2020 -- S 2511 | |
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LC005087 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2020 | |
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A N A C T | |
RELATING TO PUBLIC UTILITIES AND CARRIERS -- NET-METERING | |
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Introduced By: Senators McCaffrey, Lynch Prata, and Sosnowski | |
Date Introduced: February 25, 2020 | |
Referred To: Senate Environment & Agriculture | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Sections 39-26.4-2 and 39-26.4-3 of the General Laws in Chapter 39-26.4 |
2 | entitled "Net Metering" are hereby amended to read as follows: |
3 | 39-26.4-2. Definitions. |
4 | Terms not defined in this section herein shall have the same meaning as contained in |
5 | chapter 26 of title 39 of the general laws. When used in this chapter: |
6 | (1) "Community remote-net-metering system" means a facility generating electricity using |
7 | an eligible net-metering resource that allocates net-metering credits to a minimum of one account |
8 | for system associated with low or moderate housing eligible credit recipients, or three (3) eligible |
9 | credit-recipient customer accounts, provided that no more than fifty percent (50%) of the credits |
10 | produced by the system are allocated to one eligible credit recipient, and provided further at least |
11 | fifty percent (50%) of the credits produced by the system are allocated to the remaining eligible |
12 | credit recipients in an amount not to exceed that which is produced annually by twenty-five kilowatt |
13 | (25 kW) AC capacity. The community remote-net-metering system may transfer credits to eligible |
14 | credit recipients in an amount that is equal to or less than the sum of the usage of the eligible credit |
15 | recipient accounts measured by the three-year (3) average annual consumption of energy over the |
16 | previous three (3) years. A projected annual consumption of energy may be used until the actual |
17 | three-year (3) average annual consumption of energy over the previous three (3) years at the eligible |
18 | credit recipient accounts becomes available for use in determining eligibility of the generating |
19 | system. The community remote-net-metering system may be owned by the same entity that is the |
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1 | customer of record on the net-metered account or may be owned by a third party. |
2 | (2) "Electric-distribution company" shall have the same meaning as § 39-1-2, but shall not |
3 | include block island power company or Pascoag utility district, each of whom shall be required to |
4 | offer net metering to customers through a tariff approved by the public utilities commission after a |
5 | public hearing. Any tariff or policy on file with the public utilities commission on the date of |
6 | passage of this chapter shall remain in effect until the commission approves a new tariff. |
7 | (3) "Eligible credit recipient" means one of the following eligible recipients in the electric- |
8 | distribution company's service territory whose electric service account or accounts may receive net- |
9 | metering credits from a community remote net-metering system. Eligible credit recipients include |
10 | the following definitions: |
11 | (i) Residential accounts in good standing. |
12 | (ii) "Low- or moderate-income housing eligible credit recipient" means an electric service |
13 | account or accounts in good standing associated with any housing development or developments |
14 | owned or operated by a public agency, nonprofit organization, limited-equity housing cooperative, |
15 | or private developer, that receives assistance under any federal, state, or municipal government |
16 | program to assist the construction or rehabilitation of housing affordable to low- or moderate- |
17 | income households, as defined in the applicable federal or state statute, or local ordinance, |
18 | encumbered by a deed restriction or other covenant recorded in the land records of the municipality |
19 | in which the housing is located, that: |
20 | (A) Restricts occupancy of no less than fifty percent (50%) of the housing to households |
21 | with a gross, annual income that does not exceed eighty percent (80%) of the area median income |
22 | as defined annually by the United States Department of Housing and Urban Development (HUD); |
23 | (B) Restricts the monthly rent, including a utility allowance, that may be charged to |
24 | residents, to an amount that does not exceed thirty percent (30%) of the gross, monthly income of |
25 | a household earning eighty percent (80%) of the area, median income as defined annually by HUD; |
26 | (C) That has an original term of not less than thirty (30) years from initial occupancy. |
27 | Electric service account or accounts in good standing associated with housing |
28 | developments that are under common ownership or control may be considered a single low- or |
29 | moderate-income housing-eligible credit recipient for purposes of this section. The value of the |
30 | credits shall be used to provide benefits to tenants. |
31 | (iii) "Educational institutions" means public and private schools at the primary, secondary, |
32 | and postsecondary levels. |
33 | (4) "Eligible net-metering resource" means eligible renewable-energy resource, as defined |
34 | in § 39-26-5 including biogas created as a result of anaerobic digestion, but, specifically excluding |
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1 | all other listed eligible biomass fuels. |
2 | (5) "Eligible net-metering system" means a facility generating electricity using an eligible |
3 | net-metering resource that is reasonably designed and sized to annually produce electricity in an |
4 | amount that is equal to, or less than, the renewable self-generator's usage at the eligible net- |
5 | metering-system site measured by the three-year (3) average annual consumption of energy over |
6 | the previous three (3) years at the electric-distribution account(s) located at the eligible net- |
7 | metering-system site. A projected annual consumption of energy may be used until the actual three- |
8 | year (3) average annual consumption of energy over the previous three (3) years at the electric- |
9 | distribution account(s) located at the eligible net-metering-system site becomes available for use in |
10 | determining eligibility of the generating system. The eligible net-metering system may be owned |
11 | by the same entity that is the customer of record on the net-metered accounts or may be owned by |
12 | a third party that is not the customer of record at the eligible net-metering system site and which |
13 | may offer a third-party, net-metering financing arrangement or net-metering financing |
14 | arrangement, as applicable. Notwithstanding any other provisions of this chapter, any eligible net- |
15 | metering resource: (i) Owned by a public entity, educational institution, hospital, nonprofit, or |
16 | multi-municipal multi-party collaborative or (ii) Owned and operated by a renewable-generation |
17 | developer on behalf of a public entity, educational institution, hospital, nonprofit, or multi- |
18 | municipal multi-party collaborative through net-metering financing arrangement shall be treated as |
19 | an eligible net-metering system and all accounts designated by the public entity, educational |
20 | institution, hospital, nonprofit, or multi-municipal multi-party collaborative for net metering shall |
21 | be treated as accounts eligible for net metering within an eligible net-metering-system site. |
22 | (6) "Eligible net-metering-system site" means the site where the eligible net-metering |
23 | system or community remote net-metering system is located or is part of the same campus or |
24 | complex of sites contiguous to one another and the site where the eligible net-metering system or |
25 | community remote-net-metering system is located or a farm in which the eligible net-metering |
26 | system or community remote-net-metering system is located. Except for an eligible net-metering |
27 | system owned by or operated on behalf of a public entity, educational institution, hospital, |
28 | nonprofit, or multi-municipal multi-party collaborative through a net-metering financing |
29 | arrangement, the purpose of this definition is to reasonably assure that energy generated by the |
30 | eligible net-metering system is consumed by net-metered electric service account(s) that are |
31 | actually located in the same geographical location as the eligible net-metering system. All energy |
32 | generated from any eligible net-metering system is, and will be considered, consumed at the meter |
33 | where the renewable-energy resource is interconnected for valuation purposes. Except for an |
34 | eligible net-metering system owned by, or operated on behalf of, a public entity, educational |
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1 | institution, hospital, nonprofit, or multi-municipal multi-party collaborative through a net-metering |
2 | financing arrangement, or except for a community remote-net-metering system, all of the net- |
3 | metered accounts at the eligible net-metering-system site must be the accounts of the same |
4 | customer of record and customers are not permitted to enter into agreements or arrangements to |
5 | change the name on accounts for the purpose of artificially expanding the eligible net-metering- |
6 | system site to contiguous sites in an attempt to avoid this restriction. However, a property owner |
7 | may change the nature of the metered service at the accounts at the site to be master metered in the |
8 | owner's name, or become the customer of record for each of the accounts, provided that the owner |
9 | becoming the customer of record actually owns the property at which the account is located. As |
10 | long as the net-metered accounts meet the requirements set forth in this definition, there is no limit |
11 | on the number of accounts that may be net metered within the eligible net-metering-system site. |
12 | (7) "Excess renewable net-metering credit" means a credit that applies to an eligible net- |
13 | metering system or community remote-net-metering system for that portion of the production of |
14 | electrical energy beyond one hundred percent (100%) and no greater than one hundred twenty-five |
15 | percent (125%) of the renewable self-generator's own consumption at the eligible net-metering- |
16 | system site or the sum of the usage of the eligible credit recipient accounts associated with the |
17 | community remote-net-metering system during the applicable billing period. Such excess |
18 | renewable net-metering credit shall be equal to the electric-distribution company's avoided cost |
19 | rate, which is hereby declared to be the electric-distribution company's standard offer service |
20 | kilowatt hour (kWh) charge for the rate class and time-of-use billing period (if applicable) |
21 | applicable to the customer of record for the eligible net-metering system or applicable to the |
22 | customer of record for the community remote-net-metering system. The commission shall have |
23 | the authority to make determinations as to the applicability of this credit to specific generation |
24 | facilities to the extent there is any uncertainty or disagreement. |
25 | (8) "Farm" shall be defined in accordance with § 44-27-2, except that all buildings |
26 | associated with the farm shall be eligible for net-metering credits as long as: (i) The buildings are |
27 | owned by the same entity operating the farm or persons associated with operating the farm; and (ii) |
28 | The buildings are on the same farmland as the project on either a tract of land contiguous with, or |
29 | reasonably proximate to, such farmland or across a public way from such farmland. |
30 | (9) "Hospital" means and shall be defined and established as set forth in chapter 17 of title |
31 | 23. |
32 | (10) "Multi-municipal collaborative" means a group of towns and/or cities that enter into |
33 | an agreement for the purpose of co-owning a renewable-generation facility or entering into a |
34 | financing arrangement pursuant to subdivision (14). "Multi-party collaborative" means any |
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1 | combination of two (2) or more eligible parties that enter into an agreement for the purpose of co- |
2 | owning one or more eligible net-metering resources or entering into financing arrangement(s) for |
3 | the financing and operation of one or more eligible net-metering resources pursuant to § 39-26.4- |
4 | 2(14). For purposes of this subsection, "eligible parties" means public entities, educational |
5 | institutions, hospitals and nonprofits. |
6 | (11) "Municipality" means any Rhode Island town or city, including any agency or |
7 | instrumentality thereof, with the powers set forth in title 45 of the general laws. |
8 | (12) "Net metering" means using electrical energy generated by an eligible, net-metering |
9 | system for the purpose of self-supplying electrical energy and power at the eligible net-metering- |
10 | system site, or with respect to a community remote-net-metering system, for the purpose of |
11 | generating net-metering credits to be applied to the electric bills of the eligible credit recipients |
12 | associated with the community net-metering system. The amount so generated will thereby offset |
13 | consumption at the eligible net-metering system site through the netting process established in this |
14 | chapter, or with respect to a community remote-net-metering system, the amounts generated in |
15 | excess of that amount will result in credits being applied to the eligible credit-recipient accounts |
16 | associated with the community remote-net-metering system. |
17 | (13) "Net-metering customer" means a customer of the electric-distribution company |
18 | receiving and being billed for distribution service whose distribution account(s) are being net |
19 | metered. |
20 | (14) "Net-metering financing arrangement" means arrangements entered into by a public |
21 | entity, educational institution, hospital, nonprofit, or multi-municipal multi-party collaborative |
22 | with a private entity to facilitate the financing and operation of a net-metering resource, in which |
23 | the private entity owns and operates an eligible net-metering resource on behalf of a public entity, |
24 | educational institution, hospital, nonprofit, or multi-municipal multi-party collaborative, where: (i) |
25 | The eligible net-metering resource is located on property owned or controlled by the public entity, |
26 | educational institution, hospital, or one of the municipalities, as applicable, and (ii) The production |
27 | from the eligible net-metering resource and primary compensation paid by the public entity, |
28 | educational institution, hospital, nonprofit, or multi-municipal multi-party collaborative to the |
29 | private entity for such production is directly tied to the consumption of electricity occurring at the |
30 | designated net-metered accounts. |
31 | (15) "Nonprofit" means a nonprofit corporation as defined and established through chapter |
32 | 6 of title 7, and shall include religious organizations that are tax exempt pursuant to 26 U.S.C. § |
33 | 501(d). |
34 | (16) "Person" means an individual, firm, corporation, association, partnership, farm, town |
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1 | or city of the State of Rhode Island, multi-municipal multi-party collaborative, or the State of Rhode |
2 | Island or any department of the state government, governmental agency, or public instrumentality |
3 | of the state. |
4 | (17) "Project" means a distinct installation of an eligible net-metering system or a |
5 | community remote-net-metering system. An installation will be considered distinct if it is installed |
6 | in a different location, or at a different time, or involves a different type of renewable energy. |
7 | (18) "Public entity" means the federal government, the state of Rhode Island, |
8 | municipalities, wastewater treatment facilities, public transit agencies, or any water distributing |
9 | plant or system employed for the distribution of water to the consuming public within this state |
10 | including the water supply board of the city of Providence. |
11 | (19) "Renewable net-metering credit" means a credit that applies to an eligible net-metering |
12 | system or a community remote-net-metering system up to one hundred percent (100%) of either |
13 | the renewable self-generator's usage at the eligible net-metering-system site or the sum of the usage |
14 | of the eligible credit-recipient accounts associated with the community remote net-metering system |
15 | over the applicable billing period. This credit shall be equal to the total kilowatt hours of electrical |
16 | energy generated up to the amount consumed on-site, and/or generated up to the sum of the eligible |
17 | credit-recipient account usage during the billing period multiplied by the sum of the distribution |
18 | company's: |
19 | (i) Standard offer service kilowatt hour charge for the rate class applicable to the net- |
20 | metering customer, except that for remote public entity and multi-municipality multi-party |
21 | collaborative net-metering systems that submit an application for an interconnection study on or |
22 | after July 1, 2017, and community remote-net-metering systems, the standard offer service |
23 | kilowatt-hour charge shall be net of the renewable energy standard charge or credit; |
24 | (ii) Distribution kilowatt-hour charge; |
25 | (iii) Transmission kilowatt-hour charge; and |
26 | (iv) Transition kilowatt-hour charge. |
27 | Notwithstanding the foregoing, except for systems that have requested an interconnection |
28 | study for which payment has been received by the distribution company, or if an interconnection |
29 | study is not required, a completed and paid interconnection application, by December 31, 2018, the |
30 | renewable net-metering credit for all remote public entity and multi-municipal multi-party |
31 | collaborative net-metering systems shall not include the distribution kilowatt hour charge |
32 | commencing on January 1, 2050. |
33 | (20) "Renewable self-generator" means an electric distribution service customer of record |
34 | for the eligible net-metering system or community remote-net-metering system at the eligible net- |
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1 | metering-system site which system is primarily designed to produce electrical energy for |
2 | consumption by that same customer at its distribution service account(s), and/or, with respect to |
3 | community remote-net-metering systems, electrical energy which generates net-metering credits to |
4 | be applied to offset the eligible credit-recipient account usage. |
5 | (21) "Third party" means and includes any person or entity, other than the renewable self- |
6 | generator, who or that owns or operates the eligible net-metering system or community remote-net- |
7 | metering system on the eligible net-metering-system site for the benefit of the renewable self- |
8 | generator. |
9 | (22) "Third-party, net-metering financing arrangement" means the financing of eligible |
10 | net-metering systems or community remote-net-metering systems through lease arrangements or |
11 | power/credit purchase agreements between a third party and renewable self-generator, except for |
12 | those entities under a public entity net-metering finance arrangement. A third party engaged in |
13 | providing financing arrangements related to such net-metering systems with a public or private |
14 | entity is not a public utility as defined in § 39-1-2. |
15 | 39-26.4-3. Net metering. |
16 | (a) The following policies regarding net metering of electricity from eligible net-metering |
17 | systems and community remote-net-metering systems and regarding any person that is a renewable |
18 | self-generator shall apply: |
19 | (1)(i) The maximum, allowable capacity for eligible net-metering systems, based on |
20 | nameplate capacity, shall be ten megawatts (10 MW), effective sixty (60) days after passage. The |
21 | aggregate amount of net metering in the Block Island Power Company and the Pascoag Utility |
22 | District shall not exceed three percent (3%) of peak load for each utility district; and |
23 | (ii) Through December 31, 2018, the maximum, aggregate amount of community remote- |
24 | net-metering systems built shall be thirty megawatts (30 MW). Any of the unused MW amount |
25 | after December 31, 2018, shall remain available to community remote-net-metering systems until |
26 | the MW aggregate amount is interconnected. After December 31, 2018, the commission may |
27 | expand or modify the aggregate amount after a public hearing upon petition by the office of energy |
28 | resources. The commission shall determine within six (6) months of such petition being docketed |
29 | by the commission whether the benefits of the proposed expansion exceed the cost. This aggregate |
30 | amount shall not apply to any net-metering financing arrangement involving public entity facilities, |
31 | multi-municipal multi-party collaborative facilities, educational institutions, the federal |
32 | government, hospitals, or nonprofits. By June 30, 2018, the commission shall conduct a study |
33 | examining the cost and benefit to all customers of the inclusion of the distribution charge as a part |
34 | of the net-metering calculation. |
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1 | (2) For ease of administering net-metered accounts and stabilizing net-metered account |
2 | bills, the electric-distribution company may elect (but is not required) to estimate for any twelve- |
3 | month (12) period: |
4 | (i) The production from the eligible net-metering system or community remote-net- |
5 | metering system; and |
6 | (ii) Aggregate consumption of the net-metered accounts at the eligible net-metering-system |
7 | site or the sum of the consumption of the eligible credit-recipient accounts associated with the |
8 | community remote-net-metering system, and establish a monthly billing plan that reflects the |
9 | expected credits that would be applied to the net-metered accounts over twelve (12) months. The |
10 | billing plan would be designed to even out monthly billings over twelve (12) months, regardless of |
11 | actual production and usage. If such election is made by the electric-distribution company, the |
12 | electric-distribution company would reconcile payments and credits under the billing plan to actual |
13 | production and consumption at the end of the twelve-month (12) period and apply any credits or |
14 | charges to the net-metered accounts for any positive or negative difference, as applicable. Should |
15 | there be a material change in circumstances at the eligible net-metering system site or associated |
16 | accounts during the twelve-month (12) period, the estimates and credits may be adjusted by the |
17 | electric-distribution company during the reconciliation period. The electric-distribution company |
18 | also may elect (but is not required) to issue checks to any net-metering customer in lieu of billing |
19 | credits or carry-forward credits or charges to the next billing period. For residential-eligible net- |
20 | metering systems and community-remote-net-metering systems twenty-five kilowatts (25 kw) or |
21 | smaller, the electric-distribution company, at its option, may administer renewable net-metering |
22 | credits month to month allowing unused credits to carry forward into the following billing period. |
23 | (3) If the electricity generated by an eligible net-metering system or community remote- |
24 | net-metering system during a billing period is equal to, or less than, the net-metering customer's |
25 | usage at the eligible net-metering-system site or the sum of the usage of the eligible credit-recipient |
26 | accounts associated with the community remote-net-metering system during the billing period, the |
27 | customer shall receive renewable net-metering credits, that shall be applied to offset the net- |
28 | metering customer's usage on accounts at the eligible net-metering-system site, or shall be used to |
29 | credit the eligible credit-recipient's electric account. |
30 | (4) If the electricity generated by an eligible net-metering system or community remote- |
31 | net-metering system during a billing period is greater than the net-metering customer's usage on |
32 | accounts at the eligible net-metering-system site or the sum of the usage of the eligible credit- |
33 | recipient accounts associated with the community remote-net-metering system during the billing |
34 | period, the customer shall be paid by excess renewable net-metering credits for the excess |
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1 | electricity generated up to an additional twenty-five percent (25%) beyond the net-metering |
2 | customer's usage at the eligible net-metering-system site, or the sum of the usage of the eligible |
3 | credit-recipient accounts associated with the community remote net-metering system during the |
4 | billing period; unless the electric-distribution company and net-metering customer have agreed to |
5 | a billing plan pursuant to subdivision (2). |
6 | (5) The rates applicable to any net-metered account shall be the same as those that apply |
7 | to the rate classification that would be applicable to such account in the absence of net-metering, |
8 | including customer and demand charges, and no other charges may be imposed to offset net- |
9 | metering credits. |
10 | (b) The commission shall exempt electric-distribution company customer accounts |
11 | associated with an eligible, net-metering system from back-up or standby rates commensurate with |
12 | the size of the eligible net-metering system, provided that any revenue shortfall caused by any such |
13 | exemption shall be fully recovered by the electric-distribution company through rates. |
14 | (c) Any prudent and reasonable costs incurred by the electric-distribution company |
15 | pursuant to achieving compliance with subsection (a) and the annual amount of any renewable net- |
16 | metering credits or excess, renewable net-metering credits provided to accounts associated with |
17 | eligible net-metering systems or community remote-net-metering systems, shall be aggregated by |
18 | the distribution company and billed to all distribution customers on an annual basis through a |
19 | uniform, per-kilowatt-hour (kwh) surcharge embedded in the distribution component of the rates |
20 | reflected on customer bills. |
21 | (d) The billing process set out in this section shall be applicable to electric-distribution |
22 | companies thirty (30) days after the enactment of this chapter. |
23 | SECTION 2. This act shall take effect upon passage. |
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LC005087 | |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO PUBLIC UTILITIES AND CARRIERS -- NET-METERING | |
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1 | This act would replace the term multi-municipal collaborative with multi-party |
2 | collaborative and define it as any combination of two (2) or more eligible parties that enter into an |
3 | agreement for the purpose of co-owning one or more eligible net-metering resources or entering |
4 | into financing arrangement(s) for the financing and operation of one or more eligible net-metering |
5 | resources pursuant to § 39-26.4-2(14). For purposes of this subsection, “eligible parties” means |
6 | public entities, educational institutions, hospitals and nonprofits. |
7 | This act would take effect upon passage. |
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LC005087 | |
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