Assembly Bill No. 431–Assemblywoman Giunchigliani

 

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AN ACT relating to energy; revising the membership of the Task Force for Renewable Energy and Energy Conservation; requiring the Public Utilities Commission of Nevada to adopt a system of renewable energy credits; providing for the establishment of the Solar Energy Systems Demonstration Program; and providing other matters properly relating thereto.

 

    Whereas, Distributed generation of electricity using solar technology, including photovoltaic cells, can play an important role in the future of energy production in Nevada; and

    Whereas, Even though each individual solar energy system is small, the combination of a large number of systems on homes, businesses, schools and public buildings can reduce the demand for electricity at times of peak consumption; and

    Whereas, A large demand for individual solar energy systems will have the effect of creating new, skilled jobs and lead to the location in this state of the manufacturing of these systems and research into and development of these systems; and

    Whereas, The Nevada Legislature recently passed legislation creating a portfolio standard for renewable energy for producers of electricity and seeks to build upon that effort; and

    Whereas, Legislative action is necessary to accelerate the development of a market for photovoltaic systems in schools, public buildings, homes and small businesses and to encourage the use of trained and certified solar energy system installers; now, therefore,

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

    Section 1. NRS 701.350 is hereby amended to read as follows:

    701.350 1.  The Task Force for Renewable Energy and

Energy Conservation is hereby created. The Task Force consists of

[nine] 10 members who are appointed as follows:

    (a) Two members appointed by the Majority Leader of the

Senate, one of whom represents the interests of the renewable

energy industry in this state with respect to biomass and the other of

whom represents the interests of the mining industry in this state.

    (b) Two members appointed by the Speaker of the Assembly,

one of whom represents the interests of the renewable energy

industry in this state with respect to geothermal energy and the other

of whom represents the interests of a nonprofit organization

dedicated to the protection of the environment or to the conservation

of energy or the efficient use of energy.

    (c) One member appointed by the Minority Leader of the Senate

to represent the interests of the renewable energy industry in this

state with respect to solar energy.

    (d) One member appointed by the Minority Leader of the

Assembly to represent the interests of the public utilities in this

state.

    (e) Two members appointed by the Governor, one of whom

represents the interests of the renewable energy industry in this state

with respect to wind and the other of whom represents the interests

of the gaming industry in this state.

    (f) One member appointed by the Consumer’s Advocate to

represent the interests of the consumers in this state.

    (g) One member appointed by the governing board of the State

of Nevada AFL-CIO or, if the State of Nevada AFL-CIO ceases to

exist, by its successor organization or, if there is no successor

organization, by the Governor.

    2.  A member of the Task Force:

    (a) Must be a citizen of the United States and a resident of this

state.

    (b) Must have training, education, experience or knowledge

concerning:

        (1) The development or use of renewable energy;

        (2) Financing, planning or constructing renewable energy

generation projects;

        (3) Measures which conserve or reduce the demand for

energy or which result in more efficient use of energy;

        (4) Weatherization;

        (5) Building and energy codes and standards;

        (6) Grants or incentives concerning energy;

        (7) Public education or community relations; or

        (8) Any other matter within the duties of the Task Force.

    (c) Must not be an officer or employee of the Legislative or

Judicial Department of State Government.

    3.  After the initial terms, the term of each member of the Task

Force is 3 years. A vacancy on the Task Force must be filled for the

remainder of the unexpired term in the same manner as the original

appointment. A member may be reappointed to the Task Force.

    4.  A member of the Task Force who is an officer or employee

of this state or a political subdivision of this state must be relieved

from his duties without loss of his regular compensation so that he

may prepare for and attend meetings of the Task Force and perform

any work that is necessary to carry out the duties of the Task Force

in the most timely manner practicable. A state agency or political

subdivision of this state shall not require an officer or employee who

is a member of the Task Force to:

    (a) Make up the time he is absent from work to carry out his

duties as a member of the Task Force; or

    (b) Take annual leave or compensatory time for the absence.

    Sec. 2.  NRS 704.7815 is hereby amended to read as follows:

    704.7815 “Renewable energy system” means:

    1.  A facility or energy system that:

    (a) Uses renewable energy to generate electricity; and

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

renewable energy via:

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

distribution of electricity generated from renewable energy and

which is connected to a facility or system owned, operated or

controlled by a provider of electric service; or

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

facility or energy system generating electricity from nonrenewable

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

operated or controlled by a provider of electric service.

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

consumption of electricity.

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

pursuant to NRS 704.766 to 704.775, inclusive.

    Sec. 3.  NRS 704.7821 is hereby amended to read as follows:

    704.7821  1.  For each provider of electric service, the

Commission shall establish a portfolio standard for renewable

energy. The portfolio standard must require each provider to

generate or acquire electricity from renewable energy systems in an

amount that is:

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

the total amount of electricity sold by the provider to its retail

customers in this state during that calendar year.

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

the total amount of electricity sold by the provider to its retail

customers in this state during that calendar year.

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

the total amount of electricity sold by the provider to its retail

customers in this state during that calendar year.

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

of the total amount of electricity sold by the provider to its retail

customers in this state during that calendar year.

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

of the total amount of electricity sold by the provider to its retail

customers in this state during that calendar year.

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

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

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

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

portfolio standard for each provider must require that:

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

to generate or acquire from renewable energy systems during each

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

generated or acquired from solar renewable energy systems.

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

system pursuant to a renewable energy contract with another party:

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

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

energy contract with a shorter term; and

        (2) The terms and conditions of the renewable energy

contract must be just and reasonable, as determined by the

Commission. If the provider is a public utility and the Commission

approves the terms and conditions of the renewable energy contract

between the provider and the other party, the renewable energy

contract and its terms and conditions shall be deemed to be a

prudent investment and the provider may recover all just and

reasonable costs associated with the renewable energy contract.

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

this state, the provider has subsidized, in whole or in part, the

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

qualifies as a renewable energy system and which reduces the

consumption of electricity, the total reduction in the consumption of

electricity during each calendar year that results from the solar

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

provider generated or acquired from a renewable energy system for

the purposes of complying with its portfolio standard.

    4.  The Commission [may] shall adopt regulations that establish

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

to comply with its portfolio standard.

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

shall comply with its portfolio standard during each calendar year.

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

its portfolio standard through the generation of electricity from its

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

renewable energy credits, the provider shall take actions to acquire

electricity pursuant to one or more renewable energy contracts. If

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

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

provider pursuant to renewable energy contracts with just and

reasonable terms and conditions, the Commission shall exempt the

provider, for that calendar year, from the remaining requirements of

its portfolio standard or from any appropriate portion thereof, as

determined by the Commission.

    7.  The Commission shall adopt regulations for the

determination of just and reasonable terms and conditions for the

renewable energy contracts that a provider of electric service must

enter into to comply with its portfolio standard.

    8.  As used in this section:

    (a) “Renewable energy contract” means a contract to acquire

electricity from one or more renewable energy systems owned,

operated or controlled by other parties.

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

price that a provider of electric service must pay to acquire

electricity pursuant to a renewable energy contract.

    Sec. 4.  As used in sections 4 to 21, inclusive, of this act,

unless the context otherwise requires, the words and terms defined

in sections 5 to 13, inclusive, of this act have the meaning ascribed

to them in those sections.

    Sec. 5.  “Applicant” means a person who is applying to

participate in the Demonstration Program.

    Sec. 6.  “Category” means one of the categories of participants

in the Demonstration Program as set forth in section 14 of this act.

    Sec. 7.  “Committee” means the Task Force for Renewable

Energy and Energy Conservation created by NRS 701.350.

    Sec. 8.  “Demonstration Program” means the Solar Energy

Systems Demonstration Program created by section 14 of this act.

    Sec. 9.  “Participant” means a person who has been approved

by the Public Utilities Commission of Nevada, pursuant to section

18 of this act, to participate in the Demonstration Program.

    Sec. 10.  “Person” includes a governmental entity.

    Sec. 11.  “Program year” means the period of July 1 to June 30

of the following year.

    Sec. 12.  “Solar energy system” means a facility or energy

system for the generation of electricity that uses photovoltaic cells

and solar energy to generate electricity.

    Sec. 13.  “Utility” means a public utility that supplies

electricity in this state.

    Sec. 14.  1.  The Solar Energy Systems Demonstration

Program is hereby created.

    2.  The Demonstration Program shall have three categories of

participants as follows:

    (a) Schools;

    (b) Other public buildings; and

    (c) Private residences and small businesses.

    3.  A person is eligible to participate in the Demonstration

Program if the person:

    (a) To install a solar energy system, uses 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) For a participant in the category of schools or a participant in

the category of public buildings, provides for the public display of

the solar energy system, including, without limitation, providing for

public demonstrations of the solar energy system and for hands-on

experience of the solar energy system by the public.

    4.  In addition to the requirements of subsection 3, to be eligible

to participate in the Demonstration Program, a person must be

approved by the Public Utilities Commission of Nevada.

    5.  The Public Utilities Commission of Nevada shall adopt

regulations providing for the qualifications an applicant must meet

to qualify to participate in the Demonstration Program in the

particular category of:

    (a) Schools;

    (b) Other public buildings; or

    (c) Private residences or small businesses.

    Sec. 15.  1.  On or before November 1, 2003, the Committee

shall:

    (a) Develop an application for the Demonstration Program; and

    (b) Advertise for the submission of applications for the

Demonstration Program for the program year beginning July 1,

2004.

    2.  On or before November 1, 2004, and on or before

November 1 of each subsequent year, the Committee shall advertise

for the submission of applications for the Demonstration Program

for the following program year.

    3.  The advertisements of the Committee for application for the

Demonstration Program must include, without limitation:

    (a) A description of the requirements for participation in the

Demonstration Program;

    (b) A description of the incentives available to participants in

the Demonstration Program; and

    (c) A description of the application process to participate in the

Demonstration Program.

    Sec. 16.  1.  On or before February 1, 2004, and on or before

February 1 of each subsequent year, an applicant desiring to

participate in the Demonstration Program for the following program

year must apply to the Committee, on an application form

prescribed by the Committee.

    2.  The applicant shall include in the application to the

Committee:

    (a) A designation of the category of the applicant.

    (b) The kilowatt capacity of the proposed solar energy system.

    (c) For an applicant in the category of schools or an applicant in

the category of other public buildings, a description of the plan to

provide for the public display of the solar energy system.

    (d) Any other information required by the Committee.

    Sec. 17.  1.  On or before March 1, 2004, the Committee

shall:

    (a) Review the applications submitted for participation in the

Demonstration Program for the program year beginning July 1,

2004, to ensure that the requirements of subsection 3 of section 14

of this act are met; and

    (b) Nominate qualified applicants for participation in the

Demonstration Program for the program year beginning July 1,

2004.

    2.  On or before February 1, 2005, and on or before February 1

of each subsequent year, the Committee shall:

    (a) Review the applications submitted for participation in the

Demonstration Program for the following program year to ensure

that the requirements of subsection 3 of section 14 of this act are

met; and

    (b) Nominate qualified applicants for participation in the

Demonstration Program for the following program year.

    3.  If the Committee nominates an applicant for participation in

the Demonstration Program, the Committee shall forward the

application to the Public Utilities Commission of Nevada within 15

days after making the decision to nominate the applicant.

    Sec. 18.  1.  On or before May 1 of each year, the Public

Utilities Commission of Nevada shall:

    (a) Review each application nominated by the Committee to

ensure that the application meets the requirements of subsection 3 of

section 14 of this act; and

    (b) From those nominees, select participants for the

Demonstration Program for the following program year.

    2.  The Public Utilities Commission of Nevada may approve,

from among the applications nominated by the Committee, solar

energy systems totaling:

    (a) For the program year beginning July 1, 2004:

        (1) 100 kilowatts of capacity for schools;

        (2) 200 kilowatts of capacity for other public buildings; and

        (3) 200 kilowatts of capacity for private residences and small

businesses.

    (b) For the program year beginning July 1, 2005:

        (1) An additional 450 kilowatts of capacity for schools;

        (2) An additional 450 kilowatts of capacity for other public

buildings and

        (3) An additional 600 kilowatts of capacity for private

residences and small businesses.

    (c) For the program year beginning July 1, 2006:

        (1) An additional 900 kilowatts of capacity for schools;

        (2) An additional 900 kilowatts of capacity for other public

buildings; and

        (3) An additional 1200 kilowatts of capacity for private

residences and small businesses.

    3.  The Public Utilities Commission of Nevada shall notify each

nominee of its selections no later than 10 days after the decision is

made.

    Sec. 19.  1.  After the participant installs the solar energy

system included in the Demonstration Program, the Public Utilities

Commission of Nevada shall issue to the participant the following

renewable energy credits for use within the system of renewable

energy credits adopted by the Commission pursuant to

NRS 704.7821:

    (a) For a participant in the category of schools or a participant in

the category of other public buildings, the participant is entitled to

renewable energy credits equal to twice the actual or estimated

kilowatt-hour production of the solar energy system of the

participant for a period of not less than 10 years.

    (b) For a participant in the category for private residences and

small businesses, the participant is entitled to renewable energy

credits equal to the actual or estimated kilowatt-hour production of

the solar energy system of the participant.

    2.  The Commission shall designate the renewable energy

credits issued to the participant pursuant to subsection 1 as

renewable energy credits generated or acquired from

solar renewable energy systems. The participant may transfer the

renewable energy credits to a utility if the participant complies with

the regulations adopted by the Commission to complete such a

transfer.

    3.  The Commission shall adopt regulations to provide for the

requirements and the procedures that a participant must follow to

transfer renewable energy credits from the participant to a utility.

    Sec. 20.  1.  If the solar energy system used by a participant in

the Demonstration Program meets the requirements of NRS 704.766

to 704.775, inclusive, the participant is entitled to participate in net

metering pursuant to the provisions of NRS 704.766 to 704.775,

inclusive.

    2.  If the utility which provides service to the participant offers

an optional pricing plan that allows the utility to charge a customer

varying rates per kilowatt-hour of electricity depending on the time

of day that the customer uses the electricity, the participant is also

entitled to participate in net metering under that optional pricing

plan.

    3.  A participant who participates in net metering must be billed

on a monthly basis by the utility.

    4.  Notwithstanding the provisions of paragraph (c) of

subsection 2 of NRS 704.775, the utility shall credit the participant

for the excess energy generated by the participant which is fed back

to the utility that exceeds the electricity supplied by the utility to the

participant during any billing period. This credit must be applied

toward the electricity consumed by the participant in the 11 billing

periods immediately following the billing period in which the credit

accrues. Any credit that accrues to the participant during a billing

period that is not applied toward the electricity consumed by the

participant during the 11 billing periods immediately following must

expire without compensation to the participant. The electricity

represented by the expired credit shall be deemed to be electricity

that the utility generated or acquired from a renewable energy

system to comply with its portfolio standard pursuant to NRS

704.7801 to 704.7828, inclusive.

    5.  If the participant participates in net metering under an

optional pricing plan pursuant to the provisions of subsection 2, any

credit accrued by the participant pursuant to subsection 3 during a

billing period must, until exhausted, be applied first toward the

electricity consumed by the participant during peak period

consumption, second toward the electricity consumed by the

participant during mid-peak period consumption and finally toward

the electricity consumed by the participant during off-peak period

consumption.

    Sec. 21.  If the Public Utilities Commission of Nevada

determines that a participant did not comply with the requirements

for participation in the Demonstration Program, the Public Utilities

Commission of Nevada shall, after notice and an opportunity for a

hearing, withdraw the participant from the Demonstration Program.

    Sec. 22.  As soon as practicable after July 1, 2003, the

governing board of the State of Nevada AFL-CIO shall make the

appointment to the Task Force for Renewable Energy and Energy

Conservation required by the amendatory provisions of section 1 of

this act.

    Sec. 23.  This act becomes effective on July 1, 2003.

    Sec. 24.  The provisions of sections 4 to 21, inclusive, of this

act expire by limitation on June 30, 2007.

 

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