2021 -- S 0633

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LC002348

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

____________

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- OFFICE OF ENERGY

RESOURCES INTERCONNECTION STANDARDS

     Introduced By: Senator Tiara T. Mack

     Date Introduced: March 18, 2021

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 39-26.3 of the General Laws entitled "Distributed Generation

Interconnection" is hereby repealed in its entirety.

CHAPTER 39-26.3

Distributed Generation Interconnection

     39-26.3-1. Policy objective.

     The general assembly hereby finds and declares that the expeditious completion of the

application process for renewable distributed generation is in the public interest. For this reason,

certain standards and other provisions for the processing of applications are hereby set forth to

assure that the application process assists in the development of renewable generation resources in

a timely manner.

     39-26.3-2. Definitions.

     The following terms shall have the meanings given below for purposes of this chapter:

     (1) "Applicant" means an electric distribution customer or distributed-generation developer

who submits an application to the electric distribution company for the installation of a renewable

distributed-generation interconnection to the distribution system for a renewable distributed-

generation project that, as contemplated, meets the eligibility requirements for net metering

contained within this title or the eligibility requirements for a standard contract contained within

this title.

     (2) "Feasibility study" means a high-level project assessment that includes an estimate of

the cost of interconnecting to the distribution system that would be assessed on the applicant for an

interconnection. The estimate is not based on any engineering study, but is based on past experience

and judgment of the electric distribution company, taking into account the information in the

application, the location of the interconnection, and general knowledge of the distribution and

transmission system. The estimate cannot be relied upon by the applicant for purposes of holding

the electric distribution company liable or responsible for its accuracy as long as the electric

distribution company has provided the estimate in good faith. The feasibility study estimate shall

be a range within which the electric distribution company believes the interconnection costs are

likely to be and shall include a disclaimer that explains the nature of the estimate.

     (3) "Feasibility study fee" means a fee that shall be charged to the applicant to obtain a

feasibility study as specified in § 39-26.3-4.

     (4) "Impact study" means an engineering study that includes an estimate of the cost of

interconnecting to the distribution system that would be assessed on the applicant for an

interconnection that is based on an engineering study of the details of the proposed generation

project. The estimate generally will have a probability of accuracy of plus or minus twenty-five

percent (25%). The estimate may be relied upon by the applicant for purposes of determining the

expected cost of interconnection, but the distribution company may not be held liable or responsible

if the actual costs exceed the estimate as long as the estimate was provided in good faith and the

interconnection was implemented prudently by the electric distribution company.

     (5) "Impact study fee" means a fee that shall be charged to the applicant to obtain an impact

study as specified in § 39-26.3-4.

     (6) "Renewable energy resource" means those resources set forth in § 39-26-5.

     39-26.3-3. Application process.

     (a) The application process set out in this section shall be applicable to electric distribution

companies thirty (30) days after the enactment of this chapter.

     (b) An applicant for a renewable distributed-generation interconnection must submit an

application to the electric distribution company for an impact study, including a request for an

estimate of the cost of interconnecting the renewable distributed-generation resource to the

distribution system. The applicant may request a feasibility study prior to requesting an impact

study, but the applicant is not required to do so and may submit an application for an impact study

without having obtained a feasibility study. The distribution company shall follow the schedule

below for all applications.

     (c) Upon receipt of a completed application requesting a feasibility study and receipt of the

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applicable feasibility study fee, the electric distribution company shall provide a feasibility study

to the applicant within thirty (30) days.

     (d) Upon receipt of a completed application requesting an impact study and receipt of the

applicable impact study fee, the electric distribution company shall provide an impact study within

ninety (90) days.

     (e) In anticipation of the electric distribution company needing to add resources that are

not currently in Rhode Island or covered in rates, to provide the necessary services to advance the

aggressive goals and objectives set forth in this title, the electric distribution company shall be

authorized to add up to two (2) incremental employee resources located in Rhode Island that shall

be primarily dedicated to servicing Rhode Island applicants and customers in connection with net

metering and the development of distributed-generation resources, including the requisite resources

to perform impact and feasibility studies for distributed-generation interconnections and to assure

that feasibility studies and impact studies, as well as other engineering activity necessary to

facilitate the completion of distributed-generation projects in Rhode Island, are implemented and

delivered on a timely basis. Prior to new rates going into effect following the company's next

general rate case filing, the cost of the incremental employee resources shall be recovered through

rates on an annual basis through an annual reconciliation mechanism, provided that the total amount

of fees collected from impact studies and feasibility studies shall be netted against such costs. Only

the cost of time and work actually spent on Rhode Island renewable energy project matters shall be

included in the annual reconciliation. The commission shall have the authority to review these

positions in the electric distribution company's next general rate case as a cost of service in the

same manner as it reviews all other expenses in a rate case to determine whether they should

continue. Nothing contained in this section shall preclude the electric distribution company from

adding additional resources, subject to commission approval.

     (f) Notwithstanding any other provision of this chapter, the application process and fees

set forth in this chapter apply only to interconnections to the distribution system by renewable

distributed-generation resources. To the extent that a renewable generation resource seeks an

interconnection to the transmission system and the interconnection request is governed by rules and

regulations under the exclusive jurisdiction of the Federal Energy Regulatory Commission, the

provisions of this chapter shall not apply.

     (g) The rules and fees established in this chapter shall be incorporated within the applicable

"Standards for Interconnection of Distributed Generation" approved by the commission.

     39-26.3-4. Study cost fees.

     (a) After thirty (30) days from the enactment of this chapter until the end of calendar year

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2012, the feasibility study fee shall be in accordance with the schedule set forth below:

     (1) Residential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is twenty-five kilowatts (25 KW) or less: zero dollars ($0).

     (2) Residential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is greater than twenty-five kilowatts (25 KW): fifty dollars ($50.00).

     (3) Nonresidential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is one hundred kilowatts (100 KW) or less: one hundred dollars ($100).

     (4) Nonresidential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is two hundred fifty kilowatts (250 KW) or less: three hundred dollars

($300).

     (5) Nonresidential applicants for interconnections of renewable distributed generation that

is greater than two hundred fifty kilowatts (250 KW), up to one megawatt (1 MW): one thousand

dollars ($1,000).

     (6) Nonresidential applicants for interconnections of renewable distributed generation

greater than one megawatt (1 MW): two thousand five hundred dollars ($2,500).

     Beginning January 1, 2013, and for every year thereafter, the commission shall set a new

fee schedule that is no less than what is specified herein. The purpose of the fee schedule is to

provide a disincentive to applicants contemplating a renewable distributed-generation project from

requesting order of magnitude estimates unless they are serious about pursuing such projects.

     (b) After thirty (30) days from the enactment of this chapter until the end of calendar year

2012, the impact study fee shall be in accordance with the schedule set forth below:

     (1) Residential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is twenty-five kilowatts (25 KW) or less: zero dollars ($0).

     (2) Residential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is greater than twenty-five kilowatts (25 KW): one hundred dollars

($100).

     (3) Nonresidential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is one hundred kilowatts (100 KW) or less: five hundred dollars ($500)

     (4) Nonresidential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is two hundred fifty kilowatts (250 KW) or less: one thousand five

hundred dollars ($1,500).

     (5) Nonresidential applicants for interconnections of renewable distributed generation that

is greater than two hundred fifty kilowatts (250 KW), up to one megawatt (1 MW): five thousand

dollars ($5,000).

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     (6) Nonresidential applicants for interconnections of renewable distributed generation

greater than one megawatt (1 MW): ten thousand dollars ($10,000).

     Beginning January 1, 2013, and for every year thereafter, the commission shall set a new

fee schedule that is no less than what is specified herein. The purpose of the impact study fee

schedule is to assure that an applicant is responsible for paying a reasonable amount of the cost of

the study in advance of installing the distributed generation, but that the advance cost is not so high

as to discourage an applicant from pursuing a project.

     (c) To the extent that an impact study fee established under this section does not cover the

reasonable cost of an impact study for a given nonresidential project that commences operation,

the balance of these costs shall be recovered from such applicant through billings after the project

is online. The electric distribution company may, at its sole election, offset net-metering credits or

any standard contract payments until the full fee(s) is reimbursed, if it finds it administratively

convenient to use that means of billing for the balance of the fee for a given project.

     39-26.3-4.1. Interconnection standards.

     (a) The electric distribution company may only charge an interconnecting, renewable

energy customer for any system modifications to its electric power system specifically necessary

for and directly related to the interconnection.

     (b) If the public utilities commission determines that a specific system modification

benefiting other customers has been accelerated due to an interconnection request, it may order the

interconnecting customer to fund the modification subject to repayment of the depreciated value of

the modification as of the time the modification would have been necessary as determined by the

public utilities commission. Any system modifications benefiting other customers shall be included

in rates as determined by the public utilities commission.

     (c) If an interconnecting, renewable energy customer is required to pay for system

modifications and a subsequent renewable energy or commercial customer relies on those

modifications to connect to the distribution system within ten (10) years of the earlier

interconnecting, renewable energy customer's payment, the subsequent customer will make a

prorated contribution toward the cost of the system modifications that will be credited to the earlier

interconnecting, renewable energy customer as determined by the public utilities commission.

     (d) An electric distribution company shall acknowledge to the interconnecting, renewable

energy customer receipt of an application to initiate the interconnection process within three (3)

business days of receipt. The electric distribution company shall notify the interconnecting,

renewable energy customer in writing within ten (10) business days of receipt that the application

is or is not complete and, if not, advise what is missing. Any disputes regarding whether and when

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an application to initiate the interconnection process is complete shall be resolved expeditiously at

the public utilities commission. The maximum time allowed between the date of the completed

application and delivery of an executable interconnection service agreement shall be one hundred

seventy-five (175) calendar days or two hundred (200) calendar days if a detailed study is required.

All electric distribution company system modifications must be completed by the date which is the

later of: (1) No longer than two hundred seventy (270) calendar days, or three hundred sixty (360)

calendar days if substation work is necessary, from the date of the electric distribution company's

receipt of the interconnecting, renewable energy customer's executed interconnection service

agreement; or (2) The interconnecting, renewable energy customer's agreed-upon extension of the

time between the execution of the interconnection service agreement and interconnection as set

forth in writing. All deadlines herein are subject to all payments being made in accordance with the

distributed-generation interconnection tariff on file with the public utilities commission and the

interconnection service agreement. These system modification deadlines cannot be extended due

to customer delays in providing required information, all of which must be requested and obtained

before completion of the impact study. The deadlines for completion of system modifications will

be extended only to the extent of events that are clearly not under the control of the electric

distribution company, such as extended prohibitive weather, union work stoppage or force majeure,

or third-party delays, including, without limitation, delays due to ISO-NE requirements not

attributable to electric distribution company actions, and that cannot be resolved despite

commercially reasonable efforts. The electric distribution company shall notify the customer of the

start of any claimed deadline extension as soon as practicable, its cause and when it concludes, all

in writing. Any actual damages that a court of competent jurisdiction orders the electric distribution

company to pay to an interconnecting, renewable energy customer as a direct result of the electric

distribution company's failure to comply with the requirements of this subsection shall be payable

by its shareholders and may not be recovered from customers, provided that the total amount of

damages awarded for any and all such claims shall not exceed, in the aggregate, an amount equal

to the amount of the incentive the electric distribution company would have earned as provided for

in §§ 39-26.6-12(j)(3) and 39-26.1-4 in the year in which the system modifications were required

to be completed. In no event shall the electric distribution company be liable to the interconnecting,

renewable energy customer for any indirect, incidental, special, consequential, or punitive damages

of any kind whatsoever as a result of the electric distribution company's failure to comply with this

section.

     (e) On or before September 1, 2017, the public utilities commission shall initiate a docket

to establish metrics for the electric distribution company's performance in meeting the time frames

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set forth herein and in the distributed-generation interconnection standards approved by the public

utilities commission. The public utilities commission may include incentives and penalties in the

performance metrics.

     (f) The proposed interconnection of any new renewable energy resource that replaces the

same existing renewable energy resource of the same or less nameplate capacity that has been in

operation in the twelve (12) months preceding notification of the replacement shall be subject to a

sixty-day (60) review. The purpose of such sixty-day (60) review is to allow the electric distribution

company to determine whether any system modifications are required to support the

interconnection of the replacement renewable energy resource. If there is a need for system

modifications because of an interconnection policy change implemented by the electric distribution

company, then the system modification may be included in rates as determined by the public

utilities commission. If there is a need for system modifications only because of a change in the

rating or utility disturbance response that adversely affects the impact of the facility on the

distribution system, then the interconnecting, renewable energy customer shall be responsible for

the cost of the system modifications.

     39-26.3-5. Liberal construction of chapter required.

     This chapter shall be construed liberally in aid of its policy objective.

     39-26.3-6. Severability.

     If any provision of this chapter or the application thereof to any person or circumstances is

held invalid, the invalidity shall not affect other provisions or application of the chapter that can be

given effect without the invalid provision or application, and to this end the provisions of this

chapter are declared to be severable.

     SECTION 2. Sections 42-140-2 and 42-140-3 of the General Laws in Chapter 42-140

entitled "Rhode Island Energy Resources Act" are hereby amended to read as follows:

     42-140-2. Creation.

     There is hereby authorized, created and established an office of energy resources in the

executive department of state government, which may be assigned by executive order for

administrative purposes to a department within state government. The office of energy resources

shall be the successor to the state energy office. Within the office of energy resources there shall

be a division that will exclusively be responsible for the entire process for the approval of

interconnection renewable energy installation, expressly charged with the duty to consider and

address all applications for interconnection approval, as soon as possible. This office shall adopt a

rule or regulation that sets a series of the maximum times that it shall act on all applications,

depending upon the size of the project.

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     42-140-3. Purposes.

     The purposes of the office shall be to:

     (1) Develop and put into effect plans and programs to promote, encourage, and assist the

provision of energy resources for Rhode Island in a manner that enhances economic well-being,

social equity, and environmental quality;

     (2) Monitor, forecast, and report on energy use, energy prices, and energy demand and

supply forecasts, and make findings and recommendations with regard to energy supply diversity,

reliability, and procurement, including least-cost procurement;

     (3) Develop and to put into effect plans and programs to promote, encourage and assist the

efficient and productive use of energy resources in Rhode Island, and to coordinate energy

programs for natural gas, electricity, and heating oil to maximize the aggregate benefits of

conservation and efficiency of investments;

     (4) Monitor and report technological developments that may result in new and/or improved

sources of energy supply, increased energy efficiency, and reduced environmental impacts from

energy supply, transmission and distribution;

     (5) Administer the programs, duties, and responsibilities heretofore exercised by the state

energy office, except as these may be assigned by executive order or the general laws to other

departments and agencies of state government;

     (6) Develop, recommend and, as appropriate, implement integrated and/or comprehensive

strategies, including at regional and federal levels, to secure Rhode Island's interest in energy

resources, their supply and efficient use, and as necessary to interact with persons, private sector,

nonprofit, regional, federal entities and departments and agencies of other states to effectuate this

purpose;

     (7) Cooperate with agencies, departments, corporations, and entities of the state and of

political subdivisions of the state in achieving its purposes;

     (8) Cooperate with and assist the state planning council and the division of state planning

in developing, maintaining, and implementing state guide plan elements pertaining to energy and

renewable energy;

     (9) Coordinate the energy efficiency, renewable energy, least cost procurement, and

systems reliability plans and programs with the energy efficiency resource management council

and the renewable energy coordinating board;

     (10) Participate in, monitor implementation of, and provide technical assistance for the

low-income home energy assistance program enhancement plan established pursuant to § 39-1-

27.12;

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     (11) Participate in and monitor the distributed generation standard contracts program

pursuant to chapter 39-26-2;

     (12) Coordinate opportunities with and enter into contracts and/or agreements with the

commerce corporation associated with the energy efficiency, least-cost procurement, system

reliability, and renewable energy fund programs;

     (13) Provide support and information to the division of planning and the state planning

council in development of a ten (10) year Rhode Island Energy Guide Plan, which shall be reviewed

and amended if necessary every five (5) years;

     (14) Provide funding support if necessary to the renewable energy coordinating board

and/or the advisory council to carry out the objectives pursuant to chapter 42-140-3;

     (15) Advise and provide technical assistance to state and federally funded energy program

to support:

     (i) The federal low-income home energy assistance program which provides heating

assistance to eligible low-income persons and any state funded or privately funded heating

assistance program of a similar nature assigned to it for administration;

     (ii) The weatherization assistance program which offers home weatherization grants and

heating system upgrades to eligible persons of low-income;

     (iii) The emergency fuel program which provides oil deliveries to families experiencing a

heating emergency;

     (iv) The energy conservation program, which offers service and programs to all sectors;

and

     (v) [Deleted by P.L. 2008, ch. 228, § 2, and P.L. 2008, ch. 422, § 2.]

     (16) Advise the commerce corporation in the development of standards and rules for the

solicitation and award of renewable energy program investment funds in accordance with § 42-64-

13.2;

     (17) Develop, recommend, and evaluate energy programs for state facilities and operations

in order to achieve and demonstrate the benefits of energy-efficiency, diversification of energy

supplies, energy conservation, and demand management; and

     (18) Advise the governor and the general assembly with regard to energy resources and all

matters relevant to achieving the purposes of the office; and

     (19) Expeditiously consider and act on all applications for renewable energy distributed

generation interconnection to the distribution system.

     SECTION 3. Chapter 42-140 of the General Laws entitled "Rhode Island Energy

Resources Act" is hereby amended by adding thereto the following sections:

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     40-140-11. Policy objective.

     The general assembly hereby finds and declares that the expeditious completion of the

application process for renewable distributed generation is in the public interest. For this reason,

certain standards and other provisions for the processing of applications are hereby set forth to

assure that the application process assists in the development of renewable generation resources in

a timely manner.

     40-140-12. Definitions.

     The following terms shall have the meanings given below for purposes of this chapter:

     (1) "Applicant" means an electric distribution customer or distributed-generation developer

who submits an application to the office of energy resources for the installation of a renewable

distributed-generation interconnection to the distribution system for a renewable distributed-

generation project that, as contemplated, meets the eligibility requirements for net metering

contained within this title or the eligibility requirements for a standard contract contained within

this title.

     (2) "Feasibility study" means a high-level project assessment that includes an estimate of

the cost of interconnecting to the distribution system that would be assessed on the applicant for an

interconnection. The estimate is not based on any engineering study, but is based on past experience

and judgment of the office of energy resources, taking into account the information in the

application, the location of the interconnection, and general knowledge of the distribution and

transmission system. The feasibility study estimate shall be a range within which the office of

energy resources believes the interconnection costs are likely to be and shall include a disclaimer

that explains the nature of the estimate.

     (3) "Feasibility study fee" means a fee that shall be charged to the applicant to obtain a

feasibility study as specified in § 42-140-14.

     (4) "Impact study" means an engineering study conducted by the office of energy resources

that includes an estimate of the cost of interconnecting to the distribution system that would be

assessed on the applicant for an interconnection that is based on an engineering study of the details

of the proposed generation project. The estimate generally will have a probability of accuracy of

plus or minus twenty-five percent (25%). The estimate may be relied upon by the applicant for

purposes of determining the expected cost of interconnection.

     (5) "Impact study fee" means a fee that shall be charged to the applicant to obtain an impact

study as specified in § 42-140-14.

     (6) "Renewable energy resource" means those resources set forth in § 39-26-5.

     40-140-13. Application process.

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     (a) The application process set out in this section shall be applicable to all interconnection

proposals thirty (30) days after the enactment of this chapter.

     (b) An applicant for a renewable distributed-generation interconnection must submit an

application to the office of energy resources for an impact study, including a request for an estimate

of the cost of interconnecting the renewable distributed-generation resource to the distribution

system. The applicant may request a feasibility study prior to requesting an impact study, but the

applicant is not required to do so and may submit an application for an impact study without having

obtained a feasibility study. The distribution company shall follow the schedule below for all

applications.

     (c) Upon receipt of a completed application requesting a feasibility study and receipt of the

applicable feasibility study fee, the office of energy resources shall provide a feasibility study to

the applicant within thirty (30) days.

     (d) Upon receipt of a completed application requesting an impact study and receipt of the

applicable impact study fee, the office of energy resources shall provide an impact study within

ninety (90) days.

     (e) In anticipation of the office of energy resources newly added costs due to the

requirements of this chapter, additional funding shall be provided by the state.

     (f) Notwithstanding any other provision of this chapter, the application process and fees

set forth in this chapter apply only to interconnections to the distribution system by renewable

distributed-generation resources. To the extent that a renewable generation resource seeks an

interconnection to the transmission system and the interconnection request is governed by rules and

regulations under the exclusive jurisdiction of the Federal Energy Regulatory Commission, the

provisions of this chapter shall not apply.

     (g) The rules and fees established in this chapter shall be incorporated within the applicable

"Standards for Interconnection of Distributed Generation" approved by the office of energy

resources. There shall be no fees for all applications seeking approval of interconnecting renewable

energy projects.

     40-140-14. Study cost fees.

     The office of energy resources shall set the feasibility study cost fees for each proposed

interconnection project.

     40-140-15. Interconnection standards.

     (a) The office of energy resources may only charge an interconnecting, renewable energy

customer for any system modifications to its electric power system specifically necessary for and

directly related to the interconnection.

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     (b) If the office of energy resources determines that a specific system modification

benefiting other customers has been accelerated due to an interconnection request, it may order the

interconnecting customer to fund the modification subject to repayment of the depreciated value of

the modification as of the time the modification would have been necessary as determined by the

office of energy resources. Any system modifications benefiting other customers shall be included

in rates as determined by the office of energy resources.

     (c) If an interconnecting, renewable energy customer is required to pay for system

modifications and a subsequent renewable energy or commercial customer relies on those

modifications to connect to the distribution system within ten (10) years of the earlier

interconnecting, renewable energy customer's payment, the subsequent customer will make a

prorated contribution toward the cost of the system modifications that will be credited to the earlier

interconnecting, renewable energy customer as determined by the office of energy resources.

     (d) The office of energy resources shall acknowledge to the interconnecting, renewable

energy customer receipt of an application to initiate the interconnection process within three (3)

business days of receipt. The office of energy resources shall notify the interconnecting, renewable

energy customer in writing within ten (10) business days of receipt that the application is or is not

complete and, if not, advise what is missing. Any disputes regarding whether and when an

application to initiate the interconnection process is complete shall be resolved expeditiously at the

office of energy resources. The maximum time allowed between the date of the completed

application and delivery of an executable interconnection service agreement shall be one hundred

seventy-five (175) calendar days or two hundred (200) calendar days if a detailed study is required.

All electric distribution company system modifications must be completed by the date which is the

later of:

     (1) No longer than two hundred seventy (270) calendar days, or three hundred sixty (360)

calendar days if substation work is necessary, from the date of the electric distribution company's

receipt of the interconnecting, renewable energy customer's executed interconnection service

agreement; or

     (2) The interconnecting, renewable energy customer's agreed-upon extension of the time

between the execution of the interconnection service agreement and interconnection as set forth in

writing. All deadlines herein are subject to all payments being made in accordance with the

distributed-generation interconnection tariff on file with the office of energy resources and the

interconnection service agreement. These system modification deadlines cannot be extended due

to customer delays in providing required information, all of which must be requested and obtained

before completion of the impact study. The deadlines for completion of system modifications will

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be extended only to the extent of events that are clearly not under the control of the electric

distribution company, such as extended prohibitive weather, union work stoppage or force majeure,

or third-party delays, including, without limitation, delays due to ISO-NE requirements not

attributable to electric distribution company actions, and that cannot be resolved despite

commercially reasonable efforts. The electric distribution company shall notify the customer of the

start of any claimed deadline extension as soon as practicable, its cause and when it concludes, all

in writing. Any actual damages that a court of competent jurisdiction orders the electric distribution

company to pay to an interconnecting, renewable energy customer as a direct result of the electric

distribution company's failure to comply with the requirements of this subsection shall be payable

by its shareholders and may not be recovered from customers; provided that, the total amount of

damages awarded for any and all such claims shall not exceed, in the aggregate, an amount equal

to the amount of the incentive the electric distribution company would have earned as provided for

in §§ 39-26.6-12(j)(3) and 39-26.1-4 in the year in which the system modifications were required

to be completed. In no event shall the electric distribution company be liable to the interconnecting,

renewable energy customer for any indirect, incidental, special, consequential, or punitive damages

of any kind whatsoever as a result of the electric distribution company's failure to comply with this

section.

     (e) On or before September 1, 2021, the office of energy resources shall initiate a docket

to establish metrics for the electric distribution company's performance in meeting the time frames

set forth herein and in the distributed-generation interconnection standards approved by the office

of energy resources. The office of energy resources may include incentives and penalties in the

performance metrics.

     (f) The proposed interconnection of any new renewable energy resource that replaces the

same existing renewable energy resource of the same or less nameplate capacity that has been in

operation in the twelve (12) months preceding notification of the replacement shall be subject to a

sixty-day (60) review. The purpose of such sixty-day (60) review is to allow the electric distribution

company to determine whether any system modifications are required to support the

interconnection of the replacement renewable energy resource. If there is a need for system

modifications because of an interconnection policy change implemented by the electric distribution

company, then the system modification may be included in rates as determined by the office of

energy resources. If there is a need for system modifications only because of a change in the rating

or utility disturbance response that adversely affects the impact of the facility on the distribution

system, then the interconnecting, renewable energy customer shall be responsible for the cost of

the system modifications.

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     40-140-16. Liberal construction of chapter required.

     This chapter shall be construed liberally in aid of its policy objective.

     40-140-17. Severability.

     If any provision of this chapter or the application thereof to any person or circumstances is

held invalid, the invalidity shall not affect other provisions or application of the chapter that can be

given effect without the invalid provision or application, and to this end the provisions of this

chapter are declared to be severable.

     SECTION 4. This act shall take effect upon passage.

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LC002348

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- OFFICE OF ENERGY

RESOURCES INTERCONNECTION STANDARDS

***

     This act would transfer from the electric distribution company to the office of energy

resources the authority to consider and act upon all applications for approval of interconnection of

renewable energy installation.

     This act would take effect upon passage.

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LC002348

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