified generators (as defined in section 113) or afford greater compensation or credit for electricity generated by the qualified generators.'.CommentsClose CommentsPermalink

SEC. 4. CONTRACTS FOR RENEWABLE ENERGY FOR EXECUTIVE AGENCIES.

Section 501(b)(1)(B) of title 40, United States Code, is amended--CommentsClose CommentsPermalink





(1) by striking `A contract' and inserting the following:CommentsClose CommentsPermalink





`(i) IN GENERAL- Except as provided in clause (ii), a contract'; andCommentsClose CommentsPermalink





(2) by adding at the end the following:CommentsClose CommentsPermalink





`(ii) RENEWABLE ENERGY- A contract for renewable energy (as defined in section 203(b) of the Energy Policy Act of 2005 (42 U.S.C. 15852(b))) may be made for a period of not more than 30 years.'.CommentsClose CommentsPermalink

SEC. 5. PROHIBITION OF EXCESSIVE FEES FOR SOLAR ENERGY SYSTEMS BUILDING PERMITS.

(a) Definition of Solar Energy System- In this section, the term `solar energy system' means, with respect to a structure, equipment that uses solar energy to generate electricity for, to heat or cool, or provide hot water for use in, the structure.CommentsClose CommentsPermalink





(b) Regulations- Not later than 180 days after the date of enactment of this Act, the Secretary of Housing and Urban Development, in consultation with the Secretary of Energy, shall issue regulations providing that the cost of a permit or license required by a State or unit of local government for construction or installation of any solar energy system shall not exceed--CommentsClose CommentsPermalink





(1) in the case of a structure primarily for residential use, an amount determined to be appropriate by the Secretary of Housing and Urban Development; andCommentsClose CommentsPermalink





(2) in the case of a structure primarily for nonresidential use, 1 percent of the total cost of the installation or construction of the solar energy system, but not more than $10,000.CommentsClose CommentsPermalink

SEC. 6. PROHIBITION OF RESTRICTIONS ON RESIDENTIAL INSTALLATION OF SOLAR ENERGY SYSTEM.

(a) Regulations- Within 180 days after the enactment of this Act, the Secretary of Housing and Urban Development, in consultation with the Secretary of Energy, shall issue regulations--CommentsClose CommentsPermalink





(1) to prohibit any private covenant, contract provision, lease provision, homeowners' association rule or bylaw, or similar restriction, that impairs the ability of the owner or lessee of any residential structure designed for occupancy by 1 family to install, construct, maintain, or use a solar energy system on such residential property; andCommentsClose CommentsPermalink





(2) to require that whenever any such covenant, provision, rule or bylaw, or restriction requires approval for the installation or use of a solar energy system, the application for approval shall be processed and approved by the appropriate approving entity in the same manner as an application for approval of an architectural modification to the property, and shall not be willfully avoided or delayed.CommentsClose CommentsPermalink





(b) Contents- The regulations required under subsection (a) shall provide that--CommentsClose CommentsPermalink





(1) such a covenant, provision, rule or bylaw, or restriction impairs the installation, construction, maintenance, or use of a solar energy system if it--CommentsClose CommentsPermalink





(A) unreasonably delays or prevents installation, maintenance, or use;CommentsClose CommentsPermalink





(B) unreasonably increases the cost of installation, maintenance, or use; orCommentsClose CommentsPermalink





(C) precludes use of such a system; andCommentsClose CommentsPermalink





(2) any fee or cost imposed on the owner or lessee of such a residential structure by such a covenant, provision, rule or bylaw, or restriction shall be considered unreasonable if--CommentsClose CommentsPermalink





(A) such fee or cost is not reasonable in comparison to the cost of the solar energy system or the value of its use; orCommentsClose CommentsPermalink





(B) treatment of solar energy systems by the covenant, provision, rule or bylaw, or restriction is not reasonable in comparison with treatment of comparable systems by the same covenant, provision, rule or bylaw, or restriction.CommentsClose CommentsPermalink





(c) Solar Energy System- For purposes of this section, the term `solar energy system' means, with respect to a structure, equipment that uses solar energy to generate electricity for, to heat or cool, or provide hot water for use in, the structure.CommentsClose CommentsPermalink