2020 -- H 7775 | |
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LC004376 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2020 | |
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A N A C T | |
RELATING TO PUBLIC UTILITIES AND CARRIERS -- NET-METERING | |
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Introduced By: Representatives Blazejewski, Ruggiero, Shanley, Cortvriend, and | |
Date Introduced: February 26, 2020 | |
Referred To: House Corporations | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Sections 39-26.4-2 and 39-26.4-3 of the General Laws in Chapter 39-26.4 |
2 | entitled "Net Metering" are hereby amended to read as follows: |
3 | 39-26.4-2. Definitions. |
4 | Terms not defined in this section herein shall have the same meaning as contained in |
5 | chapter 26 of title 39 of the general laws. When used in this chapter: |
6 | (1) "Community remote-net-metering system" means a facility generating electricity |
7 | using an eligible net-metering resource that allocates net-metering credits to a minimum of one |
8 | account for system associated with low or moderate housing eligible credit recipients, or three (3) |
9 | eligible credit-recipient customer accounts, provided that no more than fifty percent (50%) of the |
10 | 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 |
15 | of the eligible credit recipient accounts measured by the three-year (3) average annual |
16 | consumption of energy over the previous three (3) years. A projected annual consumption of |
17 | energy may be used until the actual three-year (3) average annual consumption of energy over the |
18 | previous three (3) years at the eligible credit recipient accounts becomes available for use in |
19 | determining eligibility of the generating system. The community remote-net-metering system |
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1 | may be owned by the same entity that is the customer of record on the net-metered account or |
2 | may be owned by a third party. |
3 | (2) "Electric-distribution company" shall have the same meaning as § 39-1-2, but shall |
4 | not include block island power company or Pascoag utility district, each of whom shall be |
5 | required to offer net metering to customers through a tariff approved by the public utilities |
6 | commission after a public hearing. Any tariff or policy on file with the public utilities |
7 | commission on the date of passage of this chapter shall remain in effect until the commission |
8 | approves a new tariff. |
9 | (3) "Eligible credit recipient" means one of the following eligible recipients in the |
10 | electric-distribution company's service territory whose electric service account or accounts may |
11 | receive net-metering credits from a community remote net-metering system. Eligible credit |
12 | recipients include the following definitions: |
13 | (i) Residential accounts in good standing. |
14 | (ii) "Low- or moderate-income housing eligible credit recipient" means an electric service |
15 | account or accounts in good standing associated with any housing development or developments |
16 | owned or operated by a public agency, nonprofit organization, limited-equity housing |
17 | cooperative, or private developer, that receives assistance under any federal, state, or municipal |
18 | government program to assist the construction or rehabilitation of housing affordable to low- or |
19 | moderate-income households, as defined in the applicable federal or state statute, or local |
20 | ordinance, encumbered by a deed restriction or other covenant recorded in the land records of the |
21 | municipality in which the housing is located, that: |
22 | (A) Restricts occupancy of no less than fifty percent (50%) of the housing to households |
23 | with a gross, annual income that does not exceed eighty percent (80%) of the area median income |
24 | as defined annually by the United States Department of Housing and Urban Development (HUD); |
25 | (B) Restricts the monthly rent, including a utility allowance, that may be charged to |
26 | residents, to an amount that does not exceed thirty percent (30%) of the gross, monthly income of |
27 | a household earning eighty percent (80%) of the area, median income as defined annually by |
28 | HUD; |
29 | (C) That has an original term of not less than thirty (30) years from initial occupancy. |
30 | Electric service account or accounts in good standing associated with housing |
31 | developments that are under common ownership or control may be considered a single low- or |
32 | moderate-income housing-eligible credit recipient for purposes of this section. The value of the |
33 | credits shall be used to provide benefits to tenants. |
34 | (iii) "Educational institutions" means public and private schools at the primary, |
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1 | secondary, and postsecondary levels. |
2 | (4) "Eligible net-metering resource" means eligible renewable-energy resource, as |
3 | defined in § 39-26-5 including biogas created as a result of anaerobic digestion, but, specifically |
4 | excluding all other listed eligible biomass fuels. |
5 | (5) "Eligible net-metering system" means a facility generating electricity using an eligible |
6 | net-metering resource that is reasonably designed and sized to annually produce electricity in an |
7 | amount that is equal to, or less than, the renewable self-generator's usage at the eligible net- |
8 | metering-system site measured by the three-year (3) average annual consumption of energy over |
9 | the previous three (3) years at the electric-distribution account(s) located at the eligible net- |
10 | metering-system site. A projected annual consumption of energy may be used until the actual |
11 | three-year (3) average annual consumption of energy over the previous three (3) years at the |
12 | electric-distribution account(s) located at the eligible net-metering-system site becomes available |
13 | for use in determining eligibility of the generating system. The eligible net-metering system may |
14 | be owned by the same entity that is the customer of record on the net-metered accounts or may be |
15 | owned by a third party that is not the customer of record at the eligible net-metering system site |
16 | and which may offer a third-party, net-metering financing arrangement or net-metering financing |
17 | arrangement, as applicable. Notwithstanding any other provisions of this chapter, any eligible net- |
18 | metering resource: (i) Owned by a public entity, educational institution, hospital, nonprofit, or |
19 | multi-municipal multi-party collaborative or (ii) Owned and operated by a renewable-generation |
20 | developer on behalf of a public entity, educational institution, hospital, nonprofit, or multi- |
21 | municipal multi-party collaborative through net-metering financing arrangement shall be treated |
22 | as an eligible net-metering system and all accounts designated by the public entity, educational |
23 | institution, hospital, nonprofit, or multi-municipal multi-party collaborative for net metering shall |
24 | be treated as accounts eligible for net metering within an eligible net-metering-system site. |
25 | (6) "Eligible net-metering-system site" means the site where the eligible net-metering |
26 | system or community remote net-metering system is located or is part of the same campus or |
27 | complex of sites contiguous to one another and the site where the eligible net-metering system or |
28 | community remote-net-metering system is located or a farm in which the eligible net-metering |
29 | system or community remote-net-metering system is located. Except for an eligible net-metering |
30 | system owned by or operated on behalf of a public entity, educational institution, hospital, |
31 | nonprofit, or multi-municipal multi-party collaborative through a net-metering financing |
32 | arrangement, the purpose of this definition is to reasonably assure that energy generated by the |
33 | eligible net-metering system is consumed by net-metered electric service account(s) that are |
34 | actually located in the same geographical location as the eligible net-metering system. All energy |
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1 | generated from any eligible net-metering system is, and will be considered, consumed at the |
2 | meter where the renewable-energy resource is interconnected for valuation purposes. Except for |
3 | an eligible net-metering system owned by, or operated on behalf of, a public entity, educational |
4 | institution, hospital, nonprofit, or multi-municipal multi-party collaborative through a net- |
5 | metering financing arrangement, or except for a community remote-net-metering system, all of |
6 | the net-metered accounts at the eligible net-metering-system site must be the accounts of the same |
7 | customer of record and customers are not permitted to enter into agreements or arrangements to |
8 | change the name on accounts for the purpose of artificially expanding the eligible net-metering- |
9 | system site to contiguous sites in an attempt to avoid this restriction. However, a property owner |
10 | may change the nature of the metered service at the accounts at the site to be master metered in |
11 | the owner's name, or become the customer of record for each of the accounts, provided that the |
12 | owner becoming the customer of record actually owns the property at which the account is |
13 | located. As long as the net-metered accounts meet the requirements set forth in this definition, |
14 | there is no limit on the number of accounts that may be net metered within the eligible net- |
15 | metering-system site. |
16 | (7) "Excess renewable net-metering credit" means a credit that applies to an eligible net- |
17 | metering system or community remote-net-metering system for that portion of the production of |
18 | electrical energy beyond one hundred percent (100%) and no greater than one hundred twenty- |
19 | five percent (125%) of the renewable self-generator's own consumption at the eligible net- |
20 | metering-system site or the sum of the usage of the eligible credit recipient accounts associated |
21 | with the community remote-net-metering system during the applicable billing period. Such excess |
22 | renewable net-metering credit shall be equal to the electric-distribution company's avoided cost |
23 | rate, which is hereby declared to be the electric-distribution company's standard offer service |
24 | kilowatt hour (kWh) charge for the rate class and time-of-use billing period (if applicable) |
25 | applicable to the customer of record for the eligible net-metering system or applicable to the |
26 | customer of record for the community remote-net-metering system. The commission shall have |
27 | the authority to make determinations as to the applicability of this credit to specific generation |
28 | facilities to the extent there is any uncertainty or disagreement. |
29 | (8) "Farm" shall be defined in accordance with § 44-27-2, except that all buildings |
30 | associated with the farm shall be eligible for net-metering credits as long as: (i) The buildings are |
31 | owned by the same entity operating the farm or persons associated with operating the farm; and |
32 | (ii) The buildings are on the same farmland as the project on either a tract of land contiguous |
33 | with, or reasonably proximate to, such farmland or across a public way from such farmland. |
34 | (9) "Hospital" means and shall be defined and established as set forth in chapter 17 of |
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1 | title 23. |
2 | (10) "Multi-municipal collaborative" means a group of towns and/or cities that enter into |
3 | an agreement for the purpose of co-owning a renewable-generation facility or entering into a |
4 | financing arrangement pursuant to subdivision (14). "Multi-party collaborative" means any |
5 | combination of two (2) or more eligible parties that enter into an agreement for the purpose of co- |
6 | owning one or more eligible net-metering resources or entering into financing arrangement(s) for |
7 | the financing and operation of one or more eligible net-metering resources pursuant to § 39-26.4- |
8 | 2(14). For purposes of this subsection, "eligible parties" means public entities, educational |
9 | institutions, hospitals and nonprofits. |
10 | (11) "Municipality" means any Rhode Island town or city, including any agency or |
11 | instrumentality thereof, with the powers set forth in title 45 of the general laws. |
12 | (12) "Net metering" means using electrical energy generated by an eligible, net-metering |
13 | system for the purpose of self-supplying electrical energy and power at the eligible net-metering- |
14 | system site, or with respect to a community remote-net-metering system, for the purpose of |
15 | generating net-metering credits to be applied to the electric bills of the eligible credit recipients |
16 | associated with the community net-metering system. The amount so generated will thereby offset |
17 | consumption at the eligible net-metering system site through the netting process established in |
18 | this chapter, or with respect to a community remote-net-metering system, the amounts generated |
19 | in excess of that amount will result in credits being applied to the eligible credit-recipient |
20 | accounts associated with the community remote-net-metering system. |
21 | (13) "Net-metering customer" means a customer of the electric-distribution company |
22 | receiving and being billed for distribution service whose distribution account(s) are being net |
23 | metered. |
24 | (14) "Net-metering financing arrangement" means arrangements entered into by a public |
25 | entity, educational institution, hospital, nonprofit, or multi-municipal multi-party collaborative |
26 | with a private entity to facilitate the financing and operation of a net-metering resource, in which |
27 | the private entity owns and operates an eligible net-metering resource on behalf of a public entity, |
28 | educational institution, hospital, nonprofit, or multi-municipal multi-party collaborative, where: |
29 | (i) The eligible net-metering resource is located on property owned or controlled by the public |
30 | entity, educational institution, hospital, or one of the municipalities, as applicable, and (ii) The |
31 | production from the eligible net-metering resource and primary compensation paid by the public |
32 | entity, educational institution, hospital, nonprofit, or multi-municipal multi-party collaborative to |
33 | the private entity for such production is directly tied to the consumption of electricity occurring at |
34 | the designated net-metered accounts. |
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1 | (15) "Nonprofit" means a nonprofit corporation as defined and established through |
2 | chapter 6 of title 7, and shall include religious organizations that are tax exempt pursuant to 26 |
3 | U.S.C. § 501(d). |
4 | (16) "Person" means an individual, firm, corporation, association, partnership, farm, town |
5 | or city of the State of Rhode Island, multi-municipal multi-party collaborative, or the State of |
6 | Rhode Island or any department of the state government, governmental agency, or public |
7 | instrumentality of the state. |
8 | (17) "Project" means a distinct installation of an eligible net-metering system or a |
9 | community remote-net-metering system. An installation will be considered distinct if it is |
10 | installed in a different location, or at a different time, or involves a different type of renewable |
11 | energy. |
12 | (18) "Public entity" means the federal government, the state of Rhode Island, |
13 | municipalities, wastewater treatment facilities, public transit agencies, or any water distributing |
14 | plant or system employed for the distribution of water to the consuming public within this state |
15 | including the water supply board of the city of Providence. |
16 | (19) "Renewable net-metering credit" means a credit that applies to an eligible net- |
17 | metering system or a community remote-net-metering system up to one hundred percent (100%) |
18 | of either the renewable self-generator's usage at the eligible net-metering-system site or the sum |
19 | of the usage of the eligible credit-recipient accounts associated with the community remote net- |
20 | metering system over the applicable billing period. This credit shall be equal to the total kilowatt |
21 | hours of electrical energy generated up to the amount consumed on-site, and/or generated up to |
22 | the sum of the eligible credit-recipient account usage during the billing period multiplied by the |
23 | sum of the distribution company's: |
24 | (i) Standard offer service kilowatt hour charge for the rate class applicable to the net- |
25 | metering customer, except that for remote public entity and multi-municipality multi-party |
26 | collaborative net-metering systems that submit an application for an interconnection study on or |
27 | after July 1, 2017, and community remote-net-metering systems, the standard offer service |
28 | kilowatt-hour charge shall be net of the renewable energy standard charge or credit; |
29 | (ii) Distribution kilowatt-hour charge; |
30 | (iii) Transmission kilowatt-hour charge; and |
31 | (iv) Transition kilowatt-hour charge. |
32 | Notwithstanding the foregoing, except for systems that have requested an interconnection |
33 | study for which payment has been received by the distribution company, or if an interconnection |
34 | study is not required, a completed and paid interconnection application, by December 31, 2018, |
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1 | the renewable net-metering credit for all remote public entity and multi-municipal multi-party |
2 | collaborative net-metering systems shall not include the distribution kilowatt hour charge |
3 | commencing on January 1, 2050. |
4 | (20) "Renewable self-generator" means an electric distribution service customer of record |
5 | for the eligible net-metering system or community remote-net-metering system at the eligible net- |
6 | metering-system site which system is primarily designed to produce electrical energy for |
7 | consumption by that same customer at its distribution service account(s), and/or, with respect to |
8 | community remote-net-metering systems, electrical energy which generates net-metering credits |
9 | to be applied to offset the eligible credit-recipient account usage. |
10 | (21) "Third party" means and includes any person or entity, other than the renewable self- |
11 | generator, who or that owns or operates the eligible net-metering system or community remote- |
12 | net-metering system on the eligible net-metering-system site for the benefit of the renewable self- |
13 | generator. |
14 | (22) "Third-party, net-metering financing arrangement" means the financing of eligible |
15 | net-metering systems or community remote-net-metering systems through lease arrangements or |
16 | power/credit purchase agreements between a third party and renewable self-generator, except for |
17 | those entities under a public entity net-metering finance arrangement. A third party engaged in |
18 | providing financing arrangements related to such net-metering systems with a public or private |
19 | entity is not a public utility as defined in § 39-1-2. |
20 | 39-26.4-3. Net metering. |
21 | (a) The following policies regarding net metering of electricity from eligible net-metering |
22 | systems and community remote-net-metering systems and regarding any person that is a |
23 | renewable self-generator shall apply: |
24 | (1)(i) The maximum, allowable capacity for eligible net-metering systems, based on |
25 | nameplate capacity, shall be ten megawatts (10 MW), effective sixty (60) days after passage. The |
26 | aggregate amount of net metering in the Block Island Power Company and the Pascoag Utility |
27 | District shall not exceed three percent (3%) of peak load for each utility district; and |
28 | (ii) Through December 31, 2018, the maximum, aggregate amount of community remote- |
29 | net-metering systems built shall be thirty megawatts (30 MW). Any of the unused MW amount |
30 | after December 31, 2018, shall remain available to community remote-net-metering systems until |
31 | the MW aggregate amount is interconnected. After December 31, 2018, the commission may |
32 | expand or modify the aggregate amount after a public hearing upon petition by the office of |
33 | energy resources. The commission shall determine within six (6) months of such petition being |
34 | docketed by the commission whether the benefits of the proposed expansion exceed the cost. This |
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1 | aggregate amount shall not apply to any net-metering financing arrangement involving public |
2 | entity facilities, multi-municipal multi-party collaborative facilities, educational institutions, the |
3 | federal government, hospitals, or nonprofits. By June 30, 2018, the commission shall conduct a |
4 | study examining the cost and benefit to all customers of the inclusion of the distribution charge as |
5 | a part of the net-metering calculation. |
6 | (2) For ease of administering net-metered accounts and stabilizing net-metered account |
7 | bills, the electric-distribution company may elect (but is not required) to estimate for any twelve- |
8 | month (12) period: |
9 | (i) The production from the eligible net-metering system or community remote-net- |
10 | metering system; and |
11 | (ii) Aggregate consumption of the net-metered accounts at the eligible net-metering- |
12 | system site or the sum of the consumption of the eligible credit-recipient accounts associated with |
13 | the community remote-net-metering system, and establish a monthly billing plan that reflects the |
14 | expected credits that would be applied to the net-metered accounts over twelve (12) months. The |
15 | billing plan would be designed to even out monthly billings over twelve (12) months, regardless |
16 | of actual production and usage. If such election is made by the electric-distribution company, the |
17 | electric-distribution company would reconcile payments and credits under the billing plan to |
18 | actual production and consumption at the end of the twelve-month (12) period and apply any |
19 | credits or charges to the net-metered accounts for any positive or negative difference, as |
20 | applicable. Should there be a material change in circumstances at the eligible net-metering system |
21 | site or associated accounts during the twelve-month (12) period, the estimates and credits may be |
22 | adjusted by the electric-distribution company during the reconciliation period. The electric- |
23 | distribution company also may elect (but is not required) to issue checks to any net-metering |
24 | customer in lieu of billing credits or carry-forward credits or charges to the next billing period. |
25 | For residential-eligible net-metering systems and community-remote-net-metering systems |
26 | twenty-five kilowatts (25 kw) or smaller, the electric-distribution company, at its option, may |
27 | administer renewable net-metering credits month to month allowing unused credits to carry |
28 | forward into the following billing period. |
29 | (3) If the electricity generated by an eligible net-metering system or community remote- |
30 | net-metering system during a billing period is equal to, or less than, the net-metering customer's |
31 | usage at the eligible net-metering-system site or the sum of the usage of the eligible credit- |
32 | recipient accounts associated with the community remote-net-metering system during the billing |
33 | period, the customer shall receive renewable net-metering credits, that shall be applied to offset |
34 | the net-metering customer's usage on accounts at the eligible net-metering-system site, or shall be |
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1 | used to credit the eligible credit-recipient's electric account. |
2 | (4) If the electricity generated by an eligible net-metering system or community remote- |
3 | net-metering system during a billing period is greater than the net-metering customer's usage on |
4 | accounts at the eligible net-metering-system site or the sum of the usage of the eligible credit- |
5 | recipient accounts associated with the community remote-net-metering system during the billing |
6 | period, the customer shall be paid by excess renewable net-metering credits for the excess |
7 | electricity generated up to an additional twenty-five percent (25%) beyond the net-metering |
8 | customer's usage at the eligible net-metering-system site, or the sum of the usage of the eligible |
9 | credit-recipient accounts associated with the community remote net-metering system during the |
10 | billing period; unless the electric-distribution company and net-metering customer have agreed to |
11 | a billing plan pursuant to subdivision (2). |
12 | (5) The rates applicable to any net-metered account shall be the same as those that apply |
13 | to the rate classification that would be applicable to such account in the absence of net-metering, |
14 | including customer and demand charges, and no other charges may be imposed to offset net- |
15 | metering credits. |
16 | (b) The commission shall exempt electric-distribution company customer accounts |
17 | associated with an eligible, net-metering system from back-up or standby rates commensurate |
18 | with the size of the eligible net-metering system, provided that any revenue shortfall caused by |
19 | any such exemption shall be fully recovered by the electric-distribution company through rates. |
20 | (c) Any prudent and reasonable costs incurred by the electric-distribution company |
21 | pursuant to achieving compliance with subsection (a) and the annual amount of any renewable |
22 | net-metering credits or excess, renewable net-metering credits provided to accounts associated |
23 | with eligible net-metering systems or community remote-net-metering systems, shall be |
24 | aggregated by the distribution company and billed to all distribution customers on an annual basis |
25 | through a uniform, per-kilowatt-hour (kwh) surcharge embedded in the distribution component of |
26 | the rates reflected on customer bills. |
27 | (d) The billing process set out in this section shall be applicable to electric-distribution |
28 | companies thirty (30) days after the enactment of this chapter. |
29 | SECTION 2. This act shall take effect upon passage. |
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LC004376 | |
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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 would replace the term multi-municipal collaborative with multi-party |
2 | collaborative and define it as any combination of two (2) or more eligible parties that enter into |
3 | an agreement for the purpose of co-owning one or more eligible net-metering resources or |
4 | entering into financing arrangement(s) for the financing and operation of one or more eligible net- |
5 | metering resources pursuant to § 39-26.4-2(14). For purposes of this subsection, “eligible parties” |
6 | means public entities, educational institutions, hospitals and nonprofits. |
7 | This act would take effect upon passage. |
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LC004376 | |
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