[Rev. 10/14/2014 1:36:12 PM]

[NAC-701B Revised Date: 9-14]

CHAPTER 701B - RENEWABLE ENERGY PROGRAMS

GENERAL PROVISIONS

701B.010         Deviations from provisions of chapter.

701B.020         Adoption by reference of part of Uniform System of Accounts of Federal Energy Regulatory Commission.

SOLAR ENERGY SYSTEMS INCENTIVE PROGRAM

General Provisions

701B.050         Definitions.

701B.055         “Applicant” defined.

701B.065         “Commission” defined.

701B.067         “Corporation for public benefit” defined.

701B.070         “Host customer” defined.

701B.073         “Low-income and nonprofit” defined.

701B.075         “Participant” defined.

701B.087         “Public entity” defined.

701B.100         “Solar energy system” defined.

701B.105         “Solar Program” defined.

701B.110         “Solar Program rate” defined.

701B.115         “System owner” defined.

701B.117         “Title I school” defined.

701B.120         “Utility” defined.

Administration of Program

701B.125         Annual plan of utility: Filing and contents.

701B.130         Annual plan of utility: Approval by Commission.

701B.135         Accounting for costs and revenues of utility; recovery of utility’s labor costs and overhead costs.

701B.140         Filing, calculation and adjustment of Solar Program rate; recovery of Solar Program costs.

701B.145         Periodic meeting of utility with industry stakeholders; informational filings by utility.

701B.150         Application for incentives; categories of host customers; determination of amount of incentive; payment of incentives; proposal of incentive levels; assignment of portfolio energy credits.

701B.152         Utility to publish quarterly report of average installed cost for certain systems; report to serve as basis for calculating cap on individual incentive amounts.

701B.154         Provision to Commission of applications.

701B.155         Application for reservation; cancellation and resubmission of application; duties of utility and applicant; limits on reservation of capacity; submission and contents of claim; effect of failure to install system.

701B.157         Commission docket to include applications as public records.

701B.165         Prerequisites to payment of incentive; action on claim; rejection of project; reapplication for reservation of incentive.

701B.170         Withdrawal of host customer or system owner; rescission of host customer with system owner.

701B.175         Rights of host customer; required party to agreement or contract with utility.

701B.180         Solar energy systems: Requirements for eligibility.

701B.185         Verification of licensing of contractors involved in installation of solar energy system; suspension of contractor’s license during application process.

SOLAR THERMAL SYSTEMS DEMONSTRATION PROGRAM

General Provisions

701B.200         Definitions.

701B.205         “Applicant” defined.

701B.210         “Customer” defined.

701B.215         “Eligible contractor” defined.

701B.220         “Program” and “Solar Thermal Program” defined.

701B.225         “Solar Thermal Program rate” defined.

Administration of Program

701B.230         Establishment of Program; categories of participants.

701B.235         Annual plan of utility: Filing and contents; approval by Commission.

701B.240         Separate accounting for certain costs of utility; selection of accounting method; recoverable costs.

701B.245         Method of accounting for costs and revenues of utility; filing, calculation and adjustment of Solar Thermal Program rate; recovery of Program costs.

701B.250         Alternative method of accounting for costs and revenues of utility.

701B.255         Allocation of number of solar thermal systems to be installed; rebate payment levels.

701B.260         Incentives for private residential property and small business property: Eligibility for rebate; application for reservation; cancellation and resubmission of application; duties of utility and applicant; claim for rebate.

701B.265         Incentives for school property and public and other property: Eligibility for rebate; application for reservation; duties of utility and applicant; cancellation of application; claim for rebate.

701B.270         Eligibility of applicant who withdraws from Program or does not complete installation of solar thermal system.

701B.275         Notification of customer of record regarding correspondence between utility and applicant.

701B.280         Solar thermal systems: Qualifications for Program.

701B.285         Eligible contractors: Requirements for qualification; duties of utility; suspension of license during application process.

701B.290         Eligible contractors: Installation of solar thermal system that uses solar energy to heat water.

RENEWABLE ENERGY SCHOOL PILOT PROGRAM

General Provisions

701B.300         Definitions.

701B.305         “Generating capacity” defined.

701B.310         “Nameplate capacity” defined.

701B.315         “Renewable Energy School Pilot Program” and “Program” defined.

701B.320         “Renewable energy system” defined.

701B.325         “Renewable energy system generator” defined.

701B.330         “School district” defined.

701B.335         “School property” defined.

701B.340         “Utility” defined.

Administration of Program

701B.345         Written description of Program: Provision to school districts; contents.

701B.350         Application to participate in Program.

701B.355         Location of renewable energy systems.

701B.360         Limitation on generating capacity of renewable energy systems; participation in net metering.

701B.365         Transactions allowed under Program; filing of tariffs for approval by Commission.

WIND ENERGY SYSTEMS DEMONSTRATION PROGRAM

General Provisions

701B.400         Definitions.

701B.410         “Applicant” defined.

701B.415         “Category” defined.

701B.420         “Commission” defined.

701B.423         “Corporation for public benefit” defined.

701B.425         “Host customer” defined.

701B.430         “Participant” defined.

701B.455         “System owner” defined.

701B.460         “Utility” defined.

701B.465         “Wind Demonstration Program” and “Program” defined.

701B.470         “Wind Demonstration Program rate” defined.

701B.475         “Wind energy system” defined.

Administration of Program

701B.480         Annual plan of utility: Filing and contents.

701B.485         Annual plan of utility: Approval by Commission.

701B.490         Accounting for costs and revenues of utility; recovery of utility’s labor costs and overhead costs.

701B.495         Filing, calculation and adjustment of Wind Demonstration Program rate; recovery of Program costs.

701B.500         Receipt of incentives established when application approved.

701B.505         Application for incentives; categories of host customers; establishment by Commission of rate of incentive payment; payment of incentives; proposal of incentive levels; assignment of portfolio energy credits.

701B.507         Provision of application to Commission.

701B.510         Application for reservation; cancellation and resubmission of application; duties of utility and applicant; submission and contents of claim.

701B.513         Docket to include applications in public records of Commission.

701B.520         Prerequisites to payment of incentive; action on claim; rejection of project; reapplication for reservation of incentive.

701B.525         Withdrawal of host customer or system owner.

701B.530         Eligibility of participant who withdraws or forfeits incentive for wind energy system.

701B.535         Rights of host customer; required party to agreement or contract with utility.

701B.540         Location of wind energy system.

701B.545         Verification of licensing of contractors involved in installation of wind energy system; suspension of contractor’s license during application process.

WATERPOWER ENERGY SYSTEMS DEMONSTRATION PROGRAM

General Provisions

701B.600         Definitions.

701B.605         “Applicant” defined.

701B.610         “Commission” defined.

701B.613         “Corporation for public benefit” defined.

701B.615         “Host customer” defined.

701B.620         “Participant” defined.

701B.630         “System owner” defined.

701B.635         “Utility” defined.

701B.640         “Waterpower” defined.

701B.645         “Waterpower Demonstration Program” and “Program” defined.

701B.650         “Waterpower Demonstration Program rate” defined.

701B.655         “Waterpower energy system” defined.

Administration of Program

701B.660         Annual plan of utility: Filing and contents.

701B.665         Annual plan of utility: Approval by Commission.

701B.670         Accounting for costs and revenues of utility; recovery of utility’s labor costs and overhead costs.

701B.675         Filing, calculation and adjustment of Waterpower Demonstration Program rate; recovery of Program costs.

701B.680         Receipt of incentives established when application approved.

701B.685         Application for incentives; categories of host customers; establishment by Commission of rate of incentive payment; payment of incentives; proposal of incentive levels; assignment of portfolio energy credits.

701B.687         Provision of application to Commission.

701B.690         Participation in Program: Application for reservation of incentive; cancellation and resubmission of application; duties of utility and applicant; claim for incentive.

701B.693         Docket to include applications in public records of Commission.

701B.695         Prerequisites to payment of incentive; action on claim; rejection of project; reapplication for reservation of incentive.

701B.700         Withdrawal of host customer or system owner; preservation of reservation after withdrawal; application for new reservation.

701B.705         Eligibility of participant who withdraws or does not complete installation of waterpower energy system.

701B.710         Rights of host customer; required party to agreement or contract with utility.

701B.715         Location of waterpower energy system.

701B.720         Verification of licensing of contractors involved in installation of waterpower energy system; suspension of contractor’s license during application process.

GENERAL PROVISIONS

      NAC 701B.010  Deviations from provisions of chapter. (NRS 703.025)

     1.  The Commission or the presiding officer may allow deviation from the provisions of this chapter if:

     (a) Good cause for the deviation appears;

     (b) The person requesting the deviation provides a specific reference to each provision of this chapter from which deviation is requested; and

     (c) The Commission finds that the deviation is in the public interest and is not contrary to statute.

     2.  As used in this section, “presiding officer” has the meaning ascribed to it in NAC 703.090.

     (Added to NAC by Pub. Utilities Comm’n by R175-07, eff. 4-17-2008)

      NAC 701B.020  Adoption by reference of part of Uniform System of Accounts of Federal Energy Regulatory Commission. (NRS 703.025)  The Public Utilities Commission of Nevada hereby adopts by reference from the Uniform System of Accounts of the Federal Energy Regulatory Commission the account identified as Other Regulatory Assets, FERC Account No. 182.3. This account is contained in 18 C.F.R. Parts 101 and 201, and the volume of the Code of Federal Regulations containing these parts may be purchased by mail from the Superintendent of Documents, United States Government Printing Office, P.O. Box 979050, St. Louis, Missouri 63197-9000, by toll-free telephone at (866) 512-1800 or on the Internet at http://bookstore.gpo.gov, for the price of $68. The volume may be accessed free of charge on the Internet at http://www.gpoaccess.gov/cfr/index.html.

     (Added to NAC by Pub. Utilities Comm’n by R173-07, R174-07 & R175-07, eff. 4-17-2008; A by R051-09, 1-28-2010)

SOLAR ENERGY SYSTEMS INCENTIVE PROGRAM

General Provisions

      NAC 701B.050  Definitions. (NRS 701B.005, 701B.200, 703.025)  As used in NAC 701B.050 to 701B.185, inclusive, unless the context otherwise requires, the words and terms defined in NAC 701B.055 to 701B.120, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R175-07, eff. 4-17-2008; A by R184-09, 4-20-2010; R122-13, 2-26-2014)

      NAC 701B.055  “Applicant” defined. (NRS 701B.200, 703.025)  “Applicant” has the meaning ascribed to it in NRS 701B.030.

     (Added to NAC by Pub. Utilities Comm’n by R175-07, eff. 4-17-2008)

      NAC 701B.065  “Commission” defined. (NRS 701B.200, 703.025)  “Commission” has the meaning ascribed to it in NRS 701B.050.

     (Added to NAC by Pub. Utilities Comm’n by R175-07, eff. 4-17-2008)

      NAC 701B.067  “Corporation for public benefit” defined. (NRS 701B.005, 701B.200, 703.025)  “Corporation for public benefit” means a corporation that is organized for a public or charitable purpose and which upon dissolution must distribute its assets to the United States, a state, or a person which is recognized as exempt pursuant to 26 U.S.C. § 501(c)(3).

     (Added to NAC by Pub. Utilities Comm’n by R122-13, eff. 2-26-2014)

      NAC 701B.070  “Host customer” defined. (NRS 701B.200, 703.025)  “Host customer” means either the utility customer of record at the location where a solar energy system will be located or a person who has been designated by the utility customer of record in a letter to the utility explaining the relationship between that person and the utility customer of record.

     (Added to NAC by Pub. Utilities Comm’n by R184-09, eff. 4-20-2010)

      NAC 701B.073  “Low-income and nonprofit” defined. (NRS 701B.005, 701B.200, 703.025)  “Low-income and nonprofit” means a category of host customer that is:

     1.  An entity that owns publicly subsidized housing;

     2.  A nonprofit corporation or other organization that qualifies as a tax-exempt organization pursuant to 26 U.S.C. § 501(c)(3);

     3.  An entity eligible for low-income housing credits pursuant to 26 U.S.C. § 42;

     4.  A person whose income does not exceed 80 percent of the median family income for the county in which the person resides, subject to an adjustment for any area with unusually high or low median incomes or housing costs; or

     5.  A Title I school.

     (Added to NAC by Pub. Utilities Comm’n by R122-13, eff. 2-26-2014)

      NAC 701B.075  “Participant” defined. (NRS 701B.200, 703.025)  “Participant” has the meaning ascribed to it in NRS 701B.080.

     (Added to NAC by Pub. Utilities Comm’n by R175-07, eff. 4-17-2008)

      NAC 701B.087  “Public entity” defined. (NRS 701B.005, 701B.200, 703.025)  “Public entity” means a category of host customer that is:

     1.  A department or agency of a state or local government;

     2.  A public school district;

     3.  An institute of higher education that is part of the Nevada System of Higher Education;

     4.  An Indian tribe or tribal organization; or

     5.  A corporation for public benefit.

     (Added to NAC by Pub. Utilities Comm’n by R122-13, eff. 2-26-2014)

      NAC 701B.100  “Solar energy system” defined. (NRS 701B.200, 703.025)  “Solar energy system” has the meaning ascribed to it in NRS 701B.150.

     (Added to NAC by Pub. Utilities Comm’n by R175-07, eff. 4-17-2008)

      NAC 701B.105  “Solar Program” defined. (NRS 701B.200, 703.025)  “Solar Program” has the meaning ascribed to it in NRS 701B.160.

     (Added to NAC by Pub. Utilities Comm’n by R175-07, eff. 4-17-2008)

      NAC 701B.110  “Solar Program rate” defined. (NRS 701B.200, 703.025)  “Solar Program rate” means the rate established pursuant to NAC 701B.140.

     (Added to NAC by Pub. Utilities Comm’n by R175-07, eff. 4-17-2008)

      NAC 701B.115  “System owner” defined. (NRS 701B.200, 703.025)  “System owner” means the owner of the generating equipment at the time an incentive is paid. If a solar energy system is owned by a third party, the third party is the system owner.

     (Added to NAC by Pub. Utilities Comm’n by R184-09, eff. 4-20-2010)

      NAC 701B.117  “Title I school” defined. (NRS 701B.005, 701B.200, 703.025)  “Title I school” has the meaning ascribed to it in NRS 385.3467.

     (Added to NAC by Pub. Utilities Comm’n by R122-13, eff. 2-26-2014)

      NAC 701B.120  “Utility” defined. (NRS 701B.200, 703.025)  “Utility” has the meaning ascribed to it in NRS 701B.180.

     (Added to NAC by Pub. Utilities Comm’n by R175-07, eff. 4-17-2008)

Administration of Program

      NAC 701B.125  Annual plan of utility: Filing and contents. (NRS 701B.005, 701B.200, 701B.220, 703.025, 704.786)

     1.  Pursuant to NRS 701B.230, a utility shall file with the Commission on or before February 1 of each year an annual plan which must include the following:

     (a) A schedule describing major program milestones;

     (b) A budget with the following categories:

          (1) Contractor costs;

          (2) Marketing costs;

          (3) Training costs; and

          (4) Utility administrative costs;

     (c) A report on the activity of the Solar Program during the immediately preceding calendar year and the current calendar year which includes, without limitation, the most up-to-date versions of the following information for each calendar year:

          (1) The number of applications filed in each Solar Program category;

          (2) The number of participants enrolled in the Solar Program and the number who have dropped out of the Solar Program;

          (3) The annual budget and expenditures;

          (4) Any remaining financial obligations at the end of a calendar year;

          (5) A list of completed installations;

          (6) A summary of marketing efforts; and

          (7) A description of training and educational activities;

     (d) A description of the application process, including, without limitation:

          (1) The procedures to be followed by the utility and the applicant, including, without limitation, the procedure by which a participant may claim an incentive upon the completion of a project;

          (2) The criteria for the selection of applicants for the Solar Program; and

          (3) Copies of proposed applications and forms, including, without limitation, a copy of the form by which a participant may claim an incentive upon the completion of a project;

     (e) The average installed cost in Nevada of a solar energy system during the immediately preceding calendar year;

     (f) The total of all incentives paid for the immediately preceding calendar year;

     (g) The total of all incentives projected to be paid for the current calendar year, with subtotals for incentives paid for installed capacity, incentives projected to be paid for active reservations and incentives forecasted to be paid;

     (h) A graph and table showing the cumulative committed capacity and incurred incentive liability, separated into installed capacity and active reservations, at the end of each year since the inception of the Solar Program;

     (i) A detailed advertising plan;

     (j) An education and training plan;

     (k) An inspection and verification plan for solar energy systems which verifies all applicable requirements for applicants or participants, including, without limitation, any applicable requirements described in NAC 701B.180; and

     (l) A table demonstrating the effects of the Solar Program on the rates paid by customers.

     2.  The annual plan filed by the utility on or before February 1, 2014, must contain, in addition to items listed in subsection 1, the utility’s plan for implementing the Lower Income Solar Energy Pilot Program established pursuant to NRS 704.786. In each subsequent annual plan filed pursuant to this section, the utility shall report on the activities undertaken by the utility and the achievements of the Lower Income Solar Energy Pilot Program during the immediately preceding calendar year, and shall additionally provide the information listed in subsection 1 that is relevant to the Lower Income Solar Energy Pilot Program.

     (Added to NAC by Pub. Utilities Comm’n by R175-07, eff. 4-17-2008; A by R184-09, 4-20-2010; R122-13, 2-26-2014)

      NAC 701B.130  Annual plan of utility: Approval by Commission. (NRS 701B.005, 701B.200, 703.025)  Not later than 150 days after the annual plan is filed pursuant to NAC 701B.125, the Commission will issue an order approving the annual plan with such modifications and upon such terms and conditions as the Commission finds necessary or appropriate to facilitate the Solar Program.

     (Added to NAC by Pub. Utilities Comm’n by R175-07, eff. 4-17-2008; A by R122-13, 2-26-2014)

      NAC 701B.135  Accounting for costs and revenues of utility; recovery of utility’s labor costs and overhead costs. (NRS 701B.200, 703.025)

     1.  All reasonable and prudent costs associated with carrying out and administering the Solar Program must be accounted for in the books and records of a utility separately from amounts attributable to any other activity. The utility must account for the costs and revenues in the following manner:

     (a) Calculate, on a monthly basis, the costs incurred and revenues received in the Solar Program since the end of the test period in its last proceeding to change the Solar Program rate;

     (b) Record the cost of the Solar Program in a separate subaccount of FERC Account No. 182.3 and record an offset in the appropriate subaccount of other FERC accounts;

     (c) Maintain subsidiary records of the subaccount of FERC Account No. 182.3 which must clearly delineate, without limitation, the incentives, contractor costs, marketing costs, training costs and utility administrative costs associated with the Solar Program;

     (d) Record in the subaccount of FERC Account No. 182.3 the revenues attributable to the rate established pursuant to NAC 701B.140 to recover the Solar Program cost; and

     (e) Apply a carrying charge at the rate of 1/12 of the authorized rate of return to the monthly ending balance in the subaccount of FERC Account No. 182.3.

     2.  The utility’s labor costs and overhead costs related to the Solar Program must be recovered in a general rate case filing.

     (Added to NAC by Pub. Utilities Comm’n by R175-07, eff. 4-17-2008; A by R051-09, 1-28-2010)

      NAC 701B.140  Filing, calculation and adjustment of Solar Program rate; recovery of Solar Program costs. (NRS 701B.005, 701B.200, 701B.210, 703.025)

     1.  A utility shall include with its annual deferred energy accounting adjustment application filed pursuant to subsection 11 of NRS 704.110 a revised Solar Program rate. The rate must be calculated by adding the following two components:

     (a) A prospective rate determined by dividing not more than the total costs in the Solar Program annual plan by the projected kilowatt-hours for the calendar year; and

     (b) A clearing rate determined by dividing the cumulative balance in the Solar Program subaccount of FERC Account No. 182.3 at the end of the deferred energy test period as defined in NAC 704.063 by the test period kilowatt-hour sales.

     2.  The Commission will allow recovery of all prudent Solar Program costs included in the subaccount of FERC Account No. 182.3 at the end of the test period as defined in NAC 704.063 and adjust the Solar Program rate accordingly.

     (Added to NAC by Pub. Utilities Comm’n by R175-07, eff. 4-17-2008; A by R076-11, 5-30-2012; R122-13, 2-26-2014)

      NAC 701B.145  Periodic meeting of utility with industry stakeholders; informational filings by utility. (NRS 701B.200, 703.025)

     1.  The utility shall meet with industry stakeholders, including the Regulatory Operations Staff of the Commission, twice a year to evaluate the effectiveness of the Solar Program and its progress toward meeting its goals.

     2.  Within 30 days after each such meeting, the utility shall file an informational filing with the Commission, including, without limitation:

     (a) A status update regarding the Solar Program, including the current number of applicants, completed installations and progress toward meeting the current incentive step level goal; and

     (b) A summary of the discussion from the meeting, including concerns and recommendations of the stakeholders.

     (Added to NAC by Pub. Utilities Comm’n by R184-09, eff. 4-20-2010)

      NAC 701B.150  Application for incentives; categories of host customers; determination of amount of incentive; payment of incentives; proposal of incentive levels; assignment of portfolio energy credits. (NRS 701B.005, 701B.200, 701B.220, 703.025, 704.786)

     1.  The utility shall offer to a host customer an incentive pursuant to subsections 3 and 4. Any customer of a utility that receives retail electric service from the utility may apply for an incentive. A host customer or, pursuant to subsection 1 of NAC 701B.175, a system owner may apply for the incentive. The project site must be located in the service territory of the utility.

     2.  A host customer must, based upon the nature of the host customer, be designated as one of the following categories:

     (a) Public entity;

     (b) Low-income and nonprofit;

     (c) Residential and small commercial; or

     (d) Large commercial and industrial.

Ę A host customer designated as low-income and nonprofit is not eligible to participate in the Lower Income Solar Energy Pilot Program established pursuant to NRS 704.786 with the same solar energy system that is the subject of a reservation of capacity issued pursuant to NAC 701B.155.

     3.  A host customer that applies for a reservation of capacity for a solar energy system with a capacity of not more than 25 kilowatts whose application is approved is eligible to receive a one-time incentive payment. The amount of the incentive paid to a host customer for each category pursuant to this subsection must be determined during the proceeding to review the annual plan of the utility filed pursuant to NAC 701B.125.

     4.  A host customer that applies for a reservation of capacity for a solar energy system with a capacity of more than 25 kilowatts but less than 500 kilowatts whose application is approved may enter into a contract with the utility to receive an incentive paid over a period of 5 years. The amount of the incentive must be based upon the metered production of the solar energy system. The incentive rate paid to a host customer must be determined during the proceeding to review the annual plan of the utility filed pursuant to NAC 701B.125.

     5.  A contract to receive an incentive paid over a period of 5 years executed pursuant to subsection 4 must not be executed on or after January 1, 2021. The contract must not provide for the payment of the incentive, or any portion thereof, after December 31, 2025. The incentive must be paid on a quarterly basis and must be paid directly to the host customer or third-party assignee of the host customer. The utility shall include in its first annual plan filed after February 26, 2014, a detailed procedure and schedule for the payment of incentives.

     6.  The utility shall not issue a reservation notice to a host customer if the incentive that would be paid under the notice would cause the incentive expenditure cap established pursuant to paragraph (a) of subsection 2 of NRS 701B.005 to be exceeded.

     7.  A solar energy system with a capacity of more than 500 kilowatts is not eligible to receive an incentive.

     8.  A utility shall, in the annual plan of the utility filed pursuant to NAC 701B.125, propose incentive levels for each category. The Commission may approve the proposed incentive levels, in whole or in part, or prescribe incentive levels other than those proposed by the utility. In approving an incentive level, the Commission will ensure that the incentive level is consistent with NRS 701B.190, subsection 1 of NRS 701B.200 and NRS 701B.220.

     9.  In determining eligibility to participate in the Solar Program, each solar energy system located on the premises must be treated as a single solar energy system.

     10.  Portfolio energy credits generated by a host customer participating in the Solar Program must be assigned to the utility pursuant to NRS 701B.290 and 704.775.

     (Added to NAC by Pub. Utilities Comm’n by R184-09, eff. 4-20-2010; A by R025-12, 9-14-2012; R122-13, 2-26-2014)

      NAC 701B.152  Utility to publish quarterly report of average installed cost for certain systems; report to serve as basis for calculating cap on individual incentive amounts. (NRS 701B.005, 701B.200, 701B.210, 701B.220, 703.025)  A utility shall publish on a quarterly basis and make available to prospective applicants a report of the average installed cost of a solar energy system installed in each quarter of the immediately preceding 12-month period. The utility shall provide such costs for systems with a capacity of not more than 25 kilowatts and for systems with a capacity of more than 25 kilowatts but less than 500 kilowatts. The average cost during each quarter will serve as the basis for calculating the cap on the individual incentive amounts issued during the next subsequent quarter pursuant to subsections 3 and 4 of NAC 701B.150.

     (Added to NAC by Pub. Utilities Comm’n by R122-13, eff. 2-26-2014)

      NAC 701B.154  Provision to Commission of applications. (NRS 701B.005, 701B.200, 701B.210, 703.025)  A utility shall provide to the Commission each application, including related materials, submitted by a host customer designated pursuant to NAC 701B.150 as a public entity, other than a corporation for public benefit or an Indian tribe or tribal organization. The application must be submitted to the Commission not later than 30 days after the application is approved and the issuance of a reservation notice. Confidential information, including, without limitation, personal identifying information, must be provided to the Commission pursuant to NAC 703.527 to 703.5282, inclusive.

     (Added to NAC by Pub. Utilities Comm’n by R122-13, eff. 2-26-2014)

      NAC 701B.155  Application for reservation; cancellation and resubmission of application; duties of utility and applicant; limits on reservation of capacity; submission and contents of claim; effect of failure to install system. (NRS 701B.005, 701B.200, 701B.210, 701B.220, 701B.255, 703.025, 704.786)

     1.  A host customer may submit an application for the reservation of an incentive to the utility using forms approved by the Commission once the host customer has executed a contract with a third party for, or has received a purchase order demonstrating proof of purchase of, solar generating equipment. The application for the reservation of an incentive must include, without limitation:

     (a) Signatures of the applicant, the host customer and the system owner, if different from the host customer;

     (b) A copy of the executed agreement to purchase and install the solar energy system;

     (c) If the system owner is not the host customer, a copy of the executed agreement between the host customer and the system owner;

     (d) Any documentation required by the utility which substantiates ownership of the equipment;

     (e) If the host customer is designated pursuant to NAC 701B.150 as a public entity, other than a corporation for public benefit or an Indian tribe or tribal organization, an attestation that the host customer has complied with all applicable provisions of chapters 338 and 701B of NRS;

     (f) An attestation executed by the contractor involved in the installation of the solar energy system stating that the installation will meet siting requirements as determined by the utility; and

     (g) A refundable application fee, payable to the utility, of:

          (1) For a solar energy system with a capacity of not more than 25 kilowatts, $50.

          (2) For a solar energy system with a capacity of more than 25 kilowatts but less than 500 kilowatts, $100.

Ę The fee must be refunded without interest upon the installation of the solar energy system. The fee is forfeited if the solar energy system is not installed by the expiration date contained in the reservation notice. Each fee that is not refunded must be used by the utility to fund the costs of the Lower Income Solar Energy Pilot Program established pursuant to NRS 704.786.

     2.  The utility shall provide on its Internet website, adjacent to the application forms, a best practices guide to selecting a contractor and other consumer resources, including, but not limited to, the current contact information for the State Contractors’ Board.

     3.  If an application is found to be incomplete or requires clarification, the utility shall request additional information. If the applicant has not submitted the requested information within 20 calendar days after receipt of the request, the application will be cancelled and the applicant may resubmit the application to the utility. The utility shall treat all resubmitted applications as new applications and process them in sequence with other new applications. Money for an incentive is not reserved until the utility receives all information and documentation required for the application and the project is approved.

     4.  The utility shall review and approve applications in the order in which the applications are received, subject to the utility’s process for review and approval of applications. The utility shall, within 30 days after receipt of an application, review the application for completeness and determine eligibility. Once the utility approves the application, the utility shall issue a notice confirming that a specific incentive amount is reserved for the project. The solar energy system must be installed and capable of producing electricity on or before the expiration date listed on the notice. The notice must list:

     (a) The incentive type and the amount that has been reserved for the project;

     (b) The approved kilowatt capacity of the project; and

     (c) An expiration date for the reservation, which must be 12 months after the date of the issuance of the notice.

     5.  If a host customer:

     (a) Has consumed energy delivered by the utility during each of the 12 months immediately preceding the filing date of the application, the reservation of capacity for an applicant must not exceed an amount of capacity that would produce an amount of energy greater than 100 percent of the annual requirements for electricity of the customer-generator, as determined by the consecutive 12-month period with the highest energy usage during the 2-year period immediately preceding the filing date of the application.

     (b) Has not consumed energy delivered by the utility during each of the 12 months immediately preceding the filing date of the application, or if the host customer is installing the solar energy system on a new building, the reservation of capacity for an applicant must not exceed:

          (1) For a residential host customer, 2 watts per square foot of the building; or

          (2) For a nonresidential host customer, the maximum amount of capacity allowable for the building as determined by a procedure that the utility includes in its annual plan filed pursuant to NAC 701B.125 and that is approved by the Commission.

     6.  To receive the full incentive for the reservation, the applicant must complete the installation of a solar energy system not later than the expiration date listed on the notice issued pursuant to subsection 4. If the applicant fails to complete installation of the participating solar energy system on or before the expiration date listed on the notice, the reservation is forfeited and the utility must make the capacity for that reservation available to other applicants.

     7.  To claim the incentive, the applicant must submit a form approved by the Commission to the utility after the solar energy system is installed and capable of producing electricity. The form must include, without limitation:

     (a) Signatures of the applicant, the host customer and the system owner, if different from the host customer;

     (b) Any supporting documentation deemed necessary by the Commission; and

     (c) Any documentation required by the utility which substantiates ownership of the equipment.

     8.  If a host customer has received a reservation for an incentive but failed to install a solar energy system within the time prescribed by this section on three or more occasions, the host customer may not file any additional applications.

     (Added to NAC by Pub. Utilities Comm’n by R184-09, eff. 4-20-2010; A by R025-12, 9-14-2012; R122-13, 2-26-2014)

      NAC 701B.157  Commission docket to include applications as public records. (NRS 701B.005, 701B.200, 701B.210, 703.025)  The Commission will, for each calendar year, open a docket in which to file applications received by a utility under the Solar Program for the purpose of including such applications in the public records of the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R122-13, eff. 2-26-2014)

      NAC 701B.165  Prerequisites to payment of incentive; action on claim; rejection of project; reapplication for reservation of incentive. (NRS 701B.005, 701B.200, 701B.210, 701B.220, 703.025)

     1.  Once a project to install a solar energy system with a capacity of not more than 25 kilowatts is completed, the applicant may request payment of the one-time incentive amount, which must be based on the nameplate capacity of the installed solar energy system and which must not exceed the incentive listed on the confirmed reservation.

     2.  After the completion of a project to install a solar energy system with a capacity of more than 25 kilowatts but less than 500 kilowatts, the applicant may request the commencement of the payment of the performance-based incentive described by the confirmed reservation and in the contract with the utility.

     3.  A project is considered completed when it is completely installed, interconnected, permitted and capable of producing electricity in the manner and in the amounts for which it was designed.

     4.  To receive the one-time incentive payment or to initiate the payment of the performance-based incentive:

     (a) All requirements of the Solar Program must be met;

     (b) A complete claim form must be submitted by the expiration date listed for the project on its confirmed reservation, including, without limitation, final itemized invoices of the cost of tangible materials and labor, and any documentation verifying the installed cost of the project pursuant to subsection 4 of NRS 701B.255; and

     (c) The host customer must enter into a net metering agreement with the utility.

     5.  If a claim form is incomplete or is found to require clarification, the utility shall request the information necessary to process that application further. If the applicant has not submitted the requested information within 20 calendar days after receipt of the request, the request for payment may be denied. If a claim form is not received by the expiration date for the project, or if the project is otherwise ineligible, the utility shall send a written notice to the applicant stating the reasons why the project is ineligible and the project is rejected. If a project is rejected, the applicant or host customer may reapply for the reservation of an incentive but will be subject to the eligibility requirements, incentive levels and funding available at the time of reapplication.

     6.  As used in this section, “cost of tangible materials and labor” means the reasonable cost of materials and labor for permitting, panels, inverters, the balance of system components and any other costs that are directly related to and required for the operation of a solar energy system. The term does not include such costs for improvements to a building or site which are necessary to accommodate a solar energy system, as determined during a proceeding to review the annual plan of a utility filed pursuant to NAC 701B.125.

     (Added to NAC by Pub. Utilities Comm’n by R184-09, eff. 4-20-2010; A by R122-13, 2-26-2014)

      NAC 701B.170  Withdrawal of host customer or system owner; rescission of host customer with system owner. (NRS 701B.005, 701B.200, 701B.210, 701B.220, 703.025)

     1.  The host customer or system owner may withdraw from the Solar Program for any reason by providing written notice of withdrawal to the utility.

     2.  If the host customer rescinds its affiliation with the system owner or contractor for any reason, the host customer shall provide written notice of the rescission to the utility.

     (Added to NAC by Pub. Utilities Comm’n by R184-09, eff. 4-20-2010; A by R122-13, 2-26-2014)

      NAC 701B.175  Rights of host customer; required party to agreement or contract with utility. (NRS 701B.005, 701B.200, 701B.210, 701B.220, 703.025)

     1.  The host customer may act as the applicant or system owner, may designate the applicant or system owner to act on his or her behalf and may change or cancel these designations at any time with prior written notice to the utility and, if applicable, to the system owner.

     2.  The host customer is the holder of the reservation of an incentive, must be a party to any agreement or contract with the utility and retains sole rights to the reservation.

     3.  If the host customer is not the system owner, the system owner must be a party to any agreement or contract with the utility.

     (Added to NAC by Pub. Utilities Comm’n by R184-09, eff. 4-20-2010; A by R122-13, 2-26-2014)

      NAC 701B.180  Solar energy systems: Requirements for eligibility. (NRS 701B.005, 701B.200, 701B.210, 701B.220, 701B.240, 703.025)  For all Solar Program categories:

     1.  A solar energy system must be located on the premises within the Nevada service territory of a participating utility.

     2.  A solar energy system with a capacity of not more than 25 kilowatts must have:

     (a) A 2-year workmanship warranty for the installation of the solar energy system, including labor and materials;

     (b) A 7-year product warranty for the inverters, limited to material; and

     (c) A 20-year product or production warranty for the solar panels, limited to material.

     3.  A solar energy system must be installed:

     (a) By an installer who has been issued a classification C-2 license with the appropriate subclassification by the State Contractors’ Board pursuant to the regulations adopted by the Board; and

     (b) In conformance with the manufacturers’ specifications and with all applicable electrical and building codes and standards.

     (Added to NAC by Pub. Utilities Comm’n by R175-07, eff. 4-17-2008; A by R184-09, 4-20-2010; R122-13, 2-26-2014)

      NAC 701B.185  Verification of licensing of contractors involved in installation of solar energy system; suspension of contractor’s license during application process. (NRS 701B.005, 701B.200, 701B.210, 701B.220, 701B.240, 703.025)  In reviewing an application, a utility shall verify that any contractor involved in the installation of a solar energy system has an active license with the State Contractors’ Board. If the utility determines that a contractor’s license was suspended during the application process:

     1.  Reservations associated with the contractor will not be confirmed;

     2.  Applications associated with the contractor will be suspended;

     3.  No incentive payments will be made for solar energy systems associated with the contractor, except for solar energy systems which were interconnected before the suspension of the contractor’s license or unless the suspension is lifted not later than 30 days after the suspension;

     4.  The utility shall notify each party identified on the application of the suspension; and

     5.  If the solar energy system has not been installed, the host customer may hire a new contractor without losing the current reservation of an incentive.

     (Added to NAC by Pub. Utilities Comm’n by R184-09, eff. 4-20-2010; A by R122-13, 2-26-2014)

SOLAR THERMAL SYSTEMS DEMONSTRATION PROGRAM

General Provisions

      NAC 701B.200  Definitions. (NRS 701B.336, 701B.342, 703.025)  As used in NAC 701B.200 to 701B.290, inclusive, unless the context otherwise requires, the words and terms defined in NAC 701B.205 to 701B.225, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R210-09, eff. 4-20-2010)

      NAC 701B.205  “Applicant” defined. (NRS 701B.336, 701B.342, 703.025)  “Applicant” means:

     1.  A customer who applies to participate in the Solar Thermal Program;

     2.  An eligible contractor who applies on behalf of a customer to participate in the Solar Thermal Program; or

     3.  Any other person who applies on behalf of a customer to participate in the Solar Thermal Program if:

     (a) The person is designated and authorized by the customer to apply on behalf of the customer to participate in the Solar Thermal Program; and

     (b) The designation and authorization are set forth in a letter from the customer to the utility which sets forth the relationship between the customer and the person.

     (Added to NAC by Pub. Utilities Comm’n by R210-09, eff. 4-20-2010)

      NAC 701B.210  “Customer” defined. (NRS 701B.336, 701B.342, 703.025)  “Customer” means a customer of a utility that supplies natural gas in this State.

     (Added to NAC by Pub. Utilities Comm’n by R210-09, eff. 4-20-2010)

      NAC 701B.215  “Eligible contractor” defined. (NRS 701B.336, 701B.342, 703.025)  “Eligible contractor” means a person who has satisfied the requirements set forth in NAC 701B.285 and any additional requirements to install solar thermal systems for the customers of a utility set forth in the annual plan of the utility filed pursuant to NAC 701B.235.

     (Added to NAC by Pub. Utilities Comm’n by R210-09, eff. 4-20-2010)

      NAC 701B.220  “Program” and “Solar Thermal Program” defined. (NRS 701B.336, 701B.342, 703.025)  “Program” or “Solar Thermal Program” means the Solar Thermal Systems Demonstration Program established by NAC 701B.230.

     (Added to NAC by Pub. Utilities Comm’n by R210-09, eff. 4-20-2010)

      NAC 701B.225  “Solar Thermal Program rate” defined. (NRS 701B.336, 701B.342, 703.025)  “Solar Thermal Program rate” means the rate established pursuant to NRS 704.110 to recover the costs of the Solar Thermal Program.

     (Added to NAC by Pub. Utilities Comm’n by R210-09, eff. 4-20-2010)

Administration of Program

      NAC 701B.230  Establishment of Program; categories of participants. (NRS 701B.336, 701B.342, 703.025)

     1.  In accordance with the requirements of NRS 701B.336, the Commission hereby establishes the Solar Thermal Systems Demonstration Program for use by public utilities that supply natural gas in this State.

     2.  The Solar Thermal Program consists of the following categories of participants:

     (a) School property;

     (b) Public and other property;

     (c) Private residential property; and

     (d) Small business property.

     (Added to NAC by Pub. Utilities Comm’n by R210-09, eff. 4-20-2010)

      NAC 701B.235  Annual plan of utility: Filing and contents; approval by Commission. (NRS 701B.336, 701B.342, 703.025)

     1.  Not later than July 19, 2010, and annually thereafter, each utility that supplies natural gas in this State shall file with the Commission a plan which must include:

     (a) A schedule describing major program milestones of the Solar Thermal Program.

     (b) A budget which includes information relating to:

          (1) Rebates;

          (2) Contractor costs;

          (3) Marketing costs;

          (4) Training costs; and

          (5) Utility administrative costs.

     (c) Following the first plan year, a report on the productivity of the Solar Thermal Program for the previous year and a status report on the current year, including, without limitation:

          (1) The number of applications received by the utility in each category of the Solar Thermal Program;

          (2) The number of participants in the Solar Thermal Program and the number of participants who have withdrawn from the Solar Thermal Program;

          (3) The annual budget and expenditures of the Solar Thermal Program;

          (4) A list of completed installations;

          (5) A summary of marketing efforts; and

          (6) A description of training for inspectors, certifiers and eligible contractors and educational activities.

     (d) A description of the application process, including, without limitation:

          (1) The procedures to be followed by the applicant and the utility; and

          (2) Copies of current or proposed applications and forms.

     (e) A detailed advertising plan.

     (f) An education and training plan, including, without limitation, a tentative schedule of training to be offered by the utility.

     (g) An inspection and verification plan.

     (h) Any recommendations on modifications to the existing schedule of rebates.

     2.  Within 150 days after a utility has filed an annual plan, the Commission will issue an order approving the annual plan with such modifications and upon such terms and conditions as the Commission finds necessary or appropriate to facilitate the Program.

     (Added to NAC by Pub. Utilities Comm’n by R210-09, eff. 4-20-2010; A by R083-11, 5-30-2012)

      NAC 701B.240  Separate accounting for certain costs of utility; selection of accounting method; recoverable costs. (NRS 701B.336, 701B.342, 703.025)

     1.  All reasonable and prudent costs associated with carrying out and administering the Solar Thermal Program must be accounted for in the books and records of a utility separately from amounts attributable to any other activity. The utility must select a method pursuant to NAC 701B.245 or 701B.250 to account for such costs and revenues.

     2.  The costs that may be recoverable include, without limitation, costs for labor, materials, rebates, contractors, training, advertising, marketing, measurement, verification, evaluation and overhead, and utility administrative costs.

     (Added to NAC by Pub. Utilities Comm’n by R210-09, eff. 4-20-2010)

      NAC 701B.245  Method of accounting for costs and revenues of utility; filing, calculation and adjustment of Solar Thermal Program rate; recovery of Program costs. (NRS 701B.336, 701B.342, 703.025)

     1.  Except as otherwise provided in NAC 701B.250, a utility shall account for costs and revenues in the following manner:

     (a) Calculate, on a monthly basis, the costs incurred and revenues received in the Solar Thermal Program since the end of the test period in its last proceeding to change the Solar Thermal Program rate;

     (b) Record the cost of the Solar Thermal Program in a separate subaccount of FERC Account No. 182.3 and make an appropriate offset to other subaccounts;

     (c) Maintain subsidiary records of the subaccount of FERC Account No. 182.3 which must clearly delineate, without limitation, the rebates, contractor costs, marketing costs, training costs and utility administrative costs associated with the Solar Thermal Program;

     (d) Record in the subaccount of FERC Account No. 182.3 the revenues attributable to the Solar Thermal Program rate to recover the costs of the Solar Thermal Program; and

     (e) Apply a carrying charge at the rate of one-twelfth of the authorized rate of return to the monthly ending balance in the subaccount of FERC Account No. 182.3.

     2.  A utility shall include with its annual rate adjustment application filed pursuant to subsection 9 of NRS 704.110 a revised Solar Thermal Program rate. The revised Solar Thermal Program rate must be calculated by adding the following two components:

     (a) A prospective rate determined by dividing the total costs in the Solar Thermal Program annual plan by the projected therms for the program year; and

     (b) A clearing rate determined by dividing the cumulative balance in the Solar Thermal Program subaccount of FERC Account No. 182.3 at the end of the test period identified by the utility, consisting of the 12 calendar months ending on the adjustment date, consistent with NAC 704.063, by the therm sales for that test period.

     3.  The Commission will allow recovery of all prudent Solar Thermal Program costs included in the subaccount of FERC Account No. 182.3 at the end of the identified test period, as defined in NAC 704.063, and adjust the Solar Thermal Program rate accordingly.

     (Added to NAC by Pub. Utilities Comm’n by R210-09, eff. 4-20-2010; A by R076-11, 5-30-2012)

      NAC 701B.250  Alternative method of accounting for costs and revenues of utility. (NRS 701B.336, 701B.342, 703.025)  In lieu of accounting for costs and revenues in the manner set forth in NAC 701B.245, a utility may account for costs and revenues in the following manner:

     1.  The utility may recover approved costs through a per-therm surcharge after application and Commission approval.

     2.  The utility shall account for costs and revenues on a monthly basis in the following manner:

     (a) Debit the account for costs for implementing and administering the Solar Thermal Program and record monthly;

     (b) Credit the account for the revenues attributable to the Solar Thermal Program rate; and

     (c) Apply a carrying charge equal to one-twelfth of the authorized overall rate of return to the monthly balance.

     3.  The accumulated amount in the program account balance must be cleared by establishing a surcharge or credit to amortize the account balance over a 1-year period, unless otherwise specified by the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R210-09, eff. 4-20-2010)

      NAC 701B.255  Allocation of number of solar thermal systems to be installed; rebate payment levels. (NRS 701B.336, 701B.342, 703.025)

     1.  To reach the goal of at least 3,000 solar thermal installations by 2019, the allocation of the number of solar thermal systems to be installed for each utility must be based on the approximate number of customers of the utility on September 30, 2009.

     2.  Except as otherwise provided in subsection 3:

     (a) For a utility that has more than 600,000 customers:

          (1) The total number of solar thermal systems to be installed is 2,430.

          (2) The number of solar thermal systems to be installed in each of the first and second rebate steps is 486.

          (3) The number of solar thermal systems to be installed in the third rebate step is 1,458.

     (b) For any other utility:

          (1) The total number of solar thermal systems to be installed is 570.

          (2) The number of solar thermal systems to be installed in each of the first and second rebate steps is 114.

          (3) The number of solar thermal systems to be installed in the third rebate step is 342.

     3.  The utility may file with the Commission a request to adjust the number of solar thermal systems required to be installed pursuant to subsection 2 to maximize participation in the Program.

     4.  The utility shall calculate its progress in meeting the number of solar thermal systems to be installed that are required pursuant to this section for each rebate step by using the number of projects that have been determined eligible and have been issued notices that incentive reservations have been confirmed for those projects. An unused reservation from a previous rebate step or current rebate step that becomes available as the result of applicants withdrawing or being withdrawn from the Program must be added to the number of solar thermal systems in the current step. When the total number of solar thermal systems in any rebate step has been issued, any subsequent reservations must be issued at the next rebate step.

     5.  The rebate payment levels must automatically be reduced over the duration of the Solar Thermal Program in three steps, based on the volume of confirmed reservations. The duration of each step must be dependent on when the utility reaches its goal. The amount of the rebate for each step of the Solar Thermal Program is as follows:

     (a) For the first rebate step:

 

Category

Category Incentives

Rebate Level

Maximum Rebates

School Property

27

$19.00 times therms per year rating of the system

The lesser of 50 percent of system cost or $30,000

Public and Other

Property

27

$19.00 times therms per year rating of the system

The lesser of 50 percent of system cost or $30,000

Private Residential

Property

420

$14.50 times therms per year rating of the system

The lesser of 30 percent of system cost or $3,000

Small Business

Property

126

$14.50 times therms per year rating of the system

The lesser of 30 percent of system cost or $7,500

 

     (b) For the second rebate step:

 

Category

Category Incentives

Rebate Level

Maximum Rebates

School Property

27

$17.00 times therms per year rating of the system

The lesser of 50 percent of system cost or $30,000

Public and Other

Property

27

$17.00 times therms per year rating of the system

The lesser of 50 percent of system cost or $30,000

Private Residential

Property

420

$13.00 times therms per year rating of the system

The lesser of 30 percent of system cost or $3,000

Small Business

Property

126

$13.00 times therms per year rating of the system

The lesser of 30 percent of system cost or $7,500

 

     (c) For the third rebate step:

 

Category

Category Incentives

Rebate Level

Maximum Rebates

School Property

81

$14.00 times therms per year rating of the system

The lesser of 50 percent of system cost or $30,000

Public and Other

Property

81

$14.00 times therms per year rating of the system

The lesser of 50 percent of system cost or $30,000

Private Residential

Property

1,260

$11.00 times therms per year rating of the system

The lesser of 30 percent of system cost or $3,000

Small Business

Property

378

$11.00 times therms per year rating of the system

The lesser of 30 percent of system cost or $7,500

 

     6.  For the first 120 days after a rebate step is opened to applications, a utility shall not approve an applicant for more than 25 percent of the projects available in each category within the service territory of the utility. After the expiration of the 120-day period, an applicant may receive approval for any amount of the remaining capacity, regardless of the total number of approved applications held by the applicant.

     7.  If the rebates specified in this section change between the time an application for reservation of an incentive is approved and the time the solar thermal system is complete, the applicant must receive the rebate which was in effect at the time that the application was approved.

     (Added to NAC by Pub. Utilities Comm’n by R210-09, eff. 4-20-2010)

      NAC 701B.260  Incentives for private residential property and small business property: Eligibility for rebate; application for reservation; cancellation and resubmission of application; duties of utility and applicant; claim for rebate. (NRS 701B.336, 701B.342, 703.025)

     1.  To be eligible for a rebate pursuant to the Solar Thermal Program, a solar thermal system which is installed on property that is included within the category of private residential property or small business property is subject to the provisions of this section.

     2.  An applicant must submit an application for reservation of an incentive to the utility using forms provided by the utility and approved by the Commission. The application must be accompanied by a copy of:

     (a) A contract signed by a customer of the utility;

     (b) All warranties applicable to the solar thermal system and the installation of the solar thermal system;

     (c) Authorization to act on behalf of the customer, if applicable; and

     (d) An attestation executed by the contractor stating that the project will satisfy siting requirements as determined by the utility.

     3.  The application must require the applicant to estimate the annual savings of therms per year and the amount of any rebate for which the solar thermal system is eligible based on all information available at the time the application is submitted to the utility.

     4.  If the application is determined by the utility to be incomplete or to require clarification, the utility shall request additional information from the applicant. If the applicant fails to submit the requested information within 20 calendar days after receipt of the request, the utility shall cancel the application. If an application is cancelled by the utility, the applicant may resubmit an application for the project to the utility. All resubmitted applications must be treated as new applications and be processed in sequence with other new applications. Rebate money must not be reserved until the utility receives all required information and documentation and approves the project.

     5.  The utility shall, within 30 days after receipt of a complete application, review the application and determine eligibility for a rebate. If the utility approves the project, the utility shall issue a confirmed reservation notice for the project. The confirmed reservation notice must specify:

     (a) The dollar amount of the rebate reserved for the project;

     (b) An expiration date for the reservation of the rebate, which must be 12 months after the date of issuance of the notice; and

     (c) That the solar thermal system must be purchased, installed and put into operation not later than the expiration date specified in the confirmed reservation notice.

     6.  After the solar thermal system has been purchased, installed and put into operation, the applicant must submit to the utility a rebate claim package which includes a rebate claim form and all supporting documentation required by the utility. The rebate claim form must be signed by both the eligible contractor and the customer.

     7.  To receive the rebate, all requirements of the Solar Thermal Program must be met and a complete rebate claim package must be submitted to the utility before the expiration date specified in the confirmed reservation notice.

     8.  If a rebate claim package is incomplete or requires clarification, the utility shall request the required information from the applicant. If the applicant fails to provide the required information within 20 calendar days after receiving the request for information, the utility may reject the rebate claim form. If a rebate claim package is not received on or before the expiration date specified in the confirmed reservation notice, or the information in the rebate claim package indicates that the project is otherwise ineligible, the utility shall send a written notice to the applicant stating the reasons why the project is rejected and not eligible for a rebate. The applicant may resubmit a rebate claim package but will be subject to the eligibility requirements, rebate levels and funding available at the time of the resubmission.

     (Added to NAC by Pub. Utilities Comm’n by R210-09, eff. 4-20-2010)

      NAC 701B.265  Incentives for school property and public and other property: Eligibility for rebate; application for reservation; duties of utility and applicant; cancellation of application; claim for rebate. (NRS 701B.336, 701B.342, 703.025)

     1.  To be eligible for a rebate pursuant to the Solar Thermal Program, a solar thermal system which is installed on property that is included within the category of school property or public and other property is subject to the provisions of this section.

     2.  An applicant, after issuing a request for proposals or making any other solicitation for the installation of the solar thermal system, must submit an application for reservation of an incentive to the utility using forms provided by the utility and approved by the Commission. The application must be accompanied by a copy of:

     (a) The request for proposals or other solicitation for the installation of the solar thermal system or a copy of an executed agreement for the purchase and installation of the solar thermal system;

     (b) The signature of the applicant; and

     (c) Authorization to act on behalf of the customer, if applicable.

     3.  The application must require the applicant to estimate the annual savings of therms per year and the amount of any rebate for which the solar thermal system is eligible based on all information available at the time the application is submitted to the utility.

     4.  The utility shall, within 30 days after receipt of the application, review the application and determine whether it is complete. Once the utility determines that the application is complete, the utility shall reserve money allocated for the specified size of the solar thermal system and send a notice to the applicant. The notice must specify:

     (a) The incentive amount that has been reserved for the project;

     (b) The expiration date of the notice, which must be 30 months after the date of the notice;

     (c) That the solar thermal system must be purchased, installed and put into operation not later than the expiration date specified in the confirmed reservation notice;

     (d) The date 90 days after the issuance of the notice by which the applicant must submit a checklist approved by the Commission documenting the progress of the project and demonstrating that the project is progressing and there is a sustained commitment to complete the project within 30 months after the date of the notice; and

     (e) The date 270 days after the issuance of the notice by which the applicant must submit all documentation required to confirm the reservation in the initial notice, including, without limitation:

          (1) A copy of the executed agreement for the purchase and installation of the solar thermal system; and

          (2) Any documentation required by the utility which substantiates ownership of the equipment.

     5.  The reservation of money pursuant to subsection 4 expires upon the failure of the applicant to satisfy the proof of progress requirements set forth in paragraph (d) or (e) of subsection 4 by the respective deadlines specified in those paragraphs.

     6.  If the proof of progress required by paragraph (d) or (e) of subsection 4 is received by the utility on or before the respective deadlines specified in those paragraphs but is determined to be incomplete or to require clarification, the utility shall request additional information. If the applicant fails to submit the additional requested information within 20 calendar days after receipt of the request, the application must be cancelled. Once the applicant has sufficiently demonstrated that the project is progressing, the utility shall issue a notice that the reservation has been confirmed.

     7.  If the applicant provides documentation to satisfy all the requirements described in subsections 2, 3 and 4 at the time of the initial application, the utility shall, within 30 days after receipt of the application:

     (a) Review the application and determine whether it is complete; and

     (b) Either issue a notice that the project has a confirmed reservation or request more information as described in subsection 4.

     8.  After the solar thermal system has been purchased, installed and put into operation, the applicant must submit to the utility a rebate claim package which includes a rebate claim form and all supporting documentation required by the utility. The rebate claim form must be signed by both the eligible contractor and the customer.

     9.  To receive the rebate, all requirements of the Solar Thermal Program must be met and a complete rebate claim package must be submitted to the utility before the expiration date specified in the confirmed reservation notice.

     10.  If a rebate claim package is incomplete or requires clarification, the utility shall request the required information from the applicant. If the applicant fails to provide the required information within 20 calendar days after receiving the request for information, the utility may reject the rebate claim form. If a rebate claim package is not received on or before the expiration date specified in the confirmed reservation notice, or the information in the rebate claim package indicates that the project is otherwise ineligible, the utility shall send a written notice to the applicant stating the reasons why the project is rejected and not eligible for a rebate. The applicant may resubmit a rebate claim package but will be subject to the eligibility requirements, rebate levels and funding available at the time of the resubmission.

     (Added to NAC by Pub. Utilities Comm’n by R210-09, eff. 4-20-2010)

      NAC 701B.270  Eligibility of applicant who withdraws from Program or does not complete installation of solar thermal system. (NRS 701B.336, 701B.342, 703.025)  An applicant who withdraws from the Program or does not complete the installation of a solar thermal system:

     1.  For private residential property or small business property, within 12 months after the expiration date on the confirmation notice; or

     2.  For school property or public and other property, within 30 months after the expiration date on the confirmation notice,

Ę must reapply as a new applicant and satisfy all requirements of the Program in effect at the time of reapplication to be eligible for a rebate.

     (Added to NAC by Pub. Utilities Comm’n by R210-09, eff. 4-20-2010)

      NAC 701B.275  Notification of customer of record regarding correspondence between utility and applicant. (NRS 701B.336, 701B.342, 703.025)  If the applicant is not the customer of record, the utility shall notify the customer of record of all correspondence between the utility and the applicant throughout the Program process.

     (Added to NAC by Pub. Utilities Comm’n by R210-09, eff. 4-20-2010)

      NAC 701B.280  Solar thermal systems: Qualifications for Program. (NRS 701B.336, 701B.342, 703.025)  To qualify for the Solar Thermal Program, a solar thermal system must:

     1.  Be located on property within the Nevada service territory of a participating utility.

     2.  Be installed in a building which is connected to an existing distribution system of a participating utility.

     3.  Consist of solar thermal system components that are new and unused.

     4.  Have a manufacturer’s warranty of not less than 10 years that covers the solar collectors of the solar thermal system against defects and undue degradation.

     5.  Have a manufacturer’s warranty of not less than 5 years that covers each new tank of the solar thermal system, if any.

     6.  Have a workmanship warranty of not less than 2 years that covers the installation of the solar thermal system, including labor and materials.

     7.  Be installed in conformity with the manufacturer’s specifications and all applicable codes and standards.

     8.  Be installed by an eligible contractor.

     9.  Have:

     (a) An OG-300 certification which is issued by the Solar Rating and Certification Corporation or any other performance certification that is approved by the Commission; or

     (b) An OG-100 certification which is issued by the Solar Rating and Certification Corporation or any other performance certification that is approved by the Commission, and which must include:

          (1) Documentation that supports the sound design and expected performance of the solar thermal system; and

          (2) The stamp or seal of a professional engineer, the signature of the engineer attesting to the sound design of the solar thermal system and the estimated annual savings of therms per year, the date of signing and the date of expiration of the license of the engineer.

     (Added to NAC by Pub. Utilities Comm’n by R210-09, eff. 4-20-2010; A by R083-11, 5-30-2012)

      NAC 701B.285  Eligible contractors: Requirements for qualification; duties of utility; suspension of license during application process. (NRS 701B.336, 701B.342, 703.025)

     1.  To qualify as an eligible contractor to install solar thermal systems for the customers of a utility under the Solar Thermal Program, a contractor must:

     (a) Submit to the utility annually:

          (1) A contractor participation application on a form provided by the utility;

          (2) Proof that the contractor has been issued the appropriate license by the State Contractors’ Board;

          (3) Proof of valid workers’ compensation insurance if the contractor is required by law to carry such insurance, commercial general liability insurance and business auto insurance; and

          (4) Documentation of all warranties that will apply to solar thermal systems installed by the contractor.

     (b) Successfully complete a 1-day training workshop provided by the utility.

     (c) Satisfy any additional requirements to install solar thermal systems for the customers of the utility set forth in the annual plan of the utility filed pursuant to NAC 701B.235.

     2.  A utility shall maintain a list of all contractors who are eligible to install solar thermal systems for customers of the utility under the Solar Thermal Program.

     3.  In reviewing a contractor participation application submitted pursuant to this section, a utility shall verify that the contractor’s license issued by the State Contractors’ Board is currently valid and active. If the utility determines that the contractor’s license was suspended during the application process:

     (a) The utility shall not confirm any incentive reservation associated with the contractor;

     (b) The utility shall suspend any application associated with the contractor;

     (c) The utility shall not make any incentive payment for a solar thermal system associated with the contractor, unless the solar thermal system was put into operation before the suspension of the license;

     (d) The utility shall notify each party identified on the application of the suspension; and

     (e) If the solar thermal system has not been installed, the customer may hire a new contractor without losing the current incentive reservation.

     4.  Upon a determination that a contractor’s license has been reinstated by the State Contractors’ Board, the utility shall reinstate any application suspended pursuant to subsection 3, may confirm any incentive reservation associated with the contractor and may make any incentive payment for a solar thermal system associated with the contractor.

     5.  The utility shall provide on its Internet website, adjacent to its application forms, a best practices guide to selecting a contractor and other consumer resources, including, without limitation, the contact information of the State Contractors’ Board.

     (Added to NAC by Pub. Utilities Comm’n by R210-09, eff. 4-20-2010; A by R083-11, 5-30-2012)

      NAC 701B.290  Eligible contractors: Installation of solar thermal system that uses solar energy to heat water. (NRS 701B.336, 701B.342, 703.025)  When installing a solar thermal system that uses solar energy to heat water, an eligible contractor:

     1.  Except as otherwise provided in subsection 2, shall use a two-tank system, where a new tank is dedicated to storing water heated by solar panels and the customer’s existing tank is used to heat water with natural gas.

     2.  In a retrofit application, may use just a customer’s existing tank in combination with an external heat exchanger if:

     (a) The existing tank is still under warranty or is less than 3 years old;

     (b) The application includes the stamp or seal of a professional engineer, the signature of the engineer attesting to the expected performance and sound design of the solar thermal system, the date of signing and the date of expiration of the license of the engineer; and

     (c) The customer is provided with a written disclosure consisting of an estimate of the efficiency of a one-tank system with an external heat exchanger compared to an estimate of the efficiency of a two-tank system, all other variables being the same or reasonably similar.

     (Added to NAC by Pub. Utilities Comm’n by R210-09, eff. 4-20-2010)

RENEWABLE ENERGY SCHOOL PILOT PROGRAM

General Provisions

      NAC 701B.300  Definitions. (NRS 701B.350, 703.025)  As used in NAC 701B.300 to 701B.365, inclusive, unless the context otherwise requires, the words and terms defined in NAC 701B.305 to 701B.340, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R204-07, eff. 4-17-2008)

      NAC 701B.305  “Generating capacity” defined. (NRS 701B.350, 703.025)  “Generating capacity” means the sum total of the nameplate capacities of the electrical generating units and associated facilities of a particular renewable energy system or combination of renewable energy systems.

     (Added to NAC by Pub. Utilities Comm’n by R204-07, eff. 4-17-2008)

      NAC 701B.310  “Nameplate capacity” defined. (NRS 701B.350, 703.025)  “Nameplate capacity” means maximum output capacity as set forth on the nameplate attached to an electrical generating unit by the manufacturer.

     (Added to NAC by Pub. Utilities Comm’n by R204-07, eff. 4-17-2008)

      NAC 701B.315  “Renewable Energy School Pilot Program” and “Program” defined. (NRS 701B.350, 703.025)  “Renewable Energy School Pilot Program” or “Program” means the program created by NRS 701B.350.

     (Added to NAC by Pub. Utilities Comm’n by R204-07, eff. 4-17-2008)

      NAC 701B.320  “Renewable energy system” defined. (NRS 701B.350, 703.025)  “Renewable energy system” has the meaning ascribed to it in NRS 701B.350.

     (Added to NAC by Pub. Utilities Comm’n by R204-07, eff. 4-17-2008)

      NAC 701B.325  “Renewable energy system generator” defined. (NRS 701B.350, 703.025)  “Renewable energy system generator” means an entity that may take advantage of any tax benefits available for the installation and operation of a renewable energy system or combination of renewable energy systems under the Renewable Energy School Pilot Program. The term does not include a school district or utility.

     (Added to NAC by Pub. Utilities Comm’n by R204-07, eff. 4-17-2008)

      NAC 701B.330  “School district” defined. (NRS 701B.350, 703.025)  “School district” has the meaning ascribed to it in NRS 701B.350.

     (Added to NAC by Pub. Utilities Comm’n by R204-07, eff. 4-17-2008)

      NAC 701B.335  “School property” defined. (NRS 701B.350, 703.025)  “School property” has the meaning ascribed to it in NRS 701B.350.

     (Added to NAC by Pub. Utilities Comm’n by R204-07, eff. 4-17-2008)

      NAC 701B.340  “Utility” defined. (NRS 701B.350, 703.025)  “Utility” has the meaning ascribed to it in NRS 701B.350.

     (Added to NAC by Pub. Utilities Comm’n by R204-07, eff. 4-17-2008)

Administration of Program

      NAC 701B.345  Written description of Program: Provision to school districts; contents. (NRS 701B.350, 703.025)

     1.  A utility shall provide to each school district within its service area a written description of the Renewable Energy School Pilot Program on or before:

     (a) May 1, 2008; and

     (b) February 1 of each calendar year thereafter for as long as the Program is in existence.

     2.  The written description of the Renewable Energy School Pilot Program must include, without limitation, the following:

     (a) A summary of any applicable Nevada laws and regulations related to the Program;

     (b) A copy of any applicable Nevada laws and regulations related to the Program;

     (c) A description of any incentives available for participation in the Program; and

     (d) The contact information for a person within the utility who shall provide additional information and answer questions about the Program.

     (Added to NAC by Pub. Utilities Comm’n by R204-07, eff. 4-17-2008)

      NAC 701B.350  Application to participate in Program. (NRS 701B.350, 703.025)  A school district may apply to participate in the Renewable Energy School Pilot Program by delivering to a person designated by the applicable utility a letter of intent, which must include, without limitation, the following information:

     1.  The name and address of the school and the school property at which the proposed renewable energy system or combination of renewable energy systems will be located;

     2.  The name, address, telephone number and electronic mail address of the person or persons charged with implementing and managing the Program at the school district;

     3.  The size and type of the proposed renewable energy system or combination of renewable energy systems;

     4.  A project timeline for the installation of the proposed renewable energy system or combination of renewable energy systems, including, without limitation, a list of project milestones for the process of installation;

     5.  The name and contact information for any renewable energy system generator involved in the implementation or management of the Program; and

     6.  A summary of the material terms of any proposed transaction or agreement involving a renewable energy system generator.

     (Added to NAC by Pub. Utilities Comm’n by R204-07, eff. 4-17-2008)

      NAC 701B.355  Location of renewable energy systems. (NRS 701B.350, 703.025)  A renewable energy system or combination of renewable energy systems used for the Program must be located on the school property where the electricity generated will be consumed.

     (Added to NAC by Pub. Utilities Comm’n by R204-07, eff. 4-17-2008)

      NAC 701B.360  Limitation on generating capacity of renewable energy systems; participation in net metering. (NRS 701B.350, 703.025)

     1.  Under the Renewable Energy School Pilot Program, a school district shall not install a renewable energy system or combination of renewable energy systems that has a generating capacity that exceeds 150 percent of the peak demand of the school.

     2.  If a renewable energy system used in the Program meets the requirements of NRS 704.766 to 704.775, inclusive, the school district is entitled to participate in net metering pursuant to the provisions of NRS 704.766 to 704.775, inclusive.

     (Added to NAC by Pub. Utilities Comm’n by R204-07, eff. 4-17-2008)

      NAC 701B.365  Transactions allowed under Program; filing of tariffs for approval by Commission. (NRS 701B.350, 703.025)

     1.  The transactions allowed under the Renewable Energy School Pilot Program are limited to:

     (a) If the renewable energy system or combination of renewable energy systems is owned by the school district, a transaction between the school district and the utility in which the school district sells to the utility the energy generated by the renewable energy system or combination of renewable energy systems;

     (b) If the renewable energy system or combination of renewable energy systems is located on school property and is owned by a renewable energy system generator, one or more transactions in which:

          (1) The renewable energy system generator sells to the utility the energy generated by the renewable energy system or combination of renewable energy systems;

          (2) The school district purchases the electricity from the utility according to the appropriate tariff; and

          (3) The rate for energy and capacity purchased by the utility from the renewable energy system generator and resold to the school district must be the same rate as that negotiated between the renewable energy system generator and the school district; or

     (c) Such other transactions as the Commission may approve from time to time, including, without limitation, partnerships or joint ventures with renewable energy system generators, based upon the submission of the applicable tariffs for the proposed transactions.

     2.  A utility shall file for approval by the Commission a tariff that sets forth further requirements for transactions under the Program, as administered in the service area of the utility.

     (Added to NAC by Pub. Utilities Comm’n by R204-07, eff. 4-17-2008)

WIND ENERGY SYSTEMS DEMONSTRATION PROGRAM

General Provisions

      NAC 701B.400  Definitions. (NRS 701B.005, 701B.590, 703.025)  As used in NAC 701B.400 to 701B.545, inclusive, unless the context otherwise requires, the words and terms defined in NAC 701B.410 to 701B.475, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R174-07, eff. 4-17-2008; A by R185-09, 4-20-2010; R122-13, 2-26-2014)

      NAC 701B.410  “Applicant” defined. (NRS 701B.590, 703.025)  “Applicant” has the meaning ascribed to it in NRS 701B.430.

     (Added to NAC by Pub. Utilities Comm’n by R174-07, eff. 4-17-2008)

      NAC 701B.415  “Category” defined. (NRS 701B.590, 703.025)  “Category” has the meaning ascribed to it in NRS 701B.440.

     (Added to NAC by Pub. Utilities Comm’n by R174-07, eff. 4-17-2008)

      NAC 701B.420  “Commission” defined. (NRS 701B.590, 703.025)  “Commission” has the meaning ascribed to it in NRS 701B.450.

     (Added to NAC by Pub. Utilities Comm’n by R174-07, eff. 4-17-2008)

      NAC 701B.423  “Corporation for public benefit” defined. (NRS 701B.005, 701B.590, 703.025)  “Corporation for public benefit” means a corporation that is organized for a public or charitable purpose and which upon dissolution must distribute its assets to the United States, a state, or a person which is recognized as exempt pursuant to 26 U.S.C. § 501(c)(3).

     (Added to NAC by Pub. Utilities Comm’n by R122-13, eff. 2-26-2014)

      NAC 701B.425  “Host customer” defined. (NRS 701B.590, 703.025)  “Host customer” means either the utility customer of record at the location where a wind energy system will be located or a person who has been designated by the utility customer of record in a letter to the utility explaining the relationship between that person and the utility customer of record.

     (Added to NAC by Pub. Utilities Comm’n by R185-09, eff. 4-20-2010)

      NAC 701B.430  “Participant” defined. (NRS 701B.590, 703.025)  “Participant” has the meaning ascribed to it in NRS 701B.470.

     (Added to NAC by Pub. Utilities Comm’n by R174-07, eff. 4-17-2008)

      NAC 701B.455  “System owner” defined. (NRS 701B.590, 703.025)  “System owner” means the owner of the generating equipment at the time an incentive is paid. If a wind energy system is owned by a third party, the third party is the system owner.

     (Added to NAC by Pub. Utilities Comm’n by R185-09, eff. 4-20-2010)

      NAC 701B.460  “Utility” defined. (NRS 701B.590, 703.025)  “Utility” has the meaning ascribed to it in NRS 701B.540.

     (Added to NAC by Pub. Utilities Comm’n by R174-07, eff. 4-17-2008)

      NAC 701B.465  “Wind Demonstration Program” and “Program” defined. (NRS 701B.590, 703.025)  “Wind Demonstration Program” or “Program” has the meaning ascribed to it in NRS 701B.550.

     (Added to NAC by Pub. Utilities Comm’n by R174-07, eff. 4-17-2008)

      NAC 701B.470  “Wind Demonstration Program rate” defined. (NRS 701B.590, 703.025)  “Wind Demonstration Program rate” means the rate established pursuant to NAC 701B.495.

     (Added to NAC by Pub. Utilities Comm’n by R174-07, eff. 4-17-2008)

      NAC 701B.475  “Wind energy system” defined. (NRS 701B.590, 703.025)  “Wind energy system” has the meaning ascribed to it in NRS 701B.560.

     (Added to NAC by Pub. Utilities Comm’n by R174-07, eff. 4-17-2008)

Administration of Program

      NAC 701B.480  Annual plan of utility: Filing and contents. (NRS 701B.005, 701B.590, 701B.610, 703.025)  Pursuant to NRS 701B.610, a utility shall file with the Commission an annual plan which must include the following:

     1.  A schedule describing major program milestones.

     2.  A budget with the following categories:

     (a) Contractor costs;

     (b) Marketing costs;

     (c) Training costs; and

     (d) Utility administrative costs.

     3.  A report on the activity of the Program during the immediately preceding calendar year and the current calendar year which includes, without limitation, the most up-to-date versions of the following information for each calendar year:

     (a) The number of applications filed in each program category;

     (b) The number of participants enrolled in the Program and the number who have dropped out of the Program;

     (c) The annual budget and expenditures;

     (d) Any remaining financial obligations at the end of a calendar year;

     (e) A list of completed installations;

     (f) A summary of marketing efforts;

     (g) A description of training and educational activities; and

     (h) The results of participant surveys.

     4.  A description of the application process, including, without limitation:

     (a) The procedures to be followed by the utility and the applicant;

     (b) The criteria for the selection of applicants for the Program;

     (c) Copies of proposed applications and forms; and

     (d) The procedures for a participant to claim the incentive at completion of the project and a copy of the required claim form, which must include, at a minimum, the following data and attachments:

          (1) The name and address of the participant;

          (2) The address at which the wind energy system is located;

          (3) The technical description of the main components of the wind energy system if different from the application;

          (4) An assignment of the incentive payment, if applicable;

          (5) A building permit signed off by the applicable governing jurisdiction to ensure that the wind energy system complies with all local codes;

          (6) A voltage verification form to ensure that the meter socket is ready for meter set;

          (7) An invoice for the wind energy system to ensure that a properly licensed contractor performed the required work and that the wind energy system equipment is new and has not been previously installed; and

          (8) A net metering agreement if not previously provided.

     5.  The total of all incentives paid for the immediately preceding calendar year.

     6.  The total of all incentives projected to be paid for the calendar year, with subtotals for incentives paid for installed capacity, incentives projected to be paid for active reservations and incentives forecasted to be paid.

     7.  A detailed advertising plan.

     8.  An education and training plan.

     9.  Standards and requirements for applicants to provide proof of wind speeds at tower sites for participating wind energy systems.

     10.  Proposed wind turbine certification lists for the next subsequent calendar year which outline the wind turbine models eligible for participation in the Program. After notifying the Commission, the utility may modify the wind turbine certification lists to address changes in the certification programs or suspend turbines from participation in the Program which have a demonstrated pattern of failure or unreliability.

     11.  An inspection and verification plan for wind energy systems which verifies that an applicant or participant meets all applicable requirements.

     12.  The average installed cost in Nevada of a wind energy system during the immediately preceding calendar year.

     13.  A graph and table showing the cumulative committed capacity and incurred incentive liability, separated into installed capacity and active reservations, at the end of each year since the inception of the Program.

     14.  A table demonstrating the effects of the Program on the rates paid by customers.

     15.  A survey for participants which includes, without limitation, questions on:

      (a) The operational effectiveness of the participant’s wind energy system, including, without limitation, the total kilowatt-hours of electricity generated per calendar year;

     (b) Environmental issues, including, without limitation, the number of birds killed in relation to the wind energy system, the noise produced by the system and any other aesthetic issues related to the system; and

     (c) Any other information regarding the effectiveness of the Program.

     (Added to NAC by Pub. Utilities Comm’n by R174-07, eff. 4-17-2008; A by R185-09, 4-20-2010; R025-12, 9-14-2012; R122-13, 2-26-2014)

      NAC 701B.485  Annual plan of utility: Approval by Commission. (NRS 701B.590, 703.025)  Not later than 150 days after the annual plan is filed pursuant to NAC 701B.480, the Commission will issue an order approving the annual plan with such modifications and upon such terms and conditions as the Commission finds necessary or appropriate to facilitate the Program.

     (Added to NAC by Pub. Utilities Comm’n by R174-07, eff. 4-17-2008)

      NAC 701B.490  Accounting for costs and revenues of utility; recovery of utility’s labor costs and overhead costs. (NRS 701B.590, 703.025)

     1.  All reasonable and prudent costs associated with carrying out and administering the Wind Demonstration Program must be accounted for in the books and records of a utility separately from amounts attributable to any other activity. The utility must account for the costs and revenues in the following manner:

     (a) Calculate, on a monthly basis, the costs incurred and revenues received in the Wind Demonstration Program since the end of the test period in its last proceeding to change the Wind Demonstration Program rate;

     (b) Record the cost of the Wind Demonstration Program in a separate subaccount of FERC Account No. 182.3 and record an offset in the appropriate subaccount of other FERC accounts;

     (c) Maintain subsidiary records of the subaccount of FERC Account No. 182.3 which must clearly delineate, without limitation, the incentives, contractor costs, marketing costs, training costs and utility administrative costs associated with the Wind Demonstration Program;

     (d) Record in the subaccount of FERC Account No. 182.3 the revenues attributable to the rate established pursuant to NAC 701B.495 to recover the Wind Demonstration Program cost; and

     (e) Apply a carrying charge at the rate of 1/12 of the authorized rate of return to the monthly ending balance in the subaccount of FERC Account No. 182.3.

     2.  The utility’s labor costs and overhead costs related to the Wind Demonstration Program must be recovered in a general rate case filing.

     (Added to NAC by Pub. Utilities Comm’n by R174-07, eff. 4-17-2008; A by R051-09, 1-28-2010)

      NAC 701B.495  Filing, calculation and adjustment of Wind Demonstration Program rate; recovery of Program costs. (NRS 701B.005, 701B.590, 703.025)

     1.  A utility shall include with its annual deferred energy accounting adjustment application filed pursuant to subsection 11 of NRS 704.110 a revised Wind Demonstration Program rate. The rate must be calculated by adding the following two components:

     (a) A prospective rate determined by dividing not more than the total costs in the Wind Demonstration Program annual plan by the projected kilowatt-hours for the calendar year; and

     (b) A clearing rate determined by dividing the cumulative balance in the Wind Demonstration Program subaccount of FERC Account No. 182.3 at the end of the deferred energy test period as defined in NAC 704.063 by the test period kilowatt-hour sales.

     2.  The Commission will allow recovery of all prudent Wind Demonstration Program costs included in the subaccount of FERC Account No. 182.3 at the end of the test period as defined in NAC 704.063 and adjust the Wind Demonstration Program rate accordingly.

     (Added to NAC by Pub. Utilities Comm’n by R174-07, eff. 4-17-2008; A by R185-09, 4-20-2010; R076-11, 5-30-2012; R122-13, 2-26-2014)

      NAC 701B.500  Receipt of incentives established when application approved. (NRS 701B.005, 701B.590, 701B.615, 703.025)  A participant must receive the incentives established at the time that his or her application was approved if:

     1.  The incentives for a participant change between the time the application is approved and the time the wind energy system is completed; and

     2.  The participant completes installation of the wind energy system and submits a form to claim the incentive pursuant to subsection 6 of NAC 701B.510 not later than the expiration date listed on the notice issued pursuant to subsection 4 of NAC 701B.510.

     (Added to NAC by Pub. Utilities Comm’n by R174-07, eff. 4-17-2008; A by R185-09, 4-20-2010; R083-11, 5-30-2012; R025-12, 9-14-2012; R122-13, 2-26-2014)

      NAC 701B.505  Application for incentives; categories of host customers; establishment by Commission of rate of incentive payment; payment of incentives; proposal of incentive levels; assignment of portfolio energy credits. (NRS 701B.005, 701B.590, 703.025)

     1.  The utility shall offer to a host customer an incentive that is paid over a period of 5 years. The incentive must be based upon the metered production of electricity by the wind energy system. The total amount of the incentive paid to a host customer must not exceed 50 percent of the installed cost of the wind energy system of the host customer. A host customer or, pursuant to subsection 1 of NAC 701B.535, a system owner may apply for the incentive. The project site must be located in the service territory of the utility.

     2.  A host customer must, based upon the nature of the host customer, be designated as one of the following categories:

     (a) Public entity;

     (b) Low-income and nonprofit;

     (c) Residential and small commercial; or

     (d) Large commercial and industrial.

     3.  The rate of the incentive payment offered pursuant to subsection 1 must be established by the Commission in the proceeding to review the annual plan of a utility. The utility shall include in its first annual plan filed after February 26, 2014, proposed incentive levels for each category and a detailed procedure and schedule for the payment of incentives. The Commission may approve the proposed incentive levels, in whole or in part, or prescribe incentive levels other than those proposed by the utility. The utility may, in a subsequent annual plan, propose to modify any incentive level approved by the Commission pursuant to this subsection. The Commission may approve the proposed modification, in whole or in part, or prescribe an incentive level other than the incentive level proposed by the utility. In approving any incentive level or modification pursuant to this subsection, the Commission will ensure that the incentive level or modification is consistent with paragraph (b) of subsection 1 of NRS 701B.590.

     4.  A contract to receive an incentive payment offered pursuant to subsection 1 must not be executed on or after January 1, 2021. The contract must not provide for the payment of the incentive, or any portion thereof, after December 31, 2025. The incentive must be paid on a quarterly basis and must be paid directly to the host customer or third-party assignee of the host customer.

     5.  A wind energy system with a capacity of more than 500 kilowatts is not eligible to receive an incentive.

     6.  The utility shall not issue a reservation notice to a host customer if the incentive that would be paid under the notice would cause the incentive expenditure cap established pursuant to paragraph (b) of subsection 2 of NRS 701B.005 to be exceeded.

     7.  If a host customer installs a wind energy system that has greater kilowatt capacity than the number of kilowatts in its confirmed reservation, the host customer must receive the incentive level in its confirmed reservation for only the kilowatt capacity described in the confirmed reservation.

     8.  Portfolio energy credits generated by a host customer participating in the Program must be assigned to the utility pursuant to NRS 701B.640 and 704.775.

     9.  As used in this section:

     (a) “Low-income and nonprofit” means a category of host customer that is:

          (1) An entity that owns publicly subsidized housing;

          (2) A nonprofit corporation or other organization that qualifies as a tax-exempt organization pursuant to 26 U.S.C. § 501(c)(3);

          (3) An entity eligible for low-income housing credits pursuant to 26 U.S.C. § 42;

          (4) A person whose income does not exceed 80 percent of the median family income for the county in which the person resides, subject to an adjustment for any area with unusually high or low median incomes or housing costs; or

          (5) A Title I school.

     (b) “Public entity” means a category of host customer that is:

          (1) A department or agency of a state or local government;

          (2) A public school district;

          (3) An institute of higher education that is part of the Nevada System of Higher Education;

          (4) An Indian tribe or tribal organization; or

          (5) A corporation for public benefit.

     (c) “Title I school” has the meaning ascribed to it in NRS 385.3467.

     (Added to NAC by Pub. Utilities Comm’n by R185-09, eff. 4-20-2010; A by R122-13, 2-26-2014)

      NAC 701B.507  Provision of application to Commission. (NRS 701B.005, 701B.590, 703.025)  A utility shall provide to the Commission each application, including related materials, submitted by a host customer designated pursuant to NAC 701B.505 as a public entity, other than a corporation for public benefit or an Indian tribe or tribal organization. The application must be submitted to the Commission not later than 30 days after the application is approved and the issuance of a reservation notice. Confidential information, including, without limitation, personal identifying information, must be provided to the Commission pursuant to NAC 703.527 to 703.5282, inclusive.

     (Added to NAC by Pub. Utilities Comm’n by R122-13, eff. 2-26-2014)

      NAC 701B.510  Application for reservation; cancellation and resubmission of application; duties of utility and applicant; submission and contents of claim. (NRS 701B.005, 701B.590, 701B.615, 703.025)

     1.  An application for the reservation of an incentive must be made using a form approved by the Commission and must include, without limitation:

     (a) If the system owner is not the host customer, a copy of the executed agreement between the host customer and the system owner; and

     (b) Any documentation required by the utility which substantiates ownership of the equipment.

     2.  The utility shall provide on its Internet website, adjacent to the application forms, a best practices guide to selecting a contractor and other consumer resources, including, but not limited to, the current contact information for the State Contractors’ Board.

     3.  If an application is found to be incomplete or requires clarification, the utility shall request additional information. If the applicant has not submitted the requested information within 20 calendar days after receipt of the request, the application will be cancelled and the applicant may resubmit an application to the utility. The utility shall treat all resubmitted applications as new applications and process them in sequence with other new applications. Money for an incentive is not reserved until the utility receives all information and documentation required for the application and the project is approved.

     4.  The utility shall, within 30 days after receipt of an application, review the application for completeness and determine eligibility. Once the utility approves the application, the utility shall issue a notice confirming that a specific incentive amount is reserved for the project. The wind energy system must be installed and capable of producing electricity on or before the expiration date listed on the notice. The notice must list:

     (a) The maximum incentive amount that has been reserved for the project;

     (b) The approved kilowatt capacity of the project; and

     (c) An expiration date for the reservation, which must be 12 months after the date of the issuance of the notice.

     5.  To receive the full incentive available for the reservation, the applicant must complete the installation of the participating wind energy system and submit the form to claim the incentive required by subsection 6 not later than the expiration date listed on the notice issued pursuant to subsection 4.

     6.  To claim the incentive, the applicant must submit a form approved by the Commission to the utility after the wind energy system is installed and capable of producing electricity. The form must include, without limitation:

     (a) Signatures of the applicant, the host customer and the system owner, if different from the host customer;

     (b) Any supporting documentation deemed necessary by the Commission; and

     (c) Any documentation substantiating ownership of the equipment required by the utility.

     7.  To be eligible for an incentive, the tower site of the wind energy system must have an average annual wind speed at hub height of 10 miles per hour or greater.

     (Added to NAC by Pub. Utilities Comm’n by R185-09, eff. 4-20-2010; A by R025-12, 9-14-2012; R122-13, 2-26-2014)

      NAC 701B.513  Docket to include applications in public records of Commission. (NRS 701B.005, 701B.590, 703.025)  The Commission will, for each calendar year, open a docket in which to file applications received by a utility under the Program for the purpose of including such applications in the public records of the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R122-13, eff. 2-26-2014)

      NAC 701B.520  Prerequisites to payment of incentive; action on claim; rejection of project; reapplication for reservation of incentive. (NRS 701B.005, 701B.590, 701B.615, 703.025)

     1.  Once a project is completed, the applicant may request payment of the incentive amount listed on the confirmed reservation. A project is considered completed when it is completely installed, interconnected, permitted and capable of producing electricity in the manner and in the amounts for which it was designed.

     2.  To receive the incentive:

     (a) All requirements of the Program must be met;

     (b) A complete claim form must be submitted by the expiration date listed for the project on its confirmed reservation, including, without limitation, final itemized invoices of the cost of tangible materials and labor, and any documentation verifying the installed cost of the project pursuant to subsection 5 of NRS 701B.615;

     (c) The host customer must enter into a net metering agreement with the utility; and

     (d) If the host customer is designated pursuant to NAC 701B.505 as a public entity, other than a corporation for public benefit or an Indian tribe or tribal organization, the application for reservation of the incentive must include an attestation that the host customer has complied with all applicable provisions of chapters 338 and 701B of NRS.

     3.  If a claim form is incomplete or is found to require clarification, the utility shall request the information necessary to process that application further. If the applicant has not submitted the requested information within 20 calendar days after receipt of the request, the request for payment may be denied. If a claim form is not received by the expiration date for the project, or if the project is otherwise ineligible, the utility shall send a written notice to the applicant stating the reasons why the project is ineligible and that the project is rejected. If a project is rejected, the applicant or host customer may reapply for the reservation of an incentive but will be subject to the eligibility requirements, incentive levels and funding available at the time of reapplication.

     4.  As used in this section, “cost of tangible materials and labor” means the cost of materials and labor for permitting, generators, towers, inverters, the balance of system components and any other costs that are directly related to and required for the operation of a wind energy system. The term does not include such costs for improvements to a building or site which are necessary to accommodate a wind energy system.

     (Added to NAC by Pub. Utilities Comm’n by R185-09, eff. 4-20-2010; A by R122-13, 2-26-2014)

      NAC 701B.525  Withdrawal of host customer or system owner. (NRS 701B.005, 701B.590, 703.025)  The host customer or system owner may withdraw from the Program for any reason by providing written notice of withdrawal to the utility.

     (Added to NAC by Pub. Utilities Comm’n by R185-09, eff. 4-20-2010; A by R122-13, 2-26-2014)

      NAC 701B.530  Eligibility of participant who withdraws or forfeits incentive for wind energy system. (NRS 701B.590, 701B.615, 703.025)  A participant who withdraws or forfeits an incentive must reapply as a new applicant to be eligible for an incentive. The applicant must meet all requirements of the Program that are in effect at the time of reapplication.

     (Added to NAC by Pub. Utilities Comm’n by R185-09, eff. 4-20-2010; A by R025-12, 9-14-2012)

      NAC 701B.535  Rights of host customer; required party to agreement or contract with utility. (NRS 701B.005, 701B.590, 703.025)

     1.  The host customer may act as the applicant or system owner, may designate the applicant or system owner to act on his or her behalf and may change these designations at any time with prior written notice to the utility.

     2.  The host customer is the holder of the reservation of an incentive, must be a party to any agreement or contract with the utility and retains sole rights to the reservation.

     3.  If the host customer is not the system owner, the system owner must be a party to any agreement or contract with the utility.

     (Added to NAC by Pub. Utilities Comm’n by R185-09, eff. 4-20-2010; A by R122-13, 2-26-2014)

      NAC 701B.540  Location of wind energy system. (NRS 701B.590, 703.025)  For all program categories:

     1.  A wind energy system must be located on property within the Nevada service territory of a participating utility; and

     2.  An applicant must prove that his or her wind energy system has never been previously installed at another location.

     (Added to NAC by Pub. Utilities Comm’n by R174-07, eff. 4-17-2008; A by R185-09, 4-20-2010)

      NAC 701B.545  Verification of licensing of contractors involved in installation of wind energy system; suspension of contractor’s license during application process. (NRS 701B.005, 701B.590, 703.025)  In reviewing an application, a utility shall verify that any contractor involved in the installation of a wind energy system has an active license with the State Contractors’ Board. If the utility determines that a contractor’s license was suspended during the application process:

     1.  Reservations associated with the contractor will not be confirmed;

     2.  Applications associated with the contractor will be suspended;

     3.  No incentive payments will be made for wind energy systems associated with the contractor, except for wind energy systems which were interconnected before the suspension of the contractor’s license or unless the suspension is lifted not later than 30 days after the suspension;

     4.  The utility shall notify each party identified on the application of the suspension; and

     5.  If the wind energy system has not been installed, the host customer may hire a new contractor without losing the current reservation of an incentive.

     (Added to NAC by Pub. Utilities Comm’n by R185-09, eff. 4-20-2010; A by R122-13, 2-26-2014)

WATERPOWER ENERGY SYSTEMS DEMONSTRATION PROGRAM

General Provisions

      NAC 701B.600  Definitions. (NRS 701B.005, 701B.840, 703.025)  As used in NAC 701B.600 to 701B.720, inclusive, unless the context otherwise requires, the words and terms defined in NAC 701B.605 to 701B.655, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R173-07, eff. 4-17-2008; A by R186-09, 4-20-2010; R122-13, 2-26-2014)

      NAC 701B.605  “Applicant” defined. (NRS 701B.840, 703.025)  “Applicant” has the meaning ascribed to it in NRS 701B.720.

     (Added to NAC by Pub. Utilities Comm’n by R173-07, eff. 4-17-2008)

      NAC 701B.610  “Commission” defined. (NRS 701B.840, 703.025)  “Commission” has the meaning ascribed to it in NRS 701B.730.

     (Added to NAC by Pub. Utilities Comm’n by R173-07, eff. 4-17-2008)

      NAC 701B.613  “Corporation for public benefit” defined. (NRS 701B.005, 701B.840, 703.025)  “Corporation for public benefit” means a corporation that is organized for a public or charitable purpose and which upon dissolution must distribute its assets to the United States, a state, or a person which is recognized as exempt pursuant to 26 U.S.C. § 501(c)(3).

     (Added to NAC by Pub. Utilities Comm’n by R122-13, eff. 2-26-2014)

      NAC 701B.615  “Host customer” defined. (NRS 701B.840, 703.025)  “Host customer” means either the utility customer of record at the location where a waterpower energy system will be located or a person who has been designated by the utility customer of record in a letter to the utility explaining the relationship between that person and the utility customer of record.

     (Added to NAC by Pub. Utilities Comm’n by R186-09, eff. 4-20-2010)

      NAC 701B.620  “Participant” defined. (NRS 701B.840, 703.025)  “Participant” has the meaning ascribed to it in NRS 701B.740.

     (Added to NAC by Pub. Utilities Comm’n by R173-07, eff. 4-17-2008; A by R083-11, 5-30-2012)

      NAC 701B.630  “System owner” defined. (NRS 701B.840, 703.025)  “System owner” means the owner of the generating equipment at the time an incentive is paid. If a waterpower energy system is owned by a third party, the third party is the system owner.

     (Added to NAC by Pub. Utilities Comm’n by R186-09, eff. 4-20-2010)

      NAC 701B.635  “Utility” defined. (NRS 701B.840, 703.025)  “Utility” has the meaning ascribed to it in NRS 701B.780.

     (Added to NAC by Pub. Utilities Comm’n by R173-07, eff. 4-17-2008)

      NAC 701B.640  “Waterpower” defined. (NRS 701B.840, 703.025)  “Waterpower” has the meaning ascribed to it in NRS 701B.790.

     (Added to NAC by Pub. Utilities Comm’n by R173-07, eff. 4-17-2008)

      NAC 701B.645  “Waterpower Demonstration Program” and “Program” defined. (NRS 701B.840, 703.025)  “Waterpower Demonstration Program” or “Program” has the meaning ascribed to it in NRS 701B.810.

     (Added to NAC by Pub. Utilities Comm’n by R173-07, eff. 4-17-2008)

      NAC 701B.650  “Waterpower Demonstration Program rate” defined. (NRS 701B.840, 703.025)  “Waterpower Demonstration Program rate” means the rate established pursuant to NAC 701B.675.

     (Added to NAC by Pub. Utilities Comm’n by R173-07, eff. 4-17-2008)

      NAC 701B.655  “Waterpower energy system” defined. (NRS 701B.840, 703.025)  “Waterpower energy system” has the meaning ascribed to it in NRS 701B.800.

     (Added to NAC by Pub. Utilities Comm’n by R173-07, eff. 4-17-2008)

Administration of Program

      NAC 701B.660  Annual plan of utility: Filing and contents. (NRS 701B.005, 701B.840, 701B.850, 703.025)  Pursuant to NRS 701B.850, a utility shall file with the Commission an annual plan which must include the following:

     1.  A schedule describing major program milestones;

     2.  A budget with the following categories:

     (a) Contractor costs;

     (b) Marketing costs;

     (c) Training costs; and

     (d) Utility administrative costs;

     3.  A report on the activity of the Program during the immediately preceding calendar year and the current calendar year which includes, without limitation, the most up-to-date versions of the following information for each calendar year:

     (a) The number of applications filed;

     (b) The number of participants enrolled in the Waterpower Demonstration Program and the number who have dropped out of the Waterpower Demonstration Program;

     (c) The annual budget and expenditures;

     (d) Any remaining financial obligations at the end of a calendar year;

     (e) A list of completed installations;

     (f) A summary of marketing efforts;

     (g) A description of training and educational activities; and

     (h) The results of participant surveys;

     4.  A description of the application process, including, without limitation:

     (a) The procedures to be followed by the utility and the applicant;

     (b) The criteria for selection of applicants for the Waterpower Demonstration Program;

     (c) Copies of proposed applications and forms; and

     (d) The procedures for a participant to claim the incentive at completion of the project and a copy of the required claim form, which must include, at a minimum, the following data and attachments:

          (1) The name and address of the participant;

          (2) The address at which the waterpower energy system is located;

          (3) The technical description of the main components of the waterpower energy system, if different from the application;

          (4) An assignment of the incentive payment, if applicable;

          (5) A building permit approved and signed by the applicable governing jurisdiction to ensure that the waterpower energy system complies with all local codes;

          (6) A voltage verification form to ensure that the meter socket is ready for meter set; and

          (7) An invoice for the waterpower energy system to ensure that a properly licensed contractor performed the required work and that the waterpower energy system equipment is new and has not been previously installed;

     5.  The total of all incentives paid for the immediately preceding calendar year;

     6.  The total of all incentives projected to be paid for the calendar year, with subtotals for incentives paid for installed capacity, incentives projected to be paid for active reservations and incentives forecasted to be paid;

     7.  A detailed advertising plan;

     8.  An education and training plan;

     9.  An inspection and verification plan for waterpower energy systems which verifies that an applicant or participant meets all applicable requirements;

     10.  The average installed cost in Nevada of a waterpower energy system during the immediately preceding calendar year;

     11.  A graph and table showing the cumulative committed capacity and incurred incentive liability, separated into installed capacity and active reservations, at the end of each calendar year since the commencement of the Program;

     12.  A table demonstrating the effects of the Program on the rates paid by customers; and

     13.  A survey for participants which includes, without limitation, questions on:

     (a) The operational effectiveness of the participant’s waterpower energy system, including, without limitation, the total kilowatt-hours of electricity generated per calendar year; and

     (b) Any other information regarding the effectiveness of the Waterpower Demonstration Program.

     (Added to NAC by Pub. Utilities Comm’n by R173-07, eff. 4-17-2008; A by R186-09, 4-20-2010; R122-13, 2-26-2014)

      NAC 701B.665  Annual plan of utility: Approval by Commission. (NRS 701B.840, 701B.850, 703.025)  Not later than 150 days after the annual plan is filed pursuant to NAC 701B.660, the Commission will issue an order approving the annual plan with such modifications and upon such terms and conditions as the Commission finds necessary or appropriate to facilitate the Program.

     (Added to NAC by Pub. Utilities Comm’n by R173-07, eff. 4-17-2008)

      NAC 701B.670  Accounting for costs and revenues of utility; recovery of utility’s labor costs and overhead costs. (NRS 701B.840, 703.025)

     1.  All reasonable and prudent costs associated with carrying out and administering the Waterpower Demonstration Program must be accounted for in the books and records of a utility separately from amounts attributable to any other activity. The utility must account for the costs and revenues in the following manner:

     (a) Calculate, on a monthly basis, the costs incurred and revenues received in the Waterpower Demonstration Program since the end of the test period in its last proceeding to change the Waterpower Demonstration Program rate;

     (b) Record the cost of the Waterpower Demonstration Program in a separate subaccount of FERC Account No. 182.3 and record an offset in the appropriate subaccount of other FERC accounts;

     (c) Maintain subsidiary records of the subaccount of FERC Account No. 182.3 which must clearly delineate, without limitation, the incentives, contractor costs, marketing costs, training costs and utility administrative costs associated with the Waterpower Demonstration Program;

     (d) Record in the subaccount of FERC Account No. 182.3 the revenues attributable to the rate established pursuant to NAC 701B.675 to recover the Waterpower Demonstration Program cost; and

     (e) Apply a carrying charge at the rate of 1/12 of the authorized rate of return to the monthly ending balance in the subaccount of FERC Account No. 182.3.

     2.  The utility’s labor costs and overhead costs related to the Waterpower Demonstration Program must be recovered in a general rate case filing.

     (Added to NAC by Pub. Utilities Comm’n by R173-07, eff. 4-17-2008; A by R051-09, 1-28-2010)

      NAC 701B.675  Filing, calculation and adjustment of Waterpower Demonstration Program rate; recovery of Program costs. (NRS 701B.005, 701B.840, 703.025)

     1.  A utility shall include with its annual deferred energy accounting adjustment application filed pursuant to subsection 11 of NRS 704.110 a revised Waterpower Demonstration Program rate. The rate must be calculated by adding the following two components:

     (a) A prospective rate determined by dividing not more than the total costs in the Waterpower Demonstration Program annual plan by the projected kilowatt-hours for the calendar year; and

     (b) A clearing rate determined by dividing the cumulative balance in the Waterpower Demonstration Program subaccount of FERC Account No. 182.3 at the end of the deferred energy test period as defined in NAC 704.063 by the test period kilowatt-hour sales.

     2.  The Commission will allow recovery of all prudent Waterpower Demonstration Program costs included in the subaccount of FERC Account No. 182.3 at the end of the test period as defined in NAC 704.063 and adjust the Waterpower Demonstration Program rate accordingly.

     (Added to NAC by Pub. Utilities Comm’n by R173-07, eff. 4-17-2008; A by R186-09, 4-20-2010; R076-11, 5-30-2012; R122-13, 2-26-2014)

      NAC 701B.680  Receipt of incentives established when application approved. (NRS 701B.005, 701B.840, 703.025)  If the incentives for a participant’s first calendar year change between the time his or her application is approved and the time the waterpower energy system is completed, the participant must receive for that calendar year the incentives established at the time that the application was approved.

     (Added to NAC by Pub. Utilities Comm’n by R173-07, eff. 4-17-2008; A by R186-09, 4-20-2010; R083-11, 5-30-2012; R122-13, 2-26-2014)

      NAC 701B.685  Application for incentives; categories of host customers; establishment by Commission of rate of incentive payment; payment of incentives; proposal of incentive levels; assignment of portfolio energy credits. (NRS 701B.005, 701B.840, 703.025)

     1.  The utility shall offer to a host customer an incentive that is paid over a period of 5 years. The incentive must be based upon the metered production of electricity by the waterpower energy system. The total amount of the incentive paid to a host customer must not exceed 50 percent of the installed cost of the waterpower energy system of the host customer. Any customer of a utility that receives retail electric service from the utility may apply for an incentive. A host customer may apply for the incentive or a system owner may apply for the incentive. The project site must be located in the service territory of the utility.

     2.   A host customer must, based upon the nature of the host customer, be designated as one of the following categories:

     (a) Public entity;

     (b) Low-income and nonprofit;

     (c) Residential and small commercial; or

     (d) Large commercial and industrial.

     3.  The rate of the incentive payment offered pursuant to subsection 1 must be established by the Commission in the proceeding to review the annual plan of a utility. The utility shall include in its first annual plan filed after February 26, 2014, proposed incentive levels for each category and a detailed procedure and schedule for the payment of incentives. The Commission may approve the proposed incentive levels, in whole or in part, or prescribe incentive levels other than those proposed by the utility. The utility may, in a subsequent annual plan, propose to modify any incentive level approved by the Commission pursuant to this subsection. The Commission may approve the proposed modification, in whole or in part, or prescribe an incentive level other than the incentive level proposed by the utility.

     4.  A contract to receive an incentive paid over a period of 5 years executed pursuant to this section must not be executed on or after January 1, 2021. The contract must not provide for the payment of the incentive, or any portion thereof, after December 31, 2025. The incentive must be paid on a quarterly basis and must be paid directly to the host customer or third-party assignee of the host customer.

     5.  The utility shall not issue a reservation notice to a host customer if the incentive that would be paid under the notice would cause the incentive expenditure cap established pursuant to paragraph (b) of subsection 2 of NRS 701B.005 to be exceeded.

     6.  A waterpower energy system with a capacity of more than 500 kilowatts is not eligible to receive an incentive.

     7.  If a host customer installs a waterpower energy system that has greater kilowatt capacity than the amount of kilowatts in its confirmed reservation, the host customer must receive the incentive level in its confirmed reservation for only the kilowatt capacity described in the confirmed reservation.

     8.  Portfolio energy credits generated by a host customer participating in the Program must be assigned to the utility pursuant to NRS 701B.870 and 704.775.

     9.  As used in this section:

     (a) “Low-income and nonprofit” means a category of host customer that is:

          (1) An entity that owns publicly subsidized housing;

          (2) A nonprofit corporation or other organization that qualifies as a tax-exempt organization pursuant to 26 U.S.C. § 501(c)(3);

          (3) An entity eligible for low-income housing credits pursuant to 26 U.S.C. § 42;

          (4) A person whose income does not exceed 80 percent of the median family income for the county in which the person resides, subject to an adjustment for any area with unusually high or low median incomes or housing costs; or

          (5) A Title I school.

     (b) “Public entity” means a category of host customer that is:

          (1) A department or agency of a state or local government;

          (2) A public school district;

          (3) An institute of higher education that is part of the Nevada System of Higher Education;

          (4) An Indian tribe or tribal organization; or

          (5) A corporation for public benefit.

     (c) “Title I school” has the meaning ascribed to it in NRS 385.3467.

     (Added to NAC by Pub. Utilities Comm’n by R186-09, eff. 4-20-2010; A by R122-13, 2-26-2014)

      NAC 701B.687  Provision of application to Commission. (NRS 701B.005, 701B.840, 703.025)  A utility shall provide to the Commission each application, including related materials, submitted by a host customer designated pursuant to NAC 701B.685 as a public entity, other than a corporation for public benefit or an Indian tribe or tribal organization. The application must be submitted to the Commission not later than 30 days after the application is approved and the issuance of a reservation notice. Confidential information, including, without limitation, personal identifying information, must be provided to the Commission pursuant to NAC 703.527 to 703.5282, inclusive.

     (Added to NAC by Pub. Utilities Comm’n by R122-13, eff. 2-26-2014)

      NAC 701B.690  Participation in Program: Application for reservation of incentive; cancellation and resubmission of application; duties of utility and applicant; claim for incentive. (NRS 701B.005, 701B.820, 701B.840, 703.025)  For all categories:

     1.  An application for the reservation of an incentive must be made using a form approved by the Commission and must include, without limitation:

     (a) If the system owner is not the host customer, a copy of the executed agreement between the host customer and the system owner;

     (b) A computation stamped by a professional engineer licensed in this State that provides the estimated hours of operation of the waterpower energy system and the estimated annual kilowatt-hour output of the proposed waterpower energy system; and

     (c) Any documentation required by the utility which substantiates ownership of the equipment.

     2.  The utility shall provide on its Internet website, adjacent to the application forms, a best practices guide to selecting a contractor and other consumer resources, including, but not limited to, the current contact information for the State Contractors’ Board.

     3.  If an application is found to be incomplete or requires clarification, the utility shall request additional information. If the applicant has not submitted the requested information within 20 calendar days after receipt of the request, the application will be cancelled, and the applicant may resubmit an application to the utility. The utility shall treat all resubmitted applications as new applications and process them in sequence with other new applications. Money for an incentive is not reserved until the utility receives all information and documentation required for the application and the project is approved.

     4.  The utility shall, within 30 days after receipt of an application, review the application for completeness and determine eligibility. Once the utility approves the application, the utility shall issue a notice confirming that a maximum incentive amount is reserved for the project. The waterpower energy system must be installed and capable of producing electricity on or before the expiration date listed on the notice. The notice must list:

     (a) The incentive amount that has been reserved for the project;

     (b) The approved kilowatt capacity of the project; and

     (c) An expiration date for the reservation, which must be 12 months after the date of the issuance of the notice.

     5.  The applicant must complete the installation of a waterpower energy system not later than the expiration date listed on the notice issued pursuant to subsection 4.

     6.  To claim the incentive, the applicant must submit a form approved by the Commission to the utility after the waterpower energy system is installed and capable of producing electricity. The form must include, without limitation:

     (a) Signatures of the applicant, the host customer and the system owner, if different from the host customer;

     (b) Any supporting documentation deemed necessary by the Commission;

     (c) Any documentation substantiating ownership of the equipment required by the utility; and

     (d) Any documentation substantiating that the host customer has entered into a net metering agreement with the utility.

     (Added to NAC by Pub. Utilities Comm’n by R186-09, eff. 4-20-2010; A by R122-13, 2-26-2014)

      NAC 701B.693  Docket to include applications in public records of Commission. (NRS 701B.005, 701B.840, 703.025)  The Commission will, for each calendar year, open a docket in which to file applications received by a utility under the Program for the purpose of including such applications in the public records of the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R122-13, eff. 2-26-2014)

      NAC 701B.695  Prerequisites to payment of incentive; action on claim; rejection of project; reapplication for reservation of incentive. (NRS 701B.005, 701B.840, 703.025)

     1.  Once a project is completed, the applicant may request payment of the incentive listed on the confirmed reservation. A project is considered completed when it is completely installed, interconnected, permitted and capable of producing electricity in the manner and in the amounts for which it was designed.

     2.  To receive the incentive:

     (a) All requirements of the Program must be met;

     (b) A complete claim form must be submitted before the expiration date listed for the project on its confirmed reservation, including, without limitation, final itemized invoices of the cost of tangible materials and labor, and any documentation verifying the installed cost of the project pursuant to subsection 5 of NRS 701B.615;

     (c) The host customer must enter into a net metering agreement with the utility; and

     (d) If the host customer is designated pursuant to NAC 701B.685 as a public entity, other than a corporation for public benefit or an Indian tribe or tribal organization, the application for reservation of the incentive must include an attestation that the host customer has complied with all applicable provisions of chapters 338 and 701B of NRS.

     3.  If a claim form is incomplete or is found to require clarification, the utility shall request the information necessary to process that application further. If the applicant has not submitted the requested information within 20 calendar days after receipt of the request, the request for payment may be denied. If a claim form is not received by the expiration date for the project, or if the project is otherwise ineligible, the utility shall send a written notice to the applicant stating the reasons why the project is ineligible and that the project is rejected. If a project is rejected, the applicant or host customer may reapply for the reservation of an incentive but will be subject to the eligibility requirements, incentive levels and funding available at the time of reapplication.

     4.  As used in this section, “cost of tangible materials and labor” means the cost of materials and labor for permitting, generators, towers, inverters, the balance of system components and any other costs that are directly related to and required for the operation of a waterpower energy system. The term does not include such costs for improvements to a building or site which are necessary to accommodate a waterpower energy system.

     (Added to NAC by Pub. Utilities Comm’n by R186-09, eff. 4-20-2010; A by R122-13, 2-26-2014)

      NAC 701B.700  Withdrawal of host customer or system owner; preservation of reservation after withdrawal; application for new reservation. (NRS 701B.840, 703.025)

     1.  The host customer or system owner may withdraw from the Program for any reason by providing written notice of withdrawal to the utility.

     2.  The host customer retains sole rights to the reservation for 30 days after submitting notice of withdrawal and may preserve the reservation beyond 30 days by submitting a revised application for a reservation to the utility before the expiration of the 30 days. The host customer may not increase the incentive amount in the original reservation.

     3.  If the host customer does not resubmit an application for a reservation within 30 days after withdrawal from the Program, the original application will be terminated in its entirety and any previously reserved incentive money will be released. The host customer may apply for a new reservation of an incentive if the host customer still wishes to participate in the Program.

     (Added to NAC by Pub. Utilities Comm’n by R186-09, eff. 4-20-2010)

      NAC 701B.705  Eligibility of participant who withdraws or does not complete installation of waterpower energy system. (NRS 701B.840, 703.025)  A participant who withdraws or who does not complete the installation of his or her waterpower energy system within 12 months after the date on which the applicant is selected to participate in the Program must reapply as a new applicant to be eligible for an incentive. The applicant must meet all requirements of the Program that are in effect at the time of reapplication.

     (Added to NAC by Pub. Utilities Comm’n by R186-09, eff. 4-20-2010)

      NAC 701B.710  Rights of host customer; required party to agreement or contract with utility. (NRS 701B.840, 703.025)

     1.  The host customer may act as the applicant or system owner, may designate the applicant or system owner to act on his or her behalf and may change these designations at any time with prior written notice to the utility.

     2.  The host customer is the holder of the reservation of an incentive, must be a party to any agreement or contract with the utility and retains sole rights to the reservation except as otherwise provided in subsections 2 and 3 of NAC 701B.700.

     3.  If the host customer is not the system owner, the system owner must be a party to any agreement or contract with the utility.

     (Added to NAC by Pub. Utilities Comm’n by R186-09, eff. 4-20-2010)

      NAC 701B.715  Location of waterpower energy system. (NRS 701B.840, 703.025)

     1.  A waterpower energy system must be located on property within the Nevada service territory of a participating utility.

     2.  An applicant must prove that his or her waterpower energy system has never been previously installed at another location.

     (Added to NAC by Pub. Utilities Comm’n by R173-07, eff. 4-17-2008; A by R186-09, 4-20-2010)

      NAC 701B.720  Verification of licensing of contractors involved in installation of waterpower energy system; suspension of contractor’s license during application process. (NRS 701B.005, 701B.840, 703.025)  In reviewing an application, a utility shall verify that any contractor involved in the installation of a waterpower energy system has an active license with the State Contractors’ Board. If the utility determines that a contractor’s license was suspended during the application process:

     1.  Reservations associated with the contractor will not be confirmed;

     2.  Applications associated with the contractor will be suspended;

     3.  No incentive payments will be made for waterpower energy systems associated with the contractor, except for waterpower energy systems which were interconnected before the suspension of the contractor’s license or unless the suspension is lifted not later than 30 days after the suspension;

     4.  The utility shall notify each party identified on the application of the suspension; and

     5.  If the waterpower energy system has not been installed, the host customer may hire a new contractor without losing the current reservation of an incentive.

     (Added to NAC by Pub. Utilities Comm’n by R186-09, eff. 4-20-2010; A by R122-13, 2-26-2014)