Assembly Bill No. 314–Assemblymen Geddes, Hardy, Leslie, Andonov, Angle, Atkinson, Christensen, Claborn, Collins, Conklin, Giunchigliani, Goicoechea, Goldwater, Horne, Mabey, Manendo, Oceguera and Pierce

 

March 13, 2003

____________

 

Joint Sponsor: Senator Townsend

____________

 

Referred to Concurrent Committees on Commerce
and Labor and Ways and Means

 

SUMMARY—Revises provisions relating to generation, reduction and conservation of energy. (BDR 58‑797)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: Yes.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to energy; requiring certain public utilities to establish a program for the purchase and installation of equipment for renewable energy for its residential customers; establishing a program which provides loans to owners of homes and small businesses in this state for the purchase of equipment to reduce and conserve energy; revising the definition of “renewable energy” for the purposes of optional pricing, net metering and establishing a portfolio standard for renewable energy; revising the definition of “net metering system” for the purposes of revising the requirements for generating capacity and customer load of net metering systems; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

 

2-1  Section 1. Chapter 701 of NRS is hereby amended by adding

2-2  thereto the provisions set forth as sections 2 to 9, inclusive, of this

2-3  act.

2-4  Sec. 2. The Legislature hereby declares that the purpose of

2-5  sections 2 to 9, inclusive, of this act is to benefit the general

2-6  welfare of the residents of this state by providing loans to owners

2-7  of homes and small businesses in this state for the purchase of

2-8  equipment to reduce and conserve energy, and finds that this

2-9  purpose is a charitable purpose within the meaning of Section 9 of

2-10  Article 8 of the Constitution of the State of Nevada.

2-11      Sec. 3.  As used in sections 2 to 9, inclusive, of this act, unless

2-12  the context otherwise requires, the words and terms defined in

2-13  sections 4, 5 and 6 of this act have the meanings ascribed to them

2-14  in those sections.

2-15      Sec. 4.  “Corporation for public benefit” has the meaning

2-16  ascribed to it in NRS 82.021.

2-17      Sec. 5.  “Home” means a structure used primarily for

2-18  residential purposes and includes, without limitation:

2-19      1.  A single-family dwelling;

2-20      2.  A unit in a multiple-family structure;

2-21      3.  A mobile home; and

2-22      4.  The common elements of a common-interest community,

2-23  as defined in NRS 116.110318 and any appurtenance to the

2-24  common elements.

2-25      Sec. 6.  “Small business” means a business conducted for

2-26  profit which employs fewer than 20 full-time or part-time

2-27  employees.

2-28      Sec. 7.  1.  The Director shall cause to be created in this

2-29  state a corporation for public benefit to provide loans to owners of

2-30  homes and small businesses in this state for the purchase of

2-31  equipment to reduce and conserve energy.

2-32      2.  A loan must be for a period of not less than 3 years and not

2-33  more than 10 years. The annual rate of interest is 1.99 percent.

2-34      Sec. 8. 1.  The Director may apply for any available grants

2-35  and accept any gifts, grants or donations of money or other type of

2-36  assistance that becomes available to carry out the provisions of

2-37  sections 2 to 9, inclusive, of this act.

2-38      2.  All money the Director receives pursuant to paragraph (b)

2-39  of subsection 4 of NRS 702.170 and sections 2 to 9, inclusive, of

2-40  this act:

2-41      (a) Must be deposited in the State Treasury and accounted for

2-42  separately in the State General Fund;

2-43      (b) Must be used only to carry out the provisions of sections 2

2-44  to 9, inclusive, of this act; and

3-1  (c) Does not revert to the State General Fund at the end of any

3-2  fiscal year.

3-3  3.  The Director shall administer the account. Any interest or

3-4  income earned on the money in the account must be credited to

3-5  the account. Any claims against the account must be paid as other

3-6  claims against the State are paid.

3-7  Sec. 9.  The Director shall:

3-8  1.  Adopt such regulations as he deems necessary to carry out

3-9  the provisions of sections 2 to 9, inclusive, of this act, including,

3-10  without limitation, regulations which prescribe the requirements

3-11  concerning eligibility for and use of the money loaned by the

3-12  corporation for public benefit pursuant to section 7 of this act for

3-13  the purchasing of equipment to reduce and conserve energy.

3-14      2.  Provide the corporation for public benefit created pursuant

3-15  to section 7 of this act with such assistance as is necessary to carry

3-16  out the provisions of sections 2 to 9, inclusive, of this act and

3-17  comply with the regulations adopted pursuant to this section.

3-18      Sec. 10.  NRS 701.180 is hereby amended to read as follows:

3-19      701.180  The Director shall:

3-20      1.  Acquire and analyze information relating to energy and to

3-21  the supply, demand and conservation of its sources.

3-22      2.  Utilize all available public and private means to provide

3-23  information to the public about problems relating to energy and to

3-24  explain how conservation of energy and its sources may be

3-25  accomplished.

3-26      3.  Review and evaluate information which identifies trends and

3-27  permits forecasting of the energy available to the State. Such

3-28  forecasts must include estimates on:

3-29      (a) The level of demand for energy in the State for 5-, 10- and

3-30  20-year periods;

3-31      (b) The amount of energy available to meet each level of

3-32  demand;

3-33      (c) The probable implications of the forecast on the demand and

3-34  supply of energy; and

3-35      (d) The sources of renewable energy and other alternative

3-36  sources of energy which are available and their possible effects.

3-37      4.  Study means of reducing wasteful, inefficient, unnecessary

3-38  or uneconomical uses of energy and encourage the maximum

3-39  utilization of existing sources of energy in the State.

3-40      5.  Encourage the development of:

3-41      (a) Any sources of renewable energy and any other energy

3-42  projects which will benefit the State; and

3-43      (b) Any measures which conserve or reduce the demand for

3-44  energy or which result in more efficient use of energy.

4-1  6.  In conjunction with the Desert Research Institute, review

4-2  policies relating to the research and development of the State’s

4-3  geothermal resources and make recommendations to the appropriate

4-4  state and federal agencies for establishing methods of developing

4-5  the geothermal resources within the State.

4-6  7.  Solicit and serve as the point of contact for grants and other

4-7  money from the Federal Government and other sources to promote:

4-8  (a) Energy projects that enhance the economic development of

4-9  the State;

4-10      (b) The use of renewable energy; and

4-11      (c) The use of measures which conserve or reduce the demand

4-12  for energy or which result in more efficient use of energy.

4-13      8.  Coordinate the activities and programs of the Office of

4-14  Energy with the activities and programs of the Task Force, the

4-15  Consumer’s Advocate and the Public Utilities Commission of

4-16  Nevada and other federal, state and local officers and agencies that

4-17  promote, fund, administer or operate activities and programs related

4-18  to the use of renewable energy and the use of measures which

4-19  conserve or reduce the demand for energy or which result in more

4-20  efficient use of energy.

4-21      9.  Carry out the provisions of sections 2 to 9, inclusive, of this

4-22  act.

4-23      10.  Carry out all other directives concerning energy that are

4-24  prescribed by the Governor.

4-25      Sec. 11.  NRS 702.170 is hereby amended to read as follows:

4-26      702.170  1.  The Commission shall adopt regulations to carry

4-27  out and enforce the provisions of NRS 702.160. Such regulations

4-28  may require public utilities, municipal utilities and retail customers

4-29  that are required to collect or remit money for the universal energy

4-30  charge to file reports and to provide the Commission with

4-31  information relating to compliance with the requirements of the

4-32  universal energy charge.

4-33      2.  In carrying out the provisions of NRS 702.160, the

4-34  Commission shall solicit advice from the Consumer’s Advocate of

4-35  the Bureau of Consumer Protection in the Office of the Attorney

4-36  General, public utilities and municipal utilities and other

4-37  knowledgeable persons.

4-38      3.  The Commission may conduct audits and investigations of

4-39  public utilities, municipal utilities and retail customers that are

4-40  required to collect or remit money for the universal energy charge, if

4-41  the Commission determines that such audits and investigations are

4-42  necessary to verify compliance with the requirements of the

4-43  universal energy charge. In conducting such audits and

4-44  investigations, the Commission may exercise any of the

4-45  investigative powers granted to the Commission pursuant to chapter

5-1  703 of NRS, including, without limitation, the power to issue orders

5-2  to compel the appearance of witnesses and the production of books,

5-3  accounts, papers and records.

5-4  4.  To carry out its powers and duties pursuant to this chapter,

5-5  the Commission is entitled to an administrative charge of not more

5-6  than 3 percent of the money collected for the universal energy

5-7  charge. After deduction of its administrative charge, the

5-8  Commission shall deposit the remaining money collected for the

5-9  universal energy charge in the following manner:

5-10      (a) Seventy-five percent must be deposited in the State Treasury

5-11  for credit to the Fund[.] ; and

5-12      (b) Twenty-five percent must deposited in the State Treasury

5-13  for credit to the account established for the corporation for public

5-14  benefit created pursuant to section 7 of this act.

5-15      5.  The Commission may bring an appropriate action in its own

5-16  name for recovery of any money that a person fails to pay, collect or

5-17  remit in violation of the requirements of the universal energy

5-18  charge.

5-19      Sec. 12.  Chapter 704 of NRS is hereby amended by adding

5-20  thereto a new section to read as follows:

5-21      1.  Each utility shall establish a program for the purchase and

5-22  installation of equipment for renewable energy in the homes of its

5-23  residential customers in this state.

5-24      2.  The Commission shall adopt regulations to carry out the

5-25  provisions of this section. The regulations must prescribe:

5-26      (a) The terms and conditions of the contract entered into by

5-27  the utility and a customer for the purchase and installation of

5-28  equipment for renewable energy in the home of the customer;

5-29      (b) The type of equipment for renewable energy that may be

5-30  purchased and installed in the home of a customer; and

5-31      (c) Any other requirements the Commission considers

5-32  necessary to carry out the provisions of this section.

5-33      3.  As used in this section:

5-34      (a) “Renewable energy” has the meaning ascribed to it in

5-35  NRS 704.7811.

5-36      (b) “Utility” means a public utility which supplies electricity in

5-37  this state.

5-38      Sec. 13.  NRS 704.763 is hereby amended to read as follows:

5-39      704.763  1.  On and after October 1, 2001, each electric utility

5-40  shall disclose to its retail customers information about electric

5-41  services, and any products and services relating thereto, that are

5-42  being provided to or purchased for those retail customers by the

5-43  electric utility. The disclosure must:

5-44      (a) Be in a standard, uniform format established by the

5-45  Commission by regulation;

6-1  (b) Be included:

6-2       (1) [At least two times each calendar year, as] As an insert in

6-3  the bills that the electric utility sends monthly to its retail customers;

6-4  and

6-5       (2) If the electric utility maintains a website on the Internet

6-6  or any successor to the Internet, on that website; and

6-7  (c) Include adequate information so that a retail customer can

6-8  readily evaluate his options for obtaining electric services or any

6-9  products or services relating thereto[.] , including, without

6-10  limitation, net metering systems and renewable energy.

6-11      2.  A disclosure required by this section must include, if

6-12  applicable:

6-13      (a) The average mix of energy sources used to generate the

6-14  electricity sold by the electric utility to the retail customer. An

6-15  electric utility may, if available, use a regional average that has been

6-16  determined by the Commission for that portion of electricity sold by

6-17  the electric utility to the retail customer for which the specific mix

6-18  of energy sources cannot be discerned.

6-19      (b) The average emissions, measured in pounds per megawatt-

6-20  hour, of:

6-21          (1) Any high-level radioactive waste, sulfur dioxide, carbon

6-22  dioxide, oxides of nitrogen and heavy metals released in this state

6-23  from the generation of the electricity sold by the electric utility to

6-24  the retail customer; and

6-25          (2) Any other substances released in this state from the

6-26  generation of the electricity sold by the electric utility to the retail

6-27  customer which the Commission, in cooperation with the Division

6-28  of Environmental Protection of the State Department of

6-29  Conservation and Natural Resources, determines may cause a

6-30  significant health or environmental impact and for which

6-31  sufficiently accurate and reliable data is available.

6-32  If an electric utility uses a regional average for the mix of energy

6-33  sources pursuant to paragraph (a), the electric utility shall, if

6-34  available, use for the average emissions pursuant to this paragraph a

6-35  regional calculation that has been determined by the Commission.

6-36      (c) Information concerning customer service.

6-37      (d) Information concerning any energy programs that provide

6-38  assistance to retail customers with low incomes, including, without

6-39  limitation, information on the procedures to apply for such

6-40  programs.

6-41      3.  An electric utility:

6-42      (a) Shall make the disclosures required pursuant to this section

6-43  in accordance with the requirements adopted by the Commission as

6-44  to form and substance; and

7-1  (b) Shall ensure that it provides the information in compliance

7-2  with all applicable state and federal laws governing unfair

7-3  advertising and labeling.

7-4  4.  The Commission shall adopt such regulations concerning

7-5  form and substance for the disclosures required by this section as are

7-6  necessary to ensure that retail customers are provided with sufficient

7-7  information so that they can readily evaluate their options for

7-8  obtaining electric services , and any products and services relating

7-9  thereto.

7-10      5.  The provisions of this section do not require an electric

7-11  utility to disclose to its retail customers any information about

7-12  electric services, and any products and services relating thereto, that

7-13  are subject to the provisions of chapter 704B of NRS.

7-14      6.  As used in this section:

7-15      (a) “Electric utility” has the meaning ascribed to it in

7-16  NRS 704.187.

7-17      (b) “Energy source” includes, without limitation:

7-18          (1) Coal, natural gas, oil, propane and any other fossil fuel;

7-19          (2) Geothermal energy, solar energy, hydroelectric energy,

7-20  nuclear energy, wind, biofuel and biomass; and

7-21          (3) Any other specific energy source that is used to generate

7-22  the electricity provided to the retail customer.

7-23      Sec. 14.  NRS 704.771 is hereby amended to read as follows:

7-24      704.771  “Net metering system” means a facility or energy

7-25  system for the generation of electricity that:

7-26      1.  Uses renewable energy as its primary source of energy to

7-27  generate electricity;

7-28      2.  Has a generating capacity and customer load of not more

7-29  than [10] 100 kilowatts;

7-30      3.  Is located on the customer-generator’s premises;

7-31      4.  Operates in parallel with the utility’s transmission and

7-32  distribution facilities; and

7-33      5.  Is intended primarily to offset part or all of the customer-

7-34  generator’s requirements for electricity.

7-35      Sec. 15.  NRS 704.7811 is hereby amended to read as follows:

7-36      704.7811  1.  “Renewable energy” means:

7-37      (a) Biomass;

7-38      (b) Geothermal energy;

7-39      (c) Solar energy; [and]

7-40      (d) Wind[.] ; and

7-41      (e) Waterpower created without the use of a dam.

7-42      2.  The term does not include coal, natural gas, oil, propane or

7-43  any other fossil fuel, or nuclear energy.

 

 

8-1  Sec. 16.  NRS 704.7815 is hereby amended to read as follows:

8-2  704.7815  “Renewable energy system” means:

8-3  1.  A facility or energy system that:

8-4  (a) Uses renewable energy to generate electricity; and

8-5  (b) Transmits or distributes the electricity that it generates from

8-6  renewable energy via:

8-7       (1) A power line which is dedicated to the transmission or

8-8  distribution of electricity generated from renewable energy and

8-9  which is connected to a facility or system owned, operated or

8-10  controlled by a provider of electric service; or

8-11          (2) A power line which is shared with not more than one

8-12  facility or energy system generating electricity from nonrenewable

8-13  energy and which is connected to a facility or system owned,

8-14  operated or controlled by a provider of electric service.

8-15      2.  A solar [thermal] energy system that reduces the

8-16  consumption of electricity.

8-17      3.  A net metering system used by a customer-generator

8-18  pursuant to NRS 704.766 to 704.775, inclusive.

8-19      Sec. 17.  NRS 704.7821 is hereby amended to read as follows:

8-20      704.7821  1.  For each provider of electric service, the

8-21  Commission shall establish a portfolio standard for renewable

8-22  energy. The portfolio standard must require each provider to

8-23  generate or acquire electricity from renewable energy systems in an

8-24  amount that is:

8-25      (a) For calendar years 2003 and 2004, not less than 5 percent of

8-26  the total amount of electricity sold by the provider to its retail

8-27  customers in this state during that calendar year.

8-28      (b) For calendar years 2005 and 2006, not less than 7 percent of

8-29  the total amount of electricity sold by the provider to its retail

8-30  customers in this state during that calendar year.

8-31      (c) For calendar years 2007 and 2008, not less than 9 percent of

8-32  the total amount of electricity sold by the provider to its retail

8-33  customers in this state during that calendar year.

8-34      (d) For calendar years 2009 and 2010, not less than 11 percent

8-35  of the total amount of electricity sold by the provider to its retail

8-36  customers in this state during that calendar year.

8-37      (e) For calendar years 2011 and 2012, not less than 13 percent

8-38  of the total amount of electricity sold by the provider to its retail

8-39  customers in this state during that calendar year.

8-40      (f) For calendar year 2013 and for each calendar year thereafter,

8-41  not less than 15 percent of the total amount of electricity sold by the

8-42  provider to its retail customers in this state during that calendar year.

8-43      2.  In addition to the requirements set forth in subsection 1, the

8-44  portfolio standard for each provider must require that:

9-1  (a) Of the total amount of electricity that the provider is required

9-2  to generate or acquire from renewable energy systems during each

9-3  calendar year, not less than 5 percent of that amount must be

9-4  generated or acquired from solar renewable energy systems.

9-5  (b) If the provider acquires electricity from a renewable energy

9-6  system pursuant to a renewable energy contract with another party:

9-7       (1) The term of the renewable energy contract must be not

9-8  less than 10 years, unless the other party agrees to a renewable

9-9  energy contract with a shorter term; and

9-10          (2) The terms and conditions of the renewable energy

9-11  contract must be just and reasonable, as determined by the

9-12  Commission. If the provider is a public utility and the Commission

9-13  approves the terms and conditions of the renewable energy contract

9-14  between the provider and the other party, the renewable energy

9-15  contract and its terms and conditions shall be deemed to be a

9-16  prudent investment and the provider may recover all just and

9-17  reasonable costs associated with the renewable energy contract.

9-18      3.  If, for the benefit of one or more of its retail customers in

9-19  this state, the provider has subsidized, in whole or in part, the

9-20  acquisition or installation of a solar [thermal] energy system which

9-21  qualifies as a renewable energy system and which reduces the

9-22  consumption of electricity, the total reduction in the consumption of

9-23  electricity during each calendar year that results from the solar

9-24  [thermal] energy system shall be deemed to be electricity that the

9-25  provider generated or acquired from a renewable energy system for

9-26  the purposes of complying with its portfolio standard.

9-27      4.  The Commission may adopt regulations that establish a

9-28  system of renewable energy credits that may be used by a provider

9-29  to comply with its portfolio standard.

9-30      5.  Except as otherwise provided in subsection 6, each provider

9-31  shall comply with its portfolio standard during each calendar year.

9-32      6.  If, for any calendar year, a provider is unable to comply with

9-33  its portfolio standard through the generation of electricity from its

9-34  own renewable energy systems or, if applicable, through the use of

9-35  renewable energy credits, the provider shall take actions to acquire

9-36  electricity pursuant to one or more renewable energy contracts. If

9-37  the Commission determines that, for a calendar year, there is not or

9-38  will not be a sufficient supply of electricity made available to the

9-39  provider pursuant to renewable energy contracts with just and

9-40  reasonable terms and conditions, the Commission shall exempt the

9-41  provider, for that calendar year, from the remaining requirements of

9-42  its portfolio standard or from any appropriate portion thereof, as

9-43  determined by the Commission.

9-44      7.  The Commission shall adopt regulations for the

9-45  determination of just and reasonable terms and conditions for the

10-1  renewable energy contracts that a provider of electric service must

10-2  enter into to comply with its portfolio standard.

10-3      8.  As used in this section:

10-4      (a) “Renewable energy contract” means a contract to acquire

10-5  electricity from one or more renewable energy systems owned,

10-6  operated or controlled by other parties.

10-7      (b) “Terms and conditions” includes, without limitation, the

10-8  price that a provider of electric service must pay to acquire

10-9  electricity pursuant to a renewable energy contract.

10-10     Sec. 18.  Section 3 of chapter 330, Statutes of Nevada 2001, at

10-11  page 1538, is hereby amended to read as follows:

10-12     Sec. 3. 1.  This section [become] becomes effective on

10-13  July 1, 2001.

10-14     2.  Sections 1 and 2 of this act become effective on

10-15  July 1, 2001, for the purpose of adopting regulations and on

10-16  January 1, 2002, for all other purposes.

10-17     3.  This act expires by limitation on June 30, [2003.]

10-18  2013.

10-19     Sec. 19.  1.  This section and section 18 of this act become

10-20  effective upon passage and approval.

10-21     2.  Sections 1 to 17, inclusive, of this act become effective on

10-22  October 1, 2003.

 

10-23  H