2022 -- H 7333

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LC004260

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - NET METERING

     

     Introduced By: Representatives Potter, Solomon, Baginski, Handy, McGaw, Felix,
Morales, Ruggiero, and Kennedy

     Date Introduced: February 04, 2022

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 39-26.4-2 of the General Laws in Chapter 39-26.4 entitled "Net

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Metering" is hereby amended to read as follows:

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     39-26.4-2. Definitions.

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     Terms not defined in this section herein shall have the same meaning as contained in

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chapter 26 of this title. When used in this chapter:

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     (1) "Community remote net-metering system" means a facility generating electricity using

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an eligible net-metering resource that allocates net-metering credits to a minimum of one account

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for a system associated with low- or moderate-income housing eligible credit recipients, or three

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(3) eligible credit-recipient customer accounts, provided that no more than fifty percent (50%) of

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the credits produced by the system are allocated to one eligible credit recipient, and provided further

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at least fifty percent (50%) of the credits produced by the system are allocated to the remaining

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eligible credit recipients in an amount not to exceed that which is produced annually by twenty-

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five kilowatt (25 KW) AC capacity. The community remote net-metering system may transfer

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credits to eligible credit recipients in an amount that is equal to or less than the sum of the usage of

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the eligible credit recipient accounts measured by the three-year (3) average annual consumption

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of energy over the previous three (3) years. A projected annual consumption of energy may be used

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until the actual three-year (3) average annual consumption of energy over the previous three (3)

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years at the eligible credit recipient accounts becomes available for use in determining eligibility

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of the generating system. The community remote net-metering system may be owned by the same

 

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entity that is the customer of record on the net-metered account or may be owned by a third party.

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     (2) "Electric distribution company" shall have the same meaning as § 39-1-2, but shall not

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include Block Island Power Company or Pascoag Utility District, each of whom shall be required

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to offer net metering to customers through a tariff approved by the public utilities commission after

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a public hearing. Any tariff or policy on file with the public utilities commission on the date of

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passage of this chapter shall remain in effect until the commission approves a new tariff.

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     (3) "Eligible credit recipient" means one of the following eligible recipients in the electric

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distribution company's service territory whose electric service account or accounts may receive net-

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metering credits from a community remote net-metering system. Eligible credit recipients include

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the following definitions:

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     (i) Residential accounts in good standing.

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     (ii) "Low- or moderate-income housing eligible credit recipient" means an electric service

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account or accounts in good standing associated with any housing development or developments

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owned or operated by a public agency, nonprofit organization, limited-equity housing cooperative,

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or private developer that receives assistance under any federal, state, or municipal government

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program to assist the construction or rehabilitation of housing affordable to low- or moderate-

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income households, as defined in the applicable federal or state statute, or local ordinance,

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encumbered by a deed restriction or other covenant recorded in the land records of the municipality

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in which the housing is located, that:

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     (A) Restricts occupancy of no less than fifty percent (50%) of the housing to households

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with a gross, annual income that does not exceed eighty percent (80%) of the area median income

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as defined annually by the United States Department of Housing and Urban Development (HUD);

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     (B) Restricts the monthly rent, including a utility allowance, that may be charged to

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residents, to an amount that does not exceed thirty percent (30%) of the gross, monthly income of

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a household earning eighty percent (80%) of the area median income as defined annually by HUD;

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     (C) Has an original term of not less than thirty (30) years from initial occupancy.

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      Electric service account or accounts in good standing associated with housing

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developments that are under common ownership or control may be considered a single low- or

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moderate-income housing eligible credit recipient for purposes of this section. The value of the

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credits shall be used to provide benefits to tenants.

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     (iii) "Educational institutions" means public and private schools at the primary, secondary,

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and postsecondary levels.

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     (4) "Eligible net-metering resource" means eligible renewable energy resource, as defined

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in § 39-26-5 including biogas created as a result of anaerobic digestion, but, specifically excluding

 

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all other listed eligible biomass fuels.

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     (5) "Eligible net-metering system" means a facility generating electricity using an eligible

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net-metering resource that is reasonably designed and sized to annually produce electricity in an

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amount that is equal to, or less than, the renewable self-generator's usage at the eligible net-metering

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system site measured by the three-year (3) average annual consumption of energy over the previous

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three (3) years at the electric distribution account(s) located at the eligible net-metering system site.

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A projected annual consumption of energy may be used until the actual three-year (3) average

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annual consumption of energy over the previous three (3) years at the electric distribution

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account(s) located at the eligible net-metering system site becomes available for use in determining

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eligibility of the generating system. No utility shall limit the eligibility of a net metering site based

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on prior consumption. Any excess of energy not consumed under a net metering system shall be

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credited to the consumer on a cost rate basis. The eligible net-metering system may be owned by

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the same entity that is the customer of record on the net-metered accounts or may be owned by a

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third party that is not the customer of record at the eligible net-metering system site and which may

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offer a third-party, net-metering financing arrangement or net-metering financing arrangement, as

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applicable. Notwithstanding any other provisions of this chapter, any eligible net-metering

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resource: (i) Owned by a public entity, educational institution, hospital, nonprofit, or multi-

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municipal collaborative or (ii) Owned and operated by a renewable-generation developer on behalf

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of a public entity, educational institution, hospital, nonprofit, or multi-municipal collaborative

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through a net-metering financing arrangement shall be treated as an eligible net-metering system

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and all accounts designated by the public entity, educational institution, hospital, nonprofit, or

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multi-municipal collaborative for net metering shall be treated as accounts eligible for net metering

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within an eligible net-metering system site.

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     (6) "Eligible net-metering system site" means the site where the eligible net-metering

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system or community remote net-metering system is located or is part of the same campus or

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complex of sites contiguous to one another and the site where the eligible net-metering system or

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community remote net-meterin system is located or a farm in which the eligible net-metering

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system or community remote net-metering system is located. Except for an eligible net-metering

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system owned by or operated on behalf of a public entity, educational institution, hospital,

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nonprofit, or multi-municipal collaborative through a net-metering financing arrangement, the

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purpose of this definition is to reasonably assure that energy generated by the eligible net-metering

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system is consumed by net-metered electric service account(s) that are actually located in the same

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geographical location as the eligible net-metering system. All energy generated from any eligible

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net-metering system is, and will be considered, consumed at the meter where the renewable energy

 

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resource is interconnected for valuation purposes. Except for an eligible net-metering system

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owned by, or operated on behalf of, a public entity, educational institution, hospital, nonprofit, or

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multi-municipal collaborative through a net-metering financing arrangement, or except for a

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community remote net-metering system, all of the net-metered accounts at the eligible net-metering

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system site must be the accounts of the same customer of record and customers are not permitted

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to enter into agreements or arrangements to change the name on accounts for the purpose of

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artificially expanding the eligible net-metering system site to contiguous sites in an attempt to avoid

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this restriction. However, a property owner may change the nature of the metered service at the

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accounts at the site to be master metered in the owner's name, or become the customer of record

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for each of the accounts, provided that the owner becoming the customer of record actually owns

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the property at which the account is located. As long as the net-metered accounts meet the

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requirements set forth in this definition, there is no limit on the number of accounts that may be net

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metered within the eligible net-metering system site.

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     (7) "Excess renewable net-metering credit" means a credit that applies to an eligible net-

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metering system or community remote net-metering system for that portion of the production of

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electrical energy beyond one hundred percent (100%) and no greater than one hundred twenty-five

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percent (125%) of the renewable self-generator's own consumption at the eligible net-metering

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system site or the sum of the usage of the eligible credit recipient accounts associated with the

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community remote net-metering system during the applicable billing period. Such excess

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renewable net-metering credit shall be equal to the electric distribution company's avoided cost

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rate, which is hereby declared to be the electric distribution company's standard-offer service

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kilowatt hour (KWh) charge for the rate class and time-of-use billing period (if applicable)

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applicable to the customer of record for the eligible net-metering system or applicable to the

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customer of record for the community remote net-metering system. The commission shall have the

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authority to make determinations as to the applicability of this credit to specific generation facilities

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to the extent there is any uncertainty or disagreement.

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     (8) "Farm" shall be defined in accordance with § 44-27-2, except that all buildings

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associated with the farm shall be eligible for net-metering credits as long as: (i) The buildings are

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owned by the same entity operating the farm or persons associated with operating the farm; and (ii)

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The buildings are on the same farmland as the project on either a tract of land contiguous with, or

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reasonably proximate to, such farmland or across a public way from such farmland.

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     (9) "Hospital" means and shall be defined and established as set forth in chapter 17 of title

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23.

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     (10) "Multi-municipal collaborative" means a group of towns and/or cities that enter into

 

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an agreement for the purpose of co-owning a renewable-generation facility or entering into a

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financing arrangement pursuant to subsection (14).

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     (11) "Municipality" means any Rhode Island town or city, including any agency or

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instrumentality thereof, with the powers set forth in title 45.

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     (12) "Net metering" means using electrical energy generated by an eligible net-metering

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system for the purpose of self-supplying electrical energy and power at the eligible net-metering

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system site, or with respect to a community remote net-metering system, for the purpose of

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generating net-metering credits to be applied to the electric bills of the eligible credit recipients

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associated with the community net-metering system. The amount so generated will thereby offset

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consumption at the eligible net-metering system site through the netting process established in this

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chapter, or with respect to a community remote net-metering system, the amounts generated in

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excess of that amount will result in credits being applied to the eligible credit-recipient accounts

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associated with the community remote net-metering system.

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     (13) "Net-metering customer" means a customer of the electric distribution company

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receiving and being billed for distribution service whose distribution account(s) are being net

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metered.

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     (14) "Net-metering financing arrangement" means arrangements entered into by a public

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entity, educational institution, hospital, nonprofit, or multi-municipal collaborative with a private

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entity to facilitate the financing and operation of a net-metering resource, in which the private entity

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owns and operates an eligible net-metering resource on behalf of a public entity, educational

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institution, hospital, nonprofit, or multi-municipal collaborative, where: (i) The eligible net-

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metering resource is located on property owned or controlled by the public entity, educational

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institution, hospital, or one of the municipalities, as applicable; and (ii) The production from the

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eligible net-metering resource and primary compensation paid by the public entity, educational

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institution, hospital, nonprofit, or multi-municipal collaborative to the private entity for such

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production is directly tied to the consumption of electricity occurring at the designated net-metered

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accounts.

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     (15) "Nonprofit" means a nonprofit corporation as defined and established through chapter

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6 of title 7, and shall include religious organizations that are tax exempt pursuant to 26 U.S.C. §

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501(d).

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     (16) "Person" means an individual, firm, corporation, association, partnership, farm, town

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or city of the state of Rhode Island, multi-municipal collaborative, or the state of Rhode Island or

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any department of the state government, governmental agency, or public instrumentality of the

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state.

 

LC004260 - Page 5 of 8

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     (17) "Project" means a distinct installation of an eligible net-metering system or a

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community remote net-metering system. An installation will be considered distinct if it is installed

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in a different location, or at a different time, or involves a different type of renewable energy.

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     (18) "Public entity" means the federal government, the state of Rhode Island,

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municipalities, wastewater treatment facilities, public transit agencies, or any water distributing

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plant or system employed for the distribution of water to the consuming public within this state

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including the water supply board of the city of Providence.

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     (19) "Renewable net-metering credit" means a credit that applies to an eligible net-metering

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system or a community remote net-metering system up to one hundred percent (100%) of either

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the renewable self-generator's usage at the eligible net-metering system site or the sum of the usage

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of the eligible credit-recipient accounts associated with the community remote net-metering system

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over the applicable billing period. This credit shall be equal to the total kilowatt hours of electrical

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energy generated up to the amount consumed on-site, and/or generated up to the sum of the eligible

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credit-recipient account usage during the billing period multiplied by the sum of the distribution

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company's:

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     (i) Standard-offer service kilowatt-hour charge for the rate class applicable to the net-

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metering customer, except that for remote public entity and multi-municipality collaborative net-

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metering systems that submit an application for an interconnection study on or after July 1, 2017,

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and community remote net-metering systems, the standard-offer service kilowatt-hour charge shall

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be net of the renewable energy standard charge or credit;

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     (ii) Distribution kilowatt-hour charge;

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     (iii) Transmission kilowatt-hour charge; and

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     (iv) Transition kilowatt-hour charge.

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      Notwithstanding the foregoing, except for systems that have requested an interconnection

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study for which payment has been received by the distribution company, or if an interconnection

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study is not required, a completed and paid interconnection application, by December 31, 2018, the

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renewable net-metering credit for all remote public entity and multi-municipal collaborative net-

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metering systems shall not include the distribution kilowatt-hour charge commencing on January

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1, 2050.

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     (20) "Renewable self-generator" means an electric distribution service customer of record

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for the eligible net-metering system or community remote net-metering system at the eligible net-

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metering system site which system is primarily designed to produce electrical energy for

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consumption by that same customer at its distribution service account(s), and/or, with respect to

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community remote net-metering systems, electrical energy which generates net-metering credits to

 

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be applied to offset the eligible credit-recipient account usage.

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     (21) "Third party" means and includes any person or entity, other than the renewable self-

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generator, who or that owns or operates the eligible net-metering system or community remote net-

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metering system on the eligible net-metering system site for the benefit of the renewable self-

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generator.

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     (22) "Third-party, net-metering financing arrangement" means the financing of eligible

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net-metering systems or community remote net-metering systems through lease arrangements or

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power/credit purchase agreements between a third party and renewable self-generator, except for

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those entities under a public entity net-metering financing arrangement. A third party engaged in

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providing financing arrangements related to such net-metering systems with a public or private

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entity is not a public utility as defined in § 39-1-2.

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     SECTION 2. This act shall take effect upon passage.

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LC004260

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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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     This act would not limit the installation of a net-metering system based on prior

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consumption of energy used in the last three (3) years. Additionally this act would allow the

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consumer using a net metering system to be credited by the utility on a cost basis for the excess of

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energy not consumed.

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     This act would take effect upon passage.

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LC004260

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