2024 -- S 2151 SUBSTITUTE A | |
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LC004281/SUB A | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2024 | |
____________ | |
A N A C T | |
RELATING TO PUBLIC UTILITIES AND CARRIERS -- NET METERING | |
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Introduced By: Senator Alana DiMario | |
Date Introduced: January 24, 2024 | |
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 this title. 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 a system associated with low- or moderate-income housing eligible credit recipients, or three |
9 | (3) eligible credit-recipient customer accounts, provided that no more than fifty percent (50%) of |
10 | the credits produced by the system are allocated to one eligible credit recipient, and provided further |
11 | at least fifty percent (50%) of the credits produced by the system are allocated to the remaining |
12 | eligible credit recipients in an amount not to exceed that which is produced annually by twenty- |
13 | five kilowatt (25 KW) AC capacity. The community remote net-metering system may transfer |
14 | credits to eligible credit recipients in an amount that is equal to or less than the sum of the usage of |
15 | the eligible credit recipient accounts measured by the three-year (3) average annual consumption |
16 | of energy over the previous three (3) years. A projected annual consumption of energy may be used |
17 | until the actual three-year (3) average annual consumption of energy over the previous three (3) |
18 | years at the eligible credit recipient accounts becomes available for use in determining eligibility |
19 | of the generating system. The community remote net-metering system may be owned by the same |
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1 | entity that is the customer of record on the net-metered account or may be owned by a third party. |
2 | (2) “Core forest” refers to unfragmented forest blocks of single or multiple parcels totaling |
3 | two hundred fifty (250) acres or greater unbroken by development and at least twenty-five (25) |
4 | yards from mapped roads, with eligibility questions to be resolved by the director of the department |
5 | of environmental management. Such determination shall constitute a contested case as defined in |
6 | § 42-35-1. |
7 | (3) “Electric distribution company” shall have the same meaning as § 39-1-2, but shall not |
8 | include Block Island Power Company or Pascoag Utility District, each of whom shall be required |
9 | to offer net metering to customers through a tariff approved by the public utilities commission after |
10 | a public hearing. Any tariff or policy on file with the public utilities commission on the date of |
11 | passage of this chapter shall remain in effect until the commission approves a new tariff. |
12 | (4) “Eligible credit recipient” means one of the following eligible recipients in the electric |
13 | distribution company’s service territory whose electric service account or accounts may receive |
14 | net-metering credits from a community remote net-metering system. Eligible credit recipients |
15 | include the following definitions: |
16 | (i) Residential accounts in good standing. |
17 | (ii) “Low- or moderate-income housing eligible credit recipient” means an electric service |
18 | account or accounts in good standing associated with any housing development or developments |
19 | owned or operated by a public agency, nonprofit organization, limited-equity housing cooperative, |
20 | or private developer that receives assistance under any federal, state, or municipal government |
21 | program to assist the construction or rehabilitation of housing affordable to low- or moderate- |
22 | income households, as defined in the applicable federal or state statute, or local ordinance, |
23 | encumbered by a deed restriction or other covenant recorded in the land records of the municipality |
24 | in which the housing is located, that: |
25 | (A) Restricts occupancy of no less than fifty percent (50%) of the housing to households |
26 | with a gross, annual income that does not exceed eighty percent (80%) of the area median income |
27 | as defined annually by the United States Department of Housing and Urban Development (HUD); |
28 | (B) Restricts the monthly rent, including a utility allowance, that may be charged to |
29 | residents, to an amount that does not exceed thirty percent (30%) of the gross, monthly income of |
30 | a household earning eighty percent (80%) of the area median income as defined annually by HUD; |
31 | (C) Has an original term of not less than thirty (30) years from initial occupancy. |
32 | Electric service account or accounts in good standing associated with housing |
33 | developments that are under common ownership or control may be considered a single low- or |
34 | moderate-income housing eligible credit recipient for purposes of this section. The value of the |
| LC004281/SUB A - Page 2 of 15 |
1 | credits shall be used to provide benefits to tenants. |
2 | (iii) “Educational institutions” means public and private schools at the primary, secondary, |
3 | and postsecondary levels. |
4 | (iv) “Commercial or industrial customers” means any nonresidential customer of the |
5 | electric distribution company. |
6 | (5) “Eligible net-metering resource” means eligible renewable energy resource, as defined |
7 | in § 39-26-5 including biogas created as a result of anaerobic digestion, but, specifically excluding |
8 | all other listed eligible biomass fuels. |
9 | (6) “Eligible net-metering system” means a facility generating electricity using an eligible |
10 | net-metering resource that is reasonably designed and sized to annually produce electricity in an |
11 | amount that is equal to, or less than, the renewable self-generator’s usage at the eligible net- |
12 | metering system site measured by the three-year (3) average annual consumption of energy over |
13 | the previous three (3) years at the electric distribution account(s) located at the eligible net-metering |
14 | system site. A projected annual consumption of energy may be used until the actual three-year (3) |
15 | average annual consumption of energy over the previous three (3) years at the electric distribution |
16 | account(s) located at the eligible net-metering system site becomes available for use in determining |
17 | eligibility of the generating system. The eligible net-metering system may be owned by the same |
18 | entity that is the customer of record on the net-metered accounts or may be owned by a third party |
19 | that is not the customer of record at the eligible net-metering system site and which may offer a |
20 | third-party, net-metering financing arrangement or net-metering financing arrangement, as |
21 | applicable. Notwithstanding any other provisions of this chapter, any eligible net-metering |
22 | resource: (i) Owned by a public entity, educational institution, hospital, nonprofit, or multi- |
23 | municipal collaborative; or (ii) Owned and operated by a renewable-generation developer on behalf |
24 | of a public entity, educational institution, hospital, nonprofit, or multi-municipal collaborative |
25 | through a net-metering financing arrangement shall be treated as an eligible net-metering system |
26 | and all accounts designated by the public entity, educational institution, hospital, nonprofit, or |
27 | multi-municipal collaborative for net metering shall be treated as accounts eligible for net metering |
28 | within an eligible net-metering system site; or (iii) Owned and operated by a renewable-generation |
29 | developer on behalf of one or more commercial or industrial customer(s) through net-metering |
30 | financing arrangement(s) shall be treated as an eligible net-metering system within an eligible net- |
31 | metering system site. Notwithstanding any other provision to the contrary, effective July 1, 2060, |
32 | an eligible net-metering system means a facility generating electricity using an eligible net- |
33 | metering resource that is interconnected behind the same meter as the net-metering customer’s load. |
34 | (7) “Eligible net-metering system site” means the site where the eligible net-metering |
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1 | system or community remote net-metering system is located or is part of the same campus or |
2 | complex of sites contiguous to one another and the site where the eligible net-metering system or |
3 | community remote net-metering system is located or a farm on which the eligible net-metering |
4 | system or community remote net-metering system is located. Except for an eligible net-metering |
5 | system owned by or operated on behalf of a public entity, educational institution, hospital, |
6 | nonprofit, or multi-municipal collaborative or for a commercial or industrial customer through a |
7 | net-metering financing arrangement, the purpose of this definition is to reasonably assure that |
8 | energy generated by the eligible net-metering system is consumed by net-metered electric service |
9 | account(s) that are actually located in the same geographical location as the eligible net-metering |
10 | system. All energy generated from any eligible net-metering system is, and will be considered, |
11 | consumed at the meter where the renewable energy resource is interconnected for valuation |
12 | purposes. Except for an eligible net-metering system owned by, or operated on behalf of, a public |
13 | entity, educational institution, hospital, nonprofit, or multi-municipal collaborative, or for a |
14 | commercial or industrial customer through a net-metering financing arrangement, or except for a |
15 | community remote net-metering system, all of the net-metered accounts at the eligible net-metering |
16 | system site must be the accounts of the same customer of record and customers are not permitted |
17 | to enter into agreements or arrangements to change the name on accounts for the purpose of |
18 | artificially expanding the eligible net-metering system site to contiguous sites in an attempt to avoid |
19 | this restriction. However, a property owner may change the nature of the metered service at the |
20 | accounts at the site to be master metered in the owner’s name, or become the customer of record |
21 | for each of the accounts, provided that the owner becoming the customer of record actually owns |
22 | the property at which the account is located. As long as the net-metered accounts meet the |
23 | requirements set forth in this definition, there is no limit on the number of accounts that may be net |
24 | metered within the eligible net-metering system site. |
25 | (8) “Excess renewable net-metering credit” means a credit that applies to an eligible net- |
26 | metering system or community remote net-metering system for that portion of the production of |
27 | electrical energy beyond one hundred percent (100%) and no greater than one hundred twenty-five |
28 | percent (125%) of the renewable self-generator’s own consumption at the eligible net-metering |
29 | system site or the sum of the usage of the eligible credit recipient accounts associated with the |
30 | community remote net-metering system during the applicable billing period. Such excess |
31 | renewable net-metering credit shall be equal to the electric distribution company’s avoided cost |
32 | rate, which is hereby declared to be the electric distribution company’s last resort service kilowatt |
33 | hour (KWh) charge for the rate class and time-of-use billing period (if applicable) applicable to the |
34 | customer of record for the eligible net-metering system or applicable to the customer of record for |
| LC004281/SUB A - Page 4 of 15 |
1 | the community remote net-metering system. The commission shall have the authority to make |
2 | determinations as to the applicability of this credit to specific generation facilities to the extent |
3 | there is any uncertainty or disagreement. |
4 | (9) “Farm” shall be defined in accordance with § 44-27-2, except that all buildings |
5 | associated with the farm shall be eligible for net-metering credits as long as: (i) The buildings are |
6 | owned by the same entity operating the farm or persons associated with operating the farm; and (ii) |
7 | The buildings are on the same farmland as the project on either a tract of land contiguous with, or |
8 | reasonably proximate to, such farmland or across a public way from such farmland. |
9 | (10) “Hospital” means and shall be defined and established as set forth in chapter 17 of |
10 | title 23. |
11 | (11) “Multi-municipal collaborative” means a group of towns and/or cities that enter into |
12 | an agreement for the purpose of co-owning a renewable-generation facility or entering into a |
13 | financing arrangement pursuant to subsection (15). |
14 | (12) “Municipality” means any Rhode Island town or city, including any agency or |
15 | instrumentality thereof, with the powers set forth in title 45. |
16 | (13) “Net metering” means using electrical energy generated by an eligible net-metering |
17 | system for the purpose of self-supplying electrical energy and power at the eligible net-metering |
18 | system site, or with respect to a community remote net-metering system, for the purpose of |
19 | generating net-metering credits to be applied to the electric bills of the eligible credit recipients |
20 | associated with the community net-metering system. The amount so generated will thereby offset |
21 | consumption at the eligible net-metering system site through the netting process established in this |
22 | chapter, or with respect to a community remote net-metering system, the amounts generated in |
23 | excess of that amount will result in credits being applied to the eligible credit-recipient accounts |
24 | associated with the community remote net-metering system. |
25 | (14) “Net-metering customer” means a customer of the electric distribution company |
26 | receiving and being billed for distribution service whose distribution account(s) are being net |
27 | metered. |
28 | (15) “Net-metering financing arrangement” means arrangements entered into by a public |
29 | entity, educational institution, hospital, nonprofit, multi-municipal collaborative, or a commercial |
30 | or industrial customer with a private entity to facilitate the financing and operation of a net-metering |
31 | resource, in which the private entity owns and operates an eligible net-metering resource on behalf |
32 | of a public entity, educational institution, hospital, nonprofit, multi-municipal collaborative, or |
33 | commercial or industrial customer, where: (i) The eligible net-metering resource is located on |
34 | property owned or controlled by the public entity, educational institution, hospital, municipality, |
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1 | multi-municipal collaborative, or commercial or industrial customer as applicable; and (ii) The |
2 | production from the eligible net-metering resource and primary compensation paid by the public |
3 | entity, educational institution, hospital, nonprofit, multi-municipal collaborative, or commercial or |
4 | industrial customer to the private entity for such production is directly tied to the consumption of |
5 | electricity occurring at the designated net-metered accounts. |
6 | (16) “Nonprofit” means a nonprofit corporation as defined and established through chapter |
7 | 6 of title 7, and shall include religious organizations that are tax exempt pursuant to 26 U.S.C. § |
8 | 501(d). |
9 | (17) “Person” means an individual, firm, corporation, association, partnership, farm, town |
10 | or city of the state of Rhode Island, multi-municipal collaborative, or the state of Rhode Island or |
11 | any department of the state government, governmental agency, or public instrumentality of the |
12 | state. |
13 | (18) “Preferred site” means a location for a renewable energy system that has had prior |
14 | development, including, but not limited to: landfills, gravel pits and quarries, highway and major |
15 | road median strips, brownfields, superfund sites, parking lots or sites that are designated |
16 | appropriate for carports, and all rooftops including, but not limited to, residential, commercial, |
17 | industrial, and municipal buildings. |
18 | (19) “Project” means a distinct installation of an eligible net-metering system or a |
19 | community remote net-metering system. An installation will be considered distinct if it is installed |
20 | in a different location, or at a different time, or involves a different type of renewable energy. |
21 | Subject to the safe-harbor provisions in § 39-26.4-3(a)(1), new and distinct projects cannot be |
22 | located on adjoining parcels of land within core forests, except for preferred sites. |
23 | (20) “Public entity” means the federal government, the state of Rhode Island, |
24 | municipalities, wastewater treatment facilities, public transit agencies, or any water distributing |
25 | plant or system employed for the distribution of water to the consuming public within this state |
26 | including the water supply board of the city of Providence. |
27 | (21) “Public entity net-metering system” means a system generating renewable energy at |
28 | a property owned or controlled by the public entity that is participating in a net-metering financing |
29 | arrangement where the public entity has designated accounts in its name to receive net-metering |
30 | credits. |
31 | (22) “Renewable net-metering credit” means a credit that applies to an eligible net- |
32 | metering system or a community remote net-metering system up to one hundred percent (100%) of |
33 | either the renewable self-generator’s usage at the eligible net-metering system site or the sum of |
34 | the usage of the eligible credit-recipient accounts associated with the community remote net- |
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1 | metering system over the applicable billing period. This credit shall be equal to the total kilowatt |
2 | hours of electrical energy generated up to the amount consumed on-site, and/or generated up to the |
3 | sum of the eligible credit-recipient account usage during the billing period multiplied by the sum |
4 | of the distribution company’s: |
5 | (i) Last resort service kilowatt-hour charge for the rate class applicable to the net-metering |
6 | customer, except that for remote public entity and multi-municipality collaborative net-metering |
7 | systems that submit an application for an interconnection study on or after July 1, 2017, and |
8 | community remote net-metering systems, the last resort service kilowatt-hour charge shall be net |
9 | of the renewable energy standard charge or credit; |
10 | (ii) Distribution kilowatt-hour charge; |
11 | (iii) Transmission kilowatt-hour charge; and |
12 | (iv) Transition kilowatt-hour charge. |
13 | For projects after April 15, 2023, subject to the allowable two hundred seventy-five |
14 | megawatts alternating current (275 MWac), under § 39-26.4-3(a)(1)(vi), the credit shall be reduced |
15 | by twenty percent (20%). |
16 | Notwithstanding the foregoing, except for systems that have requested an interconnection |
17 | study for which payment has been received by the distribution company, or if an interconnection |
18 | study is not required, a completed and paid interconnection application, by December 31, 2018, the |
19 | renewable net-metering credit for all remote public entity and multi-municipal collaborative net- |
20 | metering systems shall not include the distribution kilowatt-hour charge commencing on January |
21 | 1, 2050. |
22 | (23) “Renewable self-generator” means an electric distribution service customer of record |
23 | for the eligible net-metering system or community remote net-metering system at the eligible net- |
24 | metering system site which system is primarily designed to produce electrical energy for |
25 | consumption by that same customer at its distribution service account(s), and/or, with respect to |
26 | community remote net-metering systems, electrical energy which generates net-metering credits to |
27 | be applied to offset the eligible credit-recipient account usage. |
28 | (24) “Third party” means and includes any person or entity, other than the renewable self- |
29 | generator, who or that owns or operates the eligible net-metering system or community remote net- |
30 | metering system on the eligible net-metering system site for the benefit of the renewable self- |
31 | generator. |
32 | (25) “Third-party, net-metering financing arrangement” means the financing of eligible |
33 | net-metering systems or community remote net-metering systems through lease arrangements or |
34 | power/credit purchase agreements between a third party and renewable self-generator, except for |
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1 | those entities under a public entity net-metering financing arrangement. A third party engaged in |
2 | providing financing arrangements related to such net-metering systems with a public or private |
3 | entity is not a public utility as defined in § 39-1-2. |
4 | 39-26.4-3. Net metering. |
5 | (a) The following policies regarding net metering of electricity from eligible net-metering |
6 | systems and community remote net-metering systems and regarding any person that is a renewable |
7 | self-generator shall apply: |
8 | (1)(i) The maximum allowable capacity for eligible net-metering systems, based on |
9 | nameplate capacity, shall be ten megawatts (10 MW). |
10 | (ii) Eligible net-metering systems shall be sited outside of core forests with the exception |
11 | of development on preferred sites in the core forest and the exception of systems that, as of April |
12 | 15, 2023, (A) Have submitted a complete application to the appropriate municipality for any |
13 | required permits and/or zoning changes, or (B) Have requested an interconnection study for which |
14 | payment has been received by the distribution company, or (C) If an interconnection study is not |
15 | required, systems that have a completed and paid interconnection application. |
16 | (iii) For systems developed in core forests on preferred sites, no more than one hundred |
17 | thousand square feet (100,000 sq. ft) of core forest shall be removed, including except for work |
18 | required for utility interconnection or development of a brownfield, in which case no more core |
19 | forest than necessary for interconnection or brownfield development shall be removed. |
20 | (iv) The aggregate amount of net metering in the Block Island Utility District doing |
21 | business as Block Island Power Company and the Pascoag Utility District shall not exceed a |
22 | maximum percentage of peak load for each utility district as set by the utility district based on its |
23 | operational characteristics, subject to commission approval. |
24 | (v) Through December 31, 2018, the maximum aggregate amount of community remote |
25 | net-metering systems built shall be thirty megawatts (30 MW). Any of the unused MW amount |
26 | after December 31, 2018, shall remain available to community remote net-metering systems until |
27 | the MW aggregate amount is interconnected. |
28 | (vi) The maximum aggregate capacity of remote net metering allowable for ground- |
29 | mounted eligible net-metering systems, as defined by § 39-26.4-2(6), with the exception of systems |
30 | that have, as of April 15, 2023, submitted a complete application to the appropriate municipality |
31 | for any required permits and/or zoning changes or have requested an interconnection study for |
32 | which payment has been received by the distribution company, or if an interconnection study is not |
33 | required, a completed and paid interconnection application by the distribution company date of |
34 | passage as of June 24, 2023, shall be two hundred seventy-five megawatts, alternating current (275 |
| LC004281/SUB A - Page 8 of 15 |
1 | MWac MWAC), excluding off-shore wind. None of the systems to which this cap applies shall be |
2 | in core forests unless on a preferred site located within the core forest. A project counts against this |
3 | maximum if it is in operation or under construction by July 1, 2030, as determined by the local |
4 | distribution company. All eligible ground-mounted net-metering systems must be under |
5 | construction or in operation by July 1, 2030. This restriction shall not apply to the following: (A) |
6 | The eligible net-metering system is interconnected behind the same meter as the net-metering |
7 | customer’s load; and/or (B) The energy generated by the eligible net-metering system is consumed |
8 | by net-metered electric service account(s) of the same owner of record that are actually located on |
9 | the same or contiguous parcels as the eligible net-metering system. |
10 | (2) For ease of administering net-metered accounts and stabilizing net-metered account |
11 | bills, the electric distribution company may elect (but is not required) to estimate for any twelve- |
12 | month (12) period: |
13 | (i) The production from the eligible net-metering system or community remote net- |
14 | metering system; and |
15 | (ii) Aggregate consumption of the net-metered accounts at the eligible net-metering system |
16 | site or the sum of the consumption of the eligible credit-recipient accounts associated with the |
17 | community remote net-metering system, and establish a monthly billing plan that reflects the |
18 | expected credits that would be applied to the net-metered accounts over twelve (12) months. The |
19 | billing plan would be designed to even out monthly billings over twelve (12) months, regardless of |
20 | actual production and usage. If such election is made by the electric distribution company, the |
21 | electric distribution company would reconcile payments and credits under the billing plan to actual |
22 | production and consumption at the end of the twelve-month (12) period and apply any credits or |
23 | charges to the net-metered accounts for any positive or negative difference, as applicable. Should |
24 | there be a material change in circumstances at the eligible net-metering system site or associated |
25 | accounts during the twelve-month (12) period, the estimates and credits may be adjusted by the |
26 | electric distribution company during the reconciliation period. The electric distribution company |
27 | also may elect (but is not required) to issue checks to any net-metering customer in lieu of billing |
28 | credits or carry-forward credits or charges to the next billing period. For residential-eligible net- |
29 | metering systems and community remote net-metering systems twenty-five kilowatts (25 KW) or |
30 | smaller, the electric distribution company, at its option, may administer renewable net-metering |
31 | credits month to month allowing unused credits to carry forward into the following billing period. |
32 | (3) If the electricity generated by an eligible net-metering system or community remote |
33 | net-metering system during a billing period is equal to, or less than, the net-metering customer’s |
34 | usage at the eligible net-metering system site or the sum of the usage of the eligible credit-recipient |
| LC004281/SUB A - Page 9 of 15 |
1 | accounts associated with the community remote net-metering system during the billing period, the |
2 | customer shall receive renewable net-metering credits, that shall be applied to offset the net- |
3 | metering customer’s usage on accounts at the eligible net-metering system site, or shall be used to |
4 | credit the eligible credit-recipient’s electric account. |
5 | (4) If the electricity generated by an eligible net-metering system or community remote |
6 | net-metering system during a billing period is greater than the net-metering customer’s usage on |
7 | accounts at the eligible net-metering system site or the sum of the usage of the eligible credit- |
8 | recipient accounts associated with the community remote net-metering system during the billing |
9 | period, the customer shall be paid by excess renewable net-metering credits for the excess |
10 | electricity generated up to an additional twenty-five percent (25%) beyond the net-metering |
11 | customer’s usage at the eligible net-metering system site, or the sum of the usage of the eligible |
12 | credit-recipient accounts associated with the community remote net-metering system during the |
13 | billing period; unless the electric distribution company and net-metering customer have agreed to |
14 | a billing plan pursuant to subsection (a)(2). |
15 | (5) The rates applicable to any net-metered account shall be the same as those that apply |
16 | to the rate classification that would be applicable to such account in the absence of net metering, |
17 | including customer and demand charges, and no other charges may be imposed to offset net- |
18 | metering credits. |
19 | (b) The commission shall exempt electric distribution company customer accounts |
20 | associated with an eligible net-metering system from back-up or standby rates commensurate with |
21 | the size of the eligible net-metering system, provided that any revenue shortfall caused by any such |
22 | exemption shall be fully recovered by the electric distribution company through rates. |
23 | (c) Any prudent and reasonable costs incurred by the electric distribution company |
24 | pursuant to achieving compliance with subsection (a) and the annual amount of any renewable net- |
25 | metering credits or excess renewable net-metering credits provided to accounts associated with |
26 | eligible net-metering systems or community remote net-metering systems, shall be aggregated by |
27 | the distribution company and billed to all distribution customers on an annual basis through a |
28 | uniform, per-kilowatt-hour (KWh) surcharge embedded in the distribution component of the rates |
29 | reflected on customer bills. |
30 | (d) The billing process set out in this section shall be applicable to electric distribution |
31 | companies thirty (30) days after the enactment of this chapter. |
32 | (e) The Rhode Island office of energy resources shall redesign the community solar remote |
33 | net metering program to reflect the provisions of this chapter and to include a commercial or |
34 | industrial anchor tenant up to but not to exceed fifty percent (50%) of the project. The remaining |
| LC004281/SUB A - Page 10 of 15 |
1 | fifty percent (50%) must be allocated or subscribed to low- and moderate-income (LMI) residents |
2 | and/or those living in areas defined as disadvantaged and environmental justice communities. The |
3 | Rhode Island office of energy resources shall design the net metering credit rate and factor in |
4 | federal energy funding and tax credits to develop the most cost-effective rate for community solar |
5 | projects. It is expected that these projects will be operational for a twenty-year (20) period. The |
6 | Rhode Island office of energy resources shall file a benefit and cost analysis with any program |
7 | proposal filed to the Rhode Island public utilities commission. Once the Rhode Island office of |
8 | energy resources files a program proposal to the Rhode Island public utilities commission, a docket |
9 | shall be established, and the Rhode Island public utilities commission shall issue a ruling on the |
10 | program no later than one hundred and fifty (150) days. If a program is approved, it will be subject |
11 | to no greater than twenty megawatts (20 MW) per year for two years until the forty megawatts (40 |
12 | MW) cap is met. Eligible net-metering systems shall be sited outside of core forests with the |
13 | exception of development on preferred sites in the core forest. |
14 | SECTION 2. Sections 39-26.6-1 and 39-26.6-3 of the General Laws in Chapter 39-26.6 |
15 | entitled "The Renewable Energy Growth Program" are hereby amended to read as follows: |
16 | 39-26.6-1. Purpose. |
17 | The purpose of this chapter is to enable the state to meet its climate and resilience goals, |
18 | including those established in the act on climate. This includes the goals to facilitate and promote |
19 | installation of grid-connected generation of renewable energy; support and encourage development |
20 | of distributed renewable energy generation systems while protecting important core forest areas |
21 | essential to climate resilience and complying with Rhode Island’s climate change mandates; reduce |
22 | environmental impacts; reduce carbon emissions that contribute to climate change by encouraging |
23 | the siting of renewable energy projects in the load zone of the electric distribution company and in |
24 | preferred areas that have already been disturbed by industry or other uses; diversify the energy- |
25 | generation sources within the load zone of the electric distribution company; stimulate economic |
26 | development; and improve distribution-system resilience and reliability with within the load zone |
27 | of the electric distribution company. |
28 | 39-26.6-3. Definitions. |
29 | When used in this chapter, the following terms shall have the following meanings: |
30 | (1) “Board” shall mean the distributed-generation board as established pursuant to the |
31 | provisions of § 39-26.2-10 under the title distributed generation standard contract board, but shall |
32 | also fulfill the responsibilities set forth in this chapter. |
33 | (2) “Ceiling price” means the bidding price cap(s) applicable to each annual enrollment for |
34 | a given distributed-generation class, that shall be approved for each renewable energy class |
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1 | pursuant to the procedure established in this chapter. The ceiling price(s) are not required to, but |
2 | may be, approved for up to three years. The ceiling price for each technology should be a price that |
3 | would allow a private owner to invest in a given project at a reasonable rate of return, based on |
4 | recently reported and forecast information on the cost of capital and the cost of generation |
5 | equipment. The calculation of the reasonable rate of return for a project shall include, where |
6 | applicable, any state or federal incentives, including, but not limited to, tax incentives. Nothing |
7 | shall prohibit the distributed-generation board from proposing revised ceiling prices prior to a |
8 | program year to account for changes to available federal or state tax incentives, trade tariffs, or |
9 | other federal or state incentives that would affect the calculation of the rate of return on a project. |
10 | (3) “Commercial-scale solar project” means a solar distributed-generation project with the |
11 | nameplate capacity specified in § 39-26.6-7. |
12 | (4) “Commission” means the Rhode Island public utilities commission. |
13 | (5) “Community remote distributed-generation system” means a distributed-generation |
14 | facility greater than two hundred fifty kilowatt (250 KW) nameplate direct current that allocates |
15 | bill credits for each kilowatt hour (KWh) generated to a minimum of three (3), eligible recipient- |
16 | customer accounts, provided that no more than fifty percent (50%) of the credits produced by the |
17 | system are allocated to one eligible recipient-customer account, and provided further that at least |
18 | fifty percent (50%) of the credits produced by the system are allocated to eligible recipients in an |
19 | amount not to exceed that which is produced annually by twenty-five kilowatt (25 KW) AC |
20 | capacity. The community remote distributed-generation system may transfer credits to eligible |
21 | recipient-customer accounts in an amount that is equal to, or less than, the sum of the usage of the |
22 | eligible recipient-customer accounts measured by the three-year-average (3) annual consumption |
23 | of energy over the previous three (3) years. A projected, annual consumption of energy may be |
24 | used until the actual three-year-average (3) annual consumption of energy over the previous three |
25 | (3) years at the eligible recipient-customer accounts becomes available for use in determining |
26 | eligibility of the generating system. The community remote distributed-generation system may be |
27 | owned by the same entity that is the customer of record on the net-metered account or may be |
28 | owned by a third party. |
29 | (6) “Core forest” refers to unfragmented forest blocks of single or multiple parcels totaling |
30 | two hundred fifty (250) acres or greater unbroken by development and at least twenty-five (25) |
31 | acres yards from mapped roads, with eligibility questions to be resolved by the director of the |
32 | department of environmental management. Such determination shall constitute a contested case as |
33 | defined in § 42-35-1. Notwithstanding any other provisions of this chapter, no renewable- |
34 | distributed-generation project that is located or planned to be located in or on a core forest, shall be |
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1 | considered an eligible renewable-distributed-generation project or otherwise be eligible to |
2 | participate in this program, unless it is on a preferred site. |
3 | (7) “Distributed-generation facility” means an electrical-generation facility located in the |
4 | electric distribution company’s load zone with a nameplate capacity no greater than five megawatts |
5 | (5 MW), except for solar projects as described in § 39-26.6-7 that may exceed five megawatts (5 |
6 | MW) but shall not be greater than fifteen megawatts (15 MW), unless located on preferred sites, in |
7 | which case they may be sized up to thirty-nine megawatts (39 MW), using eligible renewable |
8 | energy resources as defined by § 39-26-5, including biogas created as a result of anaerobic |
9 | digestion, but, specifically excluding all other listed eligible biomass fuels, and connected to an |
10 | electrical power system owned, controlled, or operated by the electric distribution company. For |
11 | facilities developed in core forests on preferred sites, no more than one hundred thousand square |
12 | feet (100,000 sq. ft.) of core forest shall be removed, including for work required for utility |
13 | interconnection or development of a brownfield, in which case no more core forest than necessary |
14 | for interconnection or brownfield development shall be removed. For purposes of this chapter, a |
15 | distributed-generation facility must be a new resource that: |
16 | (i) Has not begun operation; |
17 | (ii) Is not under construction, but excluding preparatory site work that is less than twenty- |
18 | five percent (25%) of the estimated total project cost; and |
19 | (iii) Except for small-scale solar projects, does not have in place investment or lending |
20 | agreements necessary to finance the construction of the facility prior to the submittal of an |
21 | application or bid for which the payment of performance-based incentives is sought under this |
22 | chapter except to the extent that such financing agreements are conditioned upon the project owner |
23 | being awarded performance-based incentives under the provisions of this chapter. For purposes of |
24 | this definition, preexisting hydro generation shall be exempt from the provisions of subsection |
25 | (7)(i) regarding operation, if the hydro-generation facility will need a material investment to restore |
26 | or maintain reliable and efficient operation and meet all regulatory, environmental, or operational |
27 | requirements. For purposes of this provision, “material investment” shall mean investment |
28 | necessary to allow the project to qualify as a new, renewable energy resource under § 39-26-2. To |
29 | be eligible for this exemption, the hydro-project developer at the time of submitting a bid in the |
30 | applicable procurement must provide reasonable evidence with its bid application showing the level |
31 | of investment needed, along with any other facts that support a finding that the investment is |
32 | material, the determination of which shall be a part of the bid review process set forth in § 39-26.6- |
33 | 16 for the award of bids. |
34 | (8) “Distributed-generation project” means a distinct installation of a distributed- |
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1 | generation facility. An installation will be considered distinct if it does not violate the segmentation |
2 | prohibition set forth in § 39-26.6-9. |
3 | (9) “Electric distribution company” means a company defined in § 39-1-2(a)(12), |
4 | supplying standard-offer service, last-resort service, or any successor service to end-use customers, |
5 | but not including the Block Island Power Company or the Pascoag Utility District. |
6 | (10) “ISO-NE” means Independent System Operator-New England, the Regional |
7 | Transmission Organization for New England designated by the Federal Energy Regulatory |
8 | Commission. |
9 | (11) “Large distributed-generation project” means a distributed-generation project that has |
10 | a nameplate capacity that exceeds the size of a small distributed-generation project in a given year, |
11 | but is no greater than five megawatts (5 MW) nameplate capacity. |
12 | (12) “Large-scale solar project” means a solar distributed-generation project with the |
13 | nameplate capacity specified in § 39-26.6-7. |
14 | (13) “Medium-scale solar project” means a solar distributed-generation project with the |
15 | nameplate capacity specified in § 39-26.6-7. |
16 | (14) “Office” means the Rhode Island office of energy resources. |
17 | (15) “Preferred sites” means a location for a renewable energy system that has had prior |
18 | development, including, but not limited to: landfills, gravel pits and quarries, highway and major |
19 | road median strips, brownfields, superfund sites, parking lots or sites that are designated |
20 | appropriate for carports, and all rooftops including, but not limited to, residential, commercial, |
21 | industrial and municipal buildings. |
22 | (16) “Program year” means a year beginning April 1 and ending March 31, except for the |
23 | first program year, that may commence after April 1, 2015, subject to commission approval. |
24 | (17) “Renewable energy certificate” means a New England Generation Information System |
25 | renewable energy certificate as defined in § 39-26-2(14). |
26 | (18) “Renewable energy classes” means categories for different renewable energy |
27 | technologies using eligible renewable energy resources as defined by § 39-26-5, including biogas |
28 | created as a result of anaerobic digestion, but, specifically excluding all other listed eligible biomass |
29 | fuels specified in § 39-26-2(6). For each program year, in addition to the classes of solar distributed |
30 | generation specified in § 39-26.6-7, the board shall determine the renewable energy classes as are |
31 | reasonably feasible for use in meeting distributed-generation objectives from renewable energy |
32 | resources and are consistent with the goal of meeting the annual target for the program year. The |
33 | board may make recommendations to the commission to add, eliminate, or adjust renewable energy |
34 | classes for each program year, provided that the solar classifications set forth in § 39-26.6-7 shall |
| LC004281/SUB A - Page 14 of 15 |
1 | remain in effect for at least the first two (2) program years and no distributed-generation project |
2 | may exceed five megawatts (5 MW) of nameplate capacity except for solar projects as described |
3 | in § 39-26.6-7. |
4 | (19) “Shared solar facility” means a single small-scale or medium-scale solar facility that |
5 | must allocate bill credits to at least two (2), and no more than fifty (50), accounts in the same |
6 | customer class and on the same or adjacent parcels of land. Public entities may allocate such bill |
7 | credits to at least two (2), and up to fifty (50), accounts without regard to physical location so long |
8 | as the facility and accounts are within the same municipality. In no case will the annual allocated |
9 | credits in KWh exceed the prior three-year (3) annual average usage, less any reductions for verified |
10 | energy-efficiency measures installed at the customer premises, of the customer account to which |
11 | the bill credits are transferred. |
12 | (20) “Small distributed-generation project” means a distributed-generation renewable |
13 | energy project that has a nameplate capacity within the following: Wind: fifty kilowatts (50 KW) |
14 | to one and one-half megawatts (1.5 MW); small-scale solar projects and medium-scale solar |
15 | projects with the capacity limits as specified in § 39-26.6-7. For technologies other than solar and |
16 | wind, the board shall set the nameplate capacity-size limits, but such limits may not exceed one |
17 | megawatt (1 MW). |
18 | (21) “Small-scale solar project” means a solar distributed-generation project with the |
19 | nameplate capacity specified in § 39-26.6-7. |
20 | SECTION 3. This act shall take effect upon passage. |
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LC004281/SUB A | |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO PUBLIC UTILITIES AND CARRIERS -- NET METERING | |
*** | |
1 | This act modifies the definition of “core forest” to refer to unfragmented forest blocks or |
2 | single or multiple parcels totaling two hundred fifty (250) acres or greater unbroken by |
3 | development and at least twenty-five (25) yards from mapped roads, instead of twenty-five (25) |
4 | acres from mapped roads. |
5 | This act would take effect upon passage. |
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LC004281/SUB A | |
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