Bill Text

This sample bill is a compilation of several different state bills relating specifically to net metering. Much of the actual language has been extracted from Utah, Vermont, California, New Jersey, Connecticut, and Minnesota net metering bills.

State Promotion of Net Metering Act

Section. 1. General Purpose.

This Act requires electric service providers to make a net metering program available to customers by which customers may establish a renewable energy-powered customer generation system to produce electricity for their own use and to supply excess electricity to the electric service provider. The Act requires the electric service provider to offset charges for electricity by the amount of electricity supplied by the customer from the customer generation system and requires the electric service provider to give the customer credit for electricity generated by the customer that exceeds the amount supplied by the electric service provider. The Act requires the customer to meet certain safety requirements with respect to the customer generating system. The Act prohibits the electric service provider from imposing additional charges or fees to customers participating in a net metering program unless specifically authorized herein.

Section 2. Legislative Findings.

The Legislature finds that allowing net energy metering for eligible customer-generators is in the public interest in order to:

(A) Encourage substantial private investment in renewable energy resources;

(B) Stimulate in-state economic growth;

(C) Reduce demand for electricity during peak consumption periods;

(D) Enhance the continued diversification of the energy resources used in this state;

(E) Help stabilize this state’s energy supply infrastructure; and

(F) Reduce interconnection and administrative costs for electricity suppliers.

Section 3. Definitions.

As used in this Act:

(A) “Average retail utility energy rate” is defined as the average of the retail energy rates, exclusive of special rates based on income, age, or energy conservation, according to the applicable rate schedule of the utility for sales to that class of customer.

(B) “Biomass” means:

(1) Organic material from a plant or tree that is planted for the purpose of being used to produce energy, but not including vegetation produced on Conservation Reserve Program lands if such harvest would be inconsistent with the environmental purposes of the conservation program; or

(2) Nonhazardous lignocellulosic or hemicellulosic matter, or agricultural animal waste material that is segregated from other waste materials and that is derived from:

(a) Only the following forest-related resources, provided these resources do not come from national or state forests or publicly-owned roadless areas:

(i) Slash; and

(ii) Brush;

(b) An agricultural crop, crop by-product, or residue resource, but not including vegetation produced on Conservation Reserve Program lands if such harvest would be inconsistent with the environmental purposes of the conservation program;

(c) Miscellaneous waste such as landscape or right-of-way tree trimmings, but not including:

(i) Incineration of municipal solid waste;

(ii) Recyclable postconsumer waste paper;

(iii) Painted, treated, or pressurized wood;

(iv) Wood, contaminated with plastic or metals; or

(v) Tires; and

(d) Animal waste, provided that the waste comes from animal feeding operations with no more than 1,000 animal units.

(C) “Electric service provider” is a public or private utility company that provides electricity to residential, commercial, agricultural, and industrial customers.

(D) “Eligible customer-generator” means a residential, commercial, agricultural, or industrial customer of an electric service provider, who uses only renewable energy sources.

(E) “Farm system” means a facility of no more than 100 kilowatts (AC) capacity that generates electric energy from the anaerobic digestion of agricultural waste produced by farming, and which is located on the farm where substantially all of the waste used is produced.

(F) “Net energy metering” means measuring the difference between the electricity supplied to a customer through the electricity grid and the electricity generated by an eligible customer-generator and fed back to the electric grid over a 12-month period. Net energy metering shall be accomplished using a single meter or a set of meters capable of registering the flow of electricity both into and out of the electricity grid.

(G) “Net metering system” means a facility for generation of electricity that:

(1) Is of no more than 20 kilowatts capacity for residential systems and no more than 100 kilowatts capacity for commercial, agricultural (including farm systems), and industrial systems;

(2) Operates in parallel with facilities of the electric distribution system;

(3) Is intended primarily to offset part or all of the customer’s own electricity requirements;

(4) Is located on the premises owned or operated by the customer; and

(5) Employs a renewable energy source as defined in subsection (H) of this section or is a farm system as defined in subsection (E) of this section.

(H) “Renewable energy source” is defined to mean energy derived from solar power, wind power, a fuel cell, or biomass.

Section 4. Metering.

Consistent with the other provisions of this Act, electric energy measurement for net metering systems shall be calculated in the following manner:

(A) The electric distribution company which serves the customer shall measure the net electricity produced or consumed during the customer’s billing period, in accordance with normal metering practices;

(B) If the electricity supplied by the electric company exceeds the electricity generated by the customer and fed back to the electric distribution system during the billing period then the customer shall be billed for the net electricity supplied by the electric company, in accordance with normal metering practices;

(C) If electricity generated by the customer exceeds the electricity supplied by the electric company:

(1) The customer shall be credited for the excess kilowatt-hours generated during the billing period, with this kilowatt-hour credit appearing on the bill for the following billing period;

(2) At the beginning of each calendar year, any remaining unused kilowatt-hour credit accumulated during the previous year shall revert to the customer-generator in the form of monetary compensation at the average wholesale rate of electricity for the customer’s rate class; and

(3) When a customer leaves the system, that customer’s unused credits for excess kilowatt-hours generated shall be paid to the customer at the rate required above.

Section 5. Implementation.

Every electric service provider:

(A) Shall develop a standard contract or tariff providing for net energy metering, and shall make this contract available to eligible customer-generators, upon request;

(B) Shall, at its own expense, make available to each of its eligible customer-generators who have installed a net metering system the meter (or set of meters) that is needed to determine the net flow of electricity both into and out of the electricity grid;

(C) May, at its own expense, and with the written consent of the customer, install one or more additional meters to monitor the flow of electricity in each direction. The additional metering shall be used only to provide the information necessary to accurately bill or credit the customer-generator or to collect renewable energy generating system performance information for research purposes; and

(D) Shall charge the customer a minimum monthly fee that is the same as other customers of the electric distribution company in the same rate class, but shall not charge the customer any additional standby, capacity, interconnection, or other fee or charge.

Section 6. Total Capacity.

There is to be no statewide cap on the number of systems eligible or on the total capacity for net metering.

Section 7. Safety.

Safety regulations are as follows:

(A) A net metering system using photovoltaic generation shall conform to applicable electrical safety, power quality, and interconnection requirements established by the National Electrical Code, the Institute of Electrical and Electronic Engineers, and Underwriters Laboratories. The customer shall be responsible for installation, testing, accuracy, and maintenance of net metering equipment;

(B) By <insert date>, the <insert applicable state agency / department> shall adopt, by rule or order, electrical safety, power quality, and interconnection requirements for net metering equipment which uses generation technologies other than photovoltaic technology; and

(C) An electric company may, at its own expense, and upon reasonable written notice to the customer, perform such testing and inspection of a net metering system in order to confirm that the system conforms to applicable electrical safety, power quality, and interconnection requirements.

Section 8. Preemptions.

This Act supercedes all local ordinances relating to net metering.

Section 9. Rulemaking and Enforcement Policy.

The <insert applicable state agency / commission> is hereby granted the authority to establish all necessary rules and regulations to ensure the proper implementation and enforcement of the provisions of this Act. Such rules and regulations shall be promulgated no later than 180 days after the date of enactment.

Section 10. Effective Date.

This Act shall take effect 180 days after the date of enactment.