Arkansas 2023 Regular Session

Arkansas Senate Bill SB295 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		Stricken language would be deleted from and underlined language would be added to present law.
2		-	Act 278 of the Regular Session
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4	3
5	4		State of Arkansas As Engrossed: S2/22/23 S2/27/23 S3/6/23 1
6	5		94th General Assembly A Bill 2
7	6		Regular Session, 2023 SENATE BILL 295 3
8	7		4
9	8		By: Senator J. Dismang 5
10	9		By: Representative L. Fite 6
11	10		7
12	11		For An Act To Be Entitled 8
13	12		AN ACT TO AMEND THE ARKANSAS RENEWABLE E NERGY 9
14	13		DEVELOPMENT ACT OF 2 001; TO PREVENT COST -SHIFTING AND 10
15	14		ENSURE FAIRNESS TO A LL RATEPAYERS; TO CR EATE THE 11
16	15		CUSTOMER PROTECTIONS FOR NET-METERING CUSTOMERS A CT; 12
17	16		TO DECLARE AN EMERGE NCY; AND FOR OTHER P URPOSES. 13
18	17		14
19	18		15
20	19		Subtitle 16
21	20		TO AMEND THE ARKANSAS RENEWABLE ENERGY 17
22	21		DEVELOPMENT ACT OF 2001; TO PREVENT COST -18
23	22		SHIFTING AND ENSURE FAIRNESS TO ALL 19
24	23		RATEPAYERS; TO CREATE THE CUSTOMER 20
25	24		PROTECTIONS FOR NET-METERING CUSTOMERS 21
26	25		ACT; AND TO DECLARE AN EMERGENCY. 22
27	26		23
28	27		24
29	28		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 25
30	29		26
31	30		SECTION 1. Arkansas Code Title 23, Chapter 18, Subchapter 6 is amended 27
32	31		to read as follows: 28
33	32		Subchapter 6 — Arkansas Renewable Energy Development Cost-Shifting Prevention 29
34	33		Act of 2001 2023 30
35	34		31
36	35		23-18-601. Title. 32
37	36		This subchapter shall be known and cited as the “Arkansas Renewable 33
38	37		Energy Development Cost-Shifting Prevention Act of 2001 2023”. 34
39	38		35
40	39		23-18-602. Legislative findings and declarations. 36 As Engrossed: S2/22/23 S2/27/23 S3/6/23 SB295
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44	43
45	44		(a) Net energy metering encourages the use of renewable energy 1
46	45		resources and renewable energy technologies by reducing utility 2
47	46		interconnection and administrative costs for small consumers of electricity. 3
48	47		More than thirty (30) other states have passed similar laws or regulations in 4
49	48		support of net energy metering program s. Increasing the consumption of 5
50	49		renewable resources promotes the wise use of Arkansas's natural energy 6
51	50		resources to meet a growing energy demand, increases Arkansas's use of 7
52	51		indigenous energy fuels while reducing dependence on imported fossil fuels, 8
53	52		fosters investments in emerging renewable technologies to stimulate economic 9
54	53		development and job creation in the state, including the agricultural 10
55	54		sectors, reduces environmental stresses from energy production, and provides 11
56	55		greater consumer choices. The General Assembly finds that: 12
57	56		(1) Arkansas has an established process for the billing option 13
58	57		that enables customer -owned net-metering facilities to offset part or all of 14
59	58		a net-metering customer's electric consumption; 15
60	59		(2) This billing option should continue subject to certain 16
61	60		modifications for the benefit and rate protection of all electric utility 17
62	61		customers in Arkansas; and 18
63	62		(b)(3) Arkansas has actively encouraged the manufacture of new 19
64	63		technologies in the state through promotion of the Arkansas Emerging 20
65	64		Technology Development Act of 1999, § 15 -4-2101 et seq. [repealed]. Net 21
66	65		metering would help to further attract energy technology manufacturers, to 22
67	66		provide a foothold for these technologies in the Arkansas economy, and to 23
68	67		make it easier for customer access t o these technologies. 24
69	68		(c) Therefore, the General Assembly finds that it It is in Arkansas's 25
70	69		long-term interest to adopt this subchapter the modifications set forth in 26
71	70		this subchapter. 27
72	71		28
73	72		23-18-603. Definitions. 29
74	73		As used in this subchapter: 30
75	74		(1) “Avoided cost” means: 31
76	75		(A) For an electric utility other than a municipal 32
77	76		utility, the costs to an electric utility of electric energy or capacity, or 33
78	77		both, that, but for the generation from the net -metering facility or 34
79	78		facilities, the utility would generate itself or purchase from another 35
80	79		source, as determined by a commission consistent with § 23 -3-701 et seq. 36 As Engrossed: S2/22/23 S2/27/23 S3/6/23 SB295
81	80
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84	83
85	84		twelve-month average for the prior calendar year of the applicable Locational 1
86	85		Marginal Price associated with the electric utility's load zone in the 2
87	86		following applicable Independent System Operator market: 3
88	87		(i) The Midcontinent Independent System Operator; or 4
89	88		(ii) The Southwest Power Pool ; or 5
90	89		(B) For a municipal utility, the definition provided by 6
91	90		the governing body of the municipal utility; 7
92	91		(2) “Commission” means the Arkansas Public Service Commission or 8
93	92		other appropriate governing body for an electric utility as defined in 9
94	93		subdivision (3) of this section; 10
95	94		(3) “Electric utility” means a public or investor -owned utility, 11
96	95		an electric cooperative, or any private power supplier or marketer that is 12
97	96		engaged in the business of supplying electric energy to the ultimate consumer 13
98	97		or any customer classes within the state; 14
99	98		(4) "Monthly grid charge" means a charge expressed in dollars 15
100	99		per kilowatt applied to the nameplate alternating current capacity of the 16
101	100		net-metering facility; 17
102	101		(4)(A)(5)(A) “Municipal utility” means a utility system owned or 18
103	102		operated by a municipality that provides electricity. 19
104	103		(B) “Municipal utility” includes wit hout limitation a: 20
105	104		(i) Utility system managed or operated by a 21
106	105		nonprofit corporation under § 14 -199-701 et seq.; and 22
107	106		(ii) Utility system owned or operated by a 23
108	107		municipality or by a consolidated utility district under the General 24
109	108		Consolidated Public Utility System Improvement District Law, § 14 -217-101 et 25
110	109		seq.; 26
111	110		(5)(6) “Net excess generation” means the amount of electricity 27
112	111		as measured in kilowatt hours or kilowatt hours multiplied by the applicable 28
113	112		rate that a net-metering customer has fed back to the electric utility that 29
114	113		exceeds the amount of electricity as measured in kilowatt hours or kilowatt 30
115	114		hours multiplied by the applicable rate used by that customer during the 31
116	115		applicable period determined by a commission; 32
117	116		(6)(7) “Net metering” means measuring a billing option that 33
118	117		measures the difference in amount of electricity as measured in kilowatt 34
119	118		hours or kilowatt hours multiplied by the applicable rate supplied by an 35
120	119		electric utility to a an individual net-metering customer and separately 36 As Engrossed: S2/22/23 S2/27/23 S3/6/23 SB295
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124	123
125	124		measuring the electricity as measured in kilowatt hours generated by a net-1
126	125		metering customer and an individual net-metering customer's net -metering 2
127	126		facility and fed back to the electric utility over the applicable period 3
128	127		determined by a commission ; 4
129	128		(8) "Net-metering surplus" means the dollar value resulting from 5
130	129		multiplying the avoided cost of the electric utility to all kilowatt hours 6
131	130		supplied to the electric utility by a net -metering customer during the 7
132	131		applicable billing period under § 23 -18-604(c)(4); 8
133	132		(7)(9)(A) “Net-metering customer” means a an individual customer 9
134	133		of an electric utility that: 10
135	134		(A)(i) Is an owner of a net -metering facility; 11
136	135		(B)(ii) Leases a net-metering facility subject to the 12
137	136		following limitations: 13
138	137		(i)(a) A lease shall not permit the sale of electric 14
139	138		energy measured in kilowatt hours or electric capacity measured in kilowatts 15
140	139		between the lessor and lessee; and 16
141	140		(ii)(b) A lease shall not include any charge per 17
142	141		kilowatt hour or any charge per kilowatt; or 18
143	142		(C)(iii)(a) Is a government entity or other entity that is 19
144	143		exempt from state and federal income tax, and that, for the sole purpose of 20
145	144		this subchapter, obtains electric energy from a net -metering facility under a 21
146	145		service contract qualifying for safe -harbor protection as provided under 26 22
147	146		U.S.C. § 7701(e)(3)(A), as in effect on July 24, 2019; August 16, 2022. 23
148	147		(b) Revenues collected under contracts for 24
149	148		obtaining electric energy from a net -metering facility under a service 25
150	149		contract qualifying for safe -harbor protection as provided under 26 U.S.C. § 26
151	150		7701(e)(3)(A), as in effect on August 16, 2022, are exempt from state and 27
152	151		local sales taxes. 28
153	152		(B) "Net-metering customer" does not mean a customer that 29
154	153		is an interruptible customer of the electric utility and tak es service under 30
155	154		an electric utility's rate schedule for interruptible service, unless a 31
156	155		commission has: 32
157	156		(i) Considered an application and issued an order, before 33
158	157		December 31, 2022, addressing an individual net -metering customer's 34
159	158		application for appr oval of a net-metering facility with a name plate 35
160	159		generating capacity in excess of ten thousand kilowatts (10,000 kW) where an 36 As Engrossed: S2/22/23 S2/27/23 S3/6/23 SB295
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164	163
165	164		individual net-metering customer also takes service under an electric 1
166	165		utility's rate schedule for interruptible service; and 2
167	166		(ii) Concluded that it is in the public interest for that 3
168	167		individual interruptible customer to be a net -metering customer; 4
169	168		(8)(10) “Net-metering facility” means a facility for the 5
170	169		production of electric energy to meet all or part of a net -metering 6
171	170		customer's need for electric energy within a single utility's allocated 7
172	171		service territory that: 8
173	172		(A) Uses solar, wind, hydroelectric, geothermal, or 9
174	173		biomass resources to generate electricity, including, but not limited to, 10
175	174		fuel cells and micro turbines that generate electricity if the fuel source is 11
176	175		entirely derived from renewable resources; 12
177	176		(B)(i) Has a nameplate generating capacity of not more 13
178	177		than: 14
179	178		(i)(a) The greater of twenty -five kilowatts (25 kW) 15
180	179		or one For a residential customer for residenti al use, the lesser of twenty -16
181	180		five kilowatts (25 kW) alternating current or one hundred percent (100%) of 17
182	181		the net-metering customer's highest monthly usage in the previous twelve (12) 18
183	182		months for residential use unless an individual net -metering customer's net-19
184	183		metering facility with a greater amount is included in a standard 20
185	184		interconnection agreement executed before December 31, 2022 ; 21
186	185		(ii)(b) For customers of electric utilities, one 22
187	186		thousand kilowatts (1,000 kW) for use other than residential use unless 23
188	187		otherwise allowed by a commission under § 23 -18-604 For nonresidential 24
189	188		customers of electric utilities for nonresidential use, less than or equal to 25
190	189		the lesser of five thousand kilowatts (5,000 kW) alternating current or one 26
191	190		hundred percent (100%) of the net-metering customer's highest monthly usage 27
192	191		in the previous twelve (12) months within a single utility's allocated 28
193	192		service territory where a single net -metering facility is physically located 29
194	193		behind a net-metering customer's electric utility meter that r epresents one 30
195	194		hundred percent (100%) of the net -metering customer's energy usage served by 31
196	195		the net-metering facility; or 32
197	196		(iii)(c) For customers of a municipal utility, 33
198	197		the limits established by the governing body of the municipal utility under § 34
199	198		23-18-605;. 35
200	199		(ii)(a) The total nameplate generating capacity of 36 As Engrossed: S2/22/23 S2/27/23 S3/6/23 SB295
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204	203
205	204		all net-metering facilities owned by, leased by, or providing electric energy 1
206	205		under one (1) or more qualifying service contracts of an individual net -2
207	206		metering customer serving multiple meter l ocations under common ownership of 3
208	207		any net-metering customer, within a single utility's allocated service 4
209	208		territory, shall be less than or equal to the lesser of five thousand 5
210	209		kilowatts (5,000 kW) alternating current or one hundred percent (100%) of the 6
211	210		net-metering customer's highest monthly usage in the previous twelve (12) 7
212	211		months, unless: 8
213	212		(1) A commission approved a greater 9
214	213		amount for an individual net -metering customer before December 31, 2022; 10
215	214		(2) An individual net -metering customer 11
216	215		has executed a contract with a net -metering facility developer by February 12
217	216		22, 2023, to purchase a net -metering facility with a nameplate capacity not 13
218	217		to exceed twenty thousand kilowatts (20,000 kW) and has filed the contract 14
219	218		with a commission under a protecti ve order by March 31, 2023; or 15
220	219		(3) An individual net -metering customer 16
221	220		filed an application with a commission for approval of a net -metering 17
222	221		facility with a nameplate generating capacity not to exceed twenty thousand 18
223	222		kilowatts (20,000 kW) before Dec ember 31, 2022. 19
224	223		(b)(1) A net-metering facility serving 20
225	224		multiple meter locations under common ownership shall be located on a 21
226	225		separate property from any other net -metering facility or only co -locate on a 22
227	226		property with one (1) other net -metering facility within a single utility's 23
228	227		allocated service territory. 24
229	228		(2) For a net-metering facility under 25
230	229		subdivision (10)(B)(ii)(b)(1) of this section, the nameplate generating 26
231	230		capacity under this subdivision (10)(B)(ii) includes the total kilowatt 27
232	231		nameplate-generating capacity of all net -metering facilities serving multiple 28
233	232		meter locations under common ownership within a single electric utility's 29
234	233		allocated service territory owned by, leased by, or providing electric energy 30
235	234		under one (1) or more qualifying s ervice contracts to a net -metering 31
236	235		customer, including without limitation any net -metering facilities serving 32
237	236		multiple meter locations under common ownership; 33
238	237		(C) Is located in Arkansas; 34
239	238		(D) Can operate in parallel with an electric utility's 35
240	239		existing transmission and distribution facilities existing distribution 36 As Engrossed: S2/22/23 S2/27/23 S3/6/23 SB295
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244	243
245	244		facilities or, if permitted by the electric utility, an electric utility's 1
246	245		transmission facilities ; 2
247	246		(E) Is intended primarily to offset part or all of the an 3
248	247		individual net-metering customer customer's requirements for electricity; and 4
249	248		(F)(i) May include an energy storage device that is 5
250	249		configured to receive electric energy solely from a net -metering facility. 6
251	250		(ii) The capacity of an energy storage device shall 7
252	251		not be used to calculate the capacity limits listed in subdivision 8
253	252		(8)(B)(10)(B) of this section if the energy storage device is configured to 9
254	253		receive electric energy solely from a net -metering facility; 10
255	254		(9) “Quantifiable benefits” means the: 11
256	255		(A) Reasonably demonstrated costs that: 12
257	256		(i) Are related to the provision of electric service 13
258	257		and based on the utility's most recent cost -of-service study filed with the 14
259	258		commission; and 15
260	259		(ii) Will be avoided by the utility by the use of 16
261	260		net metering; 17
262	261		(B) Monetary value provided to a utility by the use of net 18
263	262		metering as specified by a market mechanism, if any, of the regional 19
264	263		transmission organization of which the electric utility is a member; and 20
265	264		(C) Monetary value provided to a utility by the use of net 21
266	265		metering as specified by a market mechanism, if any, that measures utility 22
267	266		distribution system benefits; and 23
268	267		(10)(11) “Renewable energy credit” means the environmental, 24
269	268		economic, and social attributes of a unit of electricity, such as a megawatt 25
270	269		hour, generated from renewable fuels that can be sold or traded separately. 26
271	270		27
272	271		23-18-604. Commission authority — Definition. 28
273	272		(a)(1) An electric utility shall allow net -metering facilities to be 29
274	273		interconnected using , at a minimum, a single standard two-channel digital 30
275	274		meter capable of registering the flow of electricity in two (2) directions 31
276	275		that separately measures the electric energy in kilowatt hours that is: 32
277	276		(A) Supplied by an electric utility to the net -metering 33
278	277		customer; and 34
279	278		(B) Generated by the n et-metering customer's net -metering 35
280	279		facility and fed back to an electric utility . 36 As Engrossed: S2/22/23 S2/27/23 S3/6/23 SB295
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284	283
285	284		(2) An electric utility may impose a charge to recover any cost 1
286	285		of the standard two-channel digital meter that is not otherwise included in 2
287	286		the rates paid by the net -metering customer. 3
288	287		(b)(1) Following notice, and opportunity for public comment , and a 4
289	288		hearing, a commission shall: 5
290	289		(1) Shall establish appropriate rates, terms, and conditions for 6
291	290		net metering, including without limitation the adoption or revision of any 7
292	291		applicable rules on or before December 31, 2023;. 8
293	292		(2) For net-metering customers who receive service under a rate 9
294	293		that does not include a demand component, may: 10
295	294		(A) Require an electric u tility to credit the net -metering 11
296	295		customer with any accumulated net excess generation as measured in kilowatt 12
297	296		hours or kilowatt hours multiplied by the applicable rate in the next 13
298	297		applicable billing period and base the bill of the net -metering customer on 14
299	298		the net amount of electricity as measured in kilowatt hours or kilowatt hours 15
300	299		multiplied by the applicable rate that the net -metering customer has received 16
301	300		from or fed back to the electric utility during the billing period; 17
302	301		(B) Take the following actio ns if those actions are in the 18
303	302		public interest and doing so will not result in an unreasonable allocation of 19
304	303		or increase in costs to other utility customers: 20
305	304		(i) Separately meter the electric energy, measured 21
306	305		in kilowatt hours, supplied by the electric utility to the net -metering 22
307	306		customer and the electric energy, measured in kilowatt hours, that is 23
308	307		generated by the net -metering customer's net -metering facility that is fed 24
309	308		back to the electric utility at any time during the applicable billing 25
310	309		period; 26
311	310		(ii) Apply the commission -approved retail rate to 27
312	311		all kilowatt hours that are supplied by the electric utility to a net -28
313	312		metering customer by the electric utility during the applicable period 29
314	313		determined by a commission; 30
315	314		(iii) Apply the avoide d cost of the electric utility 31
316	315		plus any additional sum determined under subdivision (b)(2)(B)(iv) of this 32
317	316		section to all kilowatt hours supplied to the electric utility by a net -33
318	317		metering customer, during the period determined by a commission, which shall 34
319	318		be credited to the total bill of the net -metering customer in a dollar value; 35
320	319		and 36 As Engrossed: S2/22/23 S2/27/23 S3/6/23 SB295
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325	324		(iv) The additional sum added to the avoided cost of 1
326	325		the electric utility may be applied after the demonstration of quantifiable 2
327	326		benefits by the net-metering customer and shall not exceed forty percent 3
328	327		(40%) of the avoided cost of the electric utility; 4
329	328		(C) Authorize an electric utility to assess a net -metering 5
330	329		customer that is being charged a rate that does not include a demand 6
331	330		component a per-kilowatt-hour fee or charge to recover the quantifiable 7
332	331		direct demand-related distribution cost of the electric utility for providing 8
333	332		electricity to the net -metering customer that is not: 9
334	333		(i) Avoided as a result of the generation of 10
335	334		electricity by the net -metering facility; a nd 11
336	335		(ii) Offset by quantifiable benefits; or 12
337	336		(D) Take other actions that are in the public interest and 13
338	337		do not result in an unreasonable allocation of costs to other utility 14
339	338		customers; The right to a hearing under this subsection may be waived by t he 15
340	339		parties. 16
341	340		(c) Through its actions under subdivision (b)(1) of this section, a 17
342	341		commission shall: 18
343	342		(1)(A) Ensure that each net -metering customer pays either the 19
344	343		entire costs of an electric utility's facilities and associated expenses or 20
345	344		the appropriate portion of the costs and associated expenses as determined 21
346	345		under a rate schedule approved by a commission required to: 22
347	346		(i) Provide service to the net -metering customer; 23
348	347		and 24
349	348		(ii) Enable the net -metering customer's use of the 25
350	349		electric utility's facilities. 26
351	350		(B) The costs described under subdivision (c)(1)(A) of 27
352	351		this section include without limitation any costs that are: 28
353	352		(i) Recovered through rates using the cost -of-29
354	353		service study underlying the rates approved by a commission in the electr ic 30
355	354		utility's most recent application for a general change or modification of the 31
356	355		electric utility's rates under § 23 -4-401 et seq.; 32
357	356		(ii) Recovered through riders or surcharges; and 33
358	357		(iii) Adjusted for any commission -approved: 34
359	358		(a) Formula rate plan adjustments under the 35
360	359		Formula Rate Review Act, § 23 -4-1201 et seq.; or 36 As Engrossed: S2/22/23 S2/27/23 S3/6/23 SB295
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364	363
365	364		(b) Adjustments under § 23 -4-901 et seq. 1
366	365		(C) By December 31, 2023, a commission shall approve 2
367	366		modifications to each electric utility's rate schedules applicable to net -3
368	367		metering customers pursuant to the rate structure the electric utility elects 4
369	368		under § 23-18-606(a); 5
370	369		(2) Allow an electric utility to modify the rates, terms, and 6
371	370		conditions, including without limitation the rate structure and any 7
372	371		individual rate compon ents for net-metering customers, subject to approval by 8
373	372		the commission, without filing an application for a general change or 9
374	373		modification of the electric utility's rates under § 23 -4-401 et seq.; 10
375	374		(3) Not adjust the costs of an electric utility's facili ties and 11
376	375		associated expenses required to provide service to a net -metering customer 12
377	376		and to enable the net -metering customer's use of the electric utility's 13
378	377		facilities as specified in subdivision (c)(1)(A) of this section with any 14
379	378		amounts that are not quant ified in the cost-of-service study underlying the 15
380	379		retail rates approved by a commission in the electric utility's most recent 16
381	380		application for a general change or modification in rates under § 23 -4-401 et 17
382	381		seq., including without limitation any commission -approved: 18
383	382		(A) Formula rate plan adjustments under the Formula Rate 19
384	383		Review Act, § 23-4-1201 et seq.; or 20
385	384		(B) Adjustments under § 23 -4-901 et seq.; 21
386	385		(4) Establish rates for a net -metering customer using one (1) of 22
387	386		the rate structures under § 23 -18-606; 23
388	387		(5) Separately meter the electric energy, measured in kilowatt 24
389	388		hours, supplied by the electric utility to the net -metering customer and the 25
390	389		electric energy, measured in kilowatt hours, that is fed back to the electric 26
391	390		utility from the net -metering customer's net-metering facility at any time 27
392	391		during the applicable billing period; 28
393	392		(6) Apply the commission -approved customer charge, demand 29
394	393		charge, or minimum bill provision and other applicable commission -approved 30
395	394		charges addressed in subdivision (c)(1)( A) of this section; 31
396	395		(7) Apply the commission -approved charges addressed in 32
397	396		subdivision (c)(1)(A) of this section to the applicable net -metering 33
398	397		customers, including without limitation any rates, riders, and surcharges 34
399	398		that are applied based on the volum e of kilowatt hours of electricity 35
400	399		supplied by an electric utility, to all kilowatt hours that are supplied by 36 As Engrossed: S2/22/23 S2/27/23 S3/6/23 SB295
401	400
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403	402
404	403
405	404		the electric utility to a net -metering customer by the electric utility 1
406	405		during the applicable billing period; 2
407	406		(8) Authorize an electric utilit y to recover any net -metering 3
408	407		surplus or the dollar value of any net excess generation applied to the bills 4
409	408		of net-metering customers in the same manner that the electric utility 5
410	409		recovers the cost of fuel and purchased energy; 6
411	410		(3) Shall require that net-metering equipment be installed to 7
412	411		accurately measure the electricity: 8
413	412		(A) Supplied by the electric utility to each net -metering 9
414	413		customer; and 10
415	414		(B) Generated by each net -metering customer that is fed 11
416	415		back to the electric utility over the applica ble billing period; 12
417	416		(4) May authorize (9)(A) Authorize an electric utility to 13
418	417		assess a net-metering customer a greater fee or charge of any type, if the 14
419	418		electric utility's direct costs of interconnection and administration of net 15
420	419		metering outweigh the distribution system, environmental, and public policy 16
421	420		benefits of allocating the costs among the electric utility's entire customer 17
422	421		base standard one-time fee, to be approved by the commission, to recover 18
423	422		administrative and related interconnection review costs. 19
424	423		(B) Any costs incurred by the electric utility for an 20
425	424		interconnection study are the sole responsibility of the net -metering 21
426	425		customer and shall be paid in advance of any work's being undertaken by the 22
427	426		electric utility to: 23
428	427		(i) Enable the interconnection; and 24
429	428		(ii) Recover the electric utility's direct costs of 25
430	429		interconnection and any grid upgrades required to connect the net -metering 26
431	430		customer's net-metering facility; 27
432	431		(10)(A) Require that a net -metering customer retains any 28
433	432		renewable energy credit created as a result of the electricity supplied by a 29
434	433		net-metering customer that generated the renewable energy credit. 30
435	434		(B) The renewable energy credit may be retained, retired, 31
436	435		or sold for the sole benefit of the net -metering customer; and 32
437	436		(5) For net-metering customers who receive service under a rate 33
438	437		that does not include a demand component, shall require an electric utility 34
439	438		to credit a net-metering customer with the amount of any accumulated net 35
440	439		excess generation as measured in kilowat t hours or kilowatt hours multiplied 36 As Engrossed: S2/22/23 S2/27/23 S3/6/23 SB295
441	440
442	441		12 03-06-2023 13:52:42 CRH142
443	442
444	443
445	444		by the applicable rate in the next applicable billing period; 1
446	445		(6) Except as provided in subdivision (b)(9) of this section, 2
447	446		for net-metering customers who receive service under a rate that includes a 3
448	447		demand component, shall require an electric utility to credit the net -4
449	448		metering customer with any accumulated net excess generation in the next 5
450	449		applicable billing period and base the bill of the net -metering customer on 6
451	450		the net amount of electricity that the net -metering customer has received 7
452	451		from or fed back to the electric utility during the billing period; 8
453	452		(7) May expand the scope of net metering to include additional 9
454	453		facilities that do not use a renewable energy resource for a fuel if so doing 10
455	454		results in distribution system, environmental, or public policy benefits; 11
456	455		(8) Shall provide that: 12
457	456		(A)(i) The amount of the net excess generation credit as 13
458	457		measured in kilowatt hours or kilowatt hours multiplied by the applicable 14
459	458		rate remaining in a net -metering customer's account at the close of a billing 15
460	459		cycle shall not expire and shall be carried forward to subsequent billing 16
461	460		cycles indefinitely. 17
462	461		(ii) However, for net excess generation credits 18
463	462		older than twenty-four (24) months, a net -metering customer may elect to have 19
464	463		the electric utility purchase the net excess generation credits in the net -20
465	464		metering customer's account at the electric utility's avoided cost, plus any 21
466	465		additional sum determined under this section, if the sum to be paid to the 22
467	466		net-metering customer is at least one hundred dollars ($100). 23
468	467		(iii) An electric utility shall purchase at the 24
469	468		electric utility's avoided cost, plus any additional sum determined under 25
470	469		this section, any net excess generation credit remaining in a net -metering 26
471	470		customer's account when the net-metering customer: 27
472	471		(a) Ceases to be a customer of the electric 28
473	472		utility; 29
474	473		(b) Ceases to operate the net -metering 30
475	474		facility; or 31
476	475		(c) Transfers the net -metering facility to 32
477	476		another person; and 33
478	477		(B) A renewable energy credit created as the result of 34
479	478		electricity supplied by a net -metering customer is the property of the net -35
480	479		metering customer that generated the renewable energy credit; and 36 As Engrossed: S2/22/23 S2/27/23 S3/6/23 SB295
481	480
482	481		13 03-06-2023 13:52:42 CRH142
483	482
484	483
485	484		(9) May allow a net -metering facility with a generating capacity 1
486	485		that exceeds the limit s provided under § 23 -18-603(8)(B)(ii) or § 23 -18-2
487	486		603(8)(B)(iii) of up to twenty thousand kilowatts (20,000 kW) if: 3
488	487		(A) For any net-metering facility with a generating 4
489	488		capacity of less than five thousand kilowatts (5,000 kW): 5
490	489		(i) The net-metering facility is not for residential 6
491	490		use; 7
492	491		(ii) Increasing the generating capacity limits for 8
493	492		individual net-metering facilities results in distribution system, 9
494	493		environmental, or public policy benefits or allowing an increased generating 10
495	494		capacity for the net-metering facility would increase the state's ability to 11
496	495		attract businesses to Arkansas; and 12
497	496		(iii) Allowing an increased generating capacity for 13
498	497		the net-metering facility is in the public interest; or 14
499	498		(B) For any net-metering facility with a gene rating 15
500	499		capacity of greater than five thousand kilowatts (5,000 kW): 16
501	500		(i) The net-metering facility is not for residential 17
502	501		use; 18
503	502		(ii) Increasing the generating capacity limits for 19
504	503		individual net-metering facilities results in distribution system, 20
505	504		environmental, or public policy benefits or allowing an increased generating 21
506	505		capacity for the net -metering facility would increase the ability of the 22
507	506		state to attract business to Arkansas; 23
508	507		(iii) Allowing an increased generating capacity for 24
509	508		the net-metering facility does not result in an unreasonable allocation of 25
510	509		costs to other utility customers; and 26
511	510		(iv) Allowing an increased generating capacity for 27
512	511		the net-metering facility is in the public interest; and 28
513	512		(10)(A) Shall allow the net -metering facility of a net -metering 29
514	513		customer who has submitted a standard interconnection agreement, as referred 30
515	514		to in the rules of the Arkansas Public Service Commission, to the electric 31
516	515		utility after July 24, 2019, but before December 31, 2022, to remain un der 32
517	516		the rate structure in effect when the net -metering contract was signed, for a 33
518	517		period not to exceed twenty (20) years, subject to approval by a commission. 34
519	518		(B) A net-metering facility under subdivision (b)(10)(A) 35
520	519		of this section remains subject to a ny other change or modification in rates, 36 As Engrossed: S2/22/23 S2/27/23 S3/6/23 SB295
521	520
522	521		14 03-06-2023 13:52:42 CRH142
523	522
524	523
525	524		terms, and conditions (11)(A) Allow a net-metering facility of an individual 1
526	525		net-metering customer to remain under the rate structure, terms, and 2
527	526		conditions in effect before December 31, 2022, until June 1, 2040, if the 3
528	527		net-metering customer has: 4
529	528		(i) Submitted a standard interconnection agreement 5
530	529		to the electric utility before September 30, 2024; 6
531	530		(ii) Submitted a facilities agreement or equivalent 7
532	531		document to establish an account with an electric utilit y and paid all costs 8
533	532		of constructing the electric utility facilities necessary to interconnect the 9
534	533		net-metering facility before September 30, 2024; or 10
535	534		(iii) Filed a complaint with a commission addressing 11
536	535		a disputed facilities agreement or equivalent document to establish an 12
537	536		account with an electric utility after the presentation by the electric 13
538	537		utility to the net-metering customer of the facilities agreement or 14
539	538		equivalent document and the required costs of constructing the facilities 15
540	539		necessary to interconnect the net -metering facility before September 30, 16
541	540		2024. 17
542	541		(B) A net-metering facility of an individual net-metering 18
543	542		customer that does not meet the requirements of subdivision (c)(11)(A) of 19
544	543		this section shall be billed using one (1) of the rate structures established 20
545	544		in § 23-18-606. 21
546	545		(C) A net-metering facility billed using the rate 22
547	546		structures described in subdivisions (c)(11)(A) and (B) of this section 23
548	547		remains subject to any other change or modification in rates, terms, and 24
549	548		conditions. 25
550	549		(c)(1)(d)(1) Except as provided in subdivision (c)(2)(d)(2) of this 26
551	550		section, an electric utility shall separately meter, bill, and credit each 27
552	551		net-metering facility even if one (1) or more net -metering facilities are 28
553	552		under common ownership. 29
554	553		(2)(A)(i) At the an individual net-metering customer's 30
555	554		discretion, an electric utility may shall apply net-metering credits for 31
556	555		customers who are billed under § 23 -18-606(a)(2)(A)-(G) or the net-metering 32
557	556		surplus for all other customers from a an individual net-metering customer's 33
558	557		net-metering facility to the bill for another meter location of the 34
559	558		individual net-metering customer if the net-metering facility and the 35
560	559		separate meter location are under common ownership of the same individual 36 As Engrossed: S2/22/23 S2/27/23 S3/6/23 SB295
561	560
562	561		15 03-06-2023 13:52:42 CRH142
563	562
564	563
565	564		net-metering customer within a single electric utility's allocated service 1
566	565		area territory and: 2
567	566		(a) Are located within a one hundred (100) 3
568	567		miles radius of the individual net -metering customer's net -metering facility, 4
569	568		unless: 5
570	569		(1) A commission approved a greater 6
571	570		distance for an individual net-metering customer before December 31, 2022; 7
572	571		(2) An individual net -metering customer 8
573	572		has executed a contract with a net -metering facility developer by February 9
574	573		22, 2023, to purchase a net -metering facility with a nameplate capacity not 10
575	574		to exceed twenty thousand kilowatts (20,000 kW) with a greater distance and 11
576	575		has filed that contract with a commission under a protective order by March 12
577	576		31, 2023; or 13
578	577		(3) An individual net -metering customer 14
579	578		has filed an application with a commissi on for approval of a net -metering 15
580	579		facility with a nameplate generating capacity not to exceed twenty thousand 16
581	580		kilowatts (20,000 kW) with a greater distance before December 31, 2022; or 17
582	581		(b) For a net-metering facility that did not 18
583	582		require approval by a commission, are constructed at a greater distance and 19
584	583		included in an executed standard interconnection agreement submitted before 20
585	584		December 31, 2023. 21
586	585		(ii) Subdivision (c)(2)(A)(i) of this section does 22
587	586		not apply if more than two (2) customers that are governmental entities or 23
588	587		other entities that are exempt from state and federal income tax defined 24
589	588		under § 23-18-603(7)(C) co-locate at a site hosting the net -metering facility 25
590	589		A separate meter location under subdivision (d)(2)(A)(i) of this section 26
591	590		shall be credited only with net -metering surplus from one (1) net -metering 27
592	591		facility owned by, leased by, or providing electric service under a 28
593	592		qualifying service contract of the same individual net -metering customer, 29
594	593		with all accounts being under common ownershi p for the same individual net -30
595	594		metering customer. 31
596	595		(B) Net excess generation Net-metering surplus shall be 32
597	596		credited first to the an individual net-metering customer's bill for the 33
598	597		meter to which the net -metering facility is physically attached. 34
599	598		(C) After applying net excess generation net-metering 35
600	599		surplus under subdivision (c)(2)(B)(d)(2)(B) of this section and upon request 36 As Engrossed: S2/22/23 S2/27/23 S3/6/23 SB295
601	600
602	601		16 03-06-2023 13:52:42 CRH142
603	602
604	603
605	604		of the net-metering customer under subdivision (c)(2)(A)(d)(2)(A) of this 1
606	605		section, any remaining net excess generation net-metering surplus shall be 2
607	606		credited to one (1) or more of the individual net-metering customer's bills 3
608	607		for the individual net -metering customer's meters in the rank order provided 4
609	608		by the individual net-metering customer. 5
610	609		(d)(e) A person who that acts as a lessor or service provider as 6
611	610		described in § 23-18-603(7)(B) § 23-18-603(9)(B) or § 23-18-603(7)(C) § 23-7
612	611		18-603(9)(C) shall not be considered a public utility as defined in § 23 -1-8
613	612		101. 9
614	613		(f) An electric utility shall not be obligated to: 10
615	614		(1) Accept or release any portion of its or another electric 11
616	615		utility's allocated service territory to accommodate the development, 12
617	616		construction, or operation of a net -metering facility; or 13
618	617		(2) Publish, provide, or release any information regarding its 14
619	618		electric utility facilities or system to aid in the location of the net -15
620	619		metering facilities beyond its established site review process. 16
621	620		17
622	621		23-18-605. Municipal utilities. 18
623	622		(a) A municipal utility shall allow net -metering facilities to be 19
624	623		interconnected according to t he ordinances, rules, or regulations established 20
625	624		by the governing body of the municipal utility. 21
626	625		(b) The governing body of a municipal utility may elect to follow 22
627	626		procedures under § 23 -18-604, § 23-18-606, or § 23-18-607 or may adopt 23
628	627		ordinances, rules, o r regulations establishing the rates, terms, and 24
629	628		conditions allowing the interconnection of net -metering facilities, including 25
630	629		generation facilities and energy storage devices, whether owned or leased by 26
631	630		a customer or operated by a third party on behalf of a customer. 27
632	631		(c) The governing body of a municipal utility may limit the generating 28
633	632		capacity of a net-metering facility to less than twenty -five kilowatts (25 29
634	633		kW) for residential customers or three hundred kilowatts (300 kW) for 30
635	634		nonresidential customers only after the governing body finds that the 31
636	635		capacity limit is necessary for reliable utility operations or the public 32
637	636		health, safety, or welfare. 33
638	637		(d) The governing body of a municipal utility shall not establish a 34
639	638		rate or fee that reduces the value of electric energy from a net -metering 35
640	639		facility to below the avoided cost of the municipal utility. 36 As Engrossed: S2/22/23 S2/27/23 S3/6/23 SB295
641	640
642	641		17 03-06-2023 13:52:42 CRH142
643	642
644	643
645	644		(e) For customers who receive service under a rate that includes a 1
646	645		demand component, the governing body of the municipal utility shall require a 2
647	646		municipal utility to credit a net -metering customer with any accumulated net 3
648	647		excess generation in the next applicable billing period and base the bill of 4
649	648		the customer on the net amount of electricity that the net -metering customer 5
650	649		has received from or fed back to the municipal utility during the billing 6
651	650		period. 7
652	651		8
653	652		23-18-606. Rate structure determination. 9
654	653		(a) At its discretion, an electric utility may elect to use one (1) of 10
655	654		the following rate structures to develop rates for net -metering customers: 11
656	655		(1) A rate structure in which the electric utility: 12
657	656		(A) Separately meters the electric energy, measured in 13
658	657		kilowatt hours: 14
659	658		(i) Supplied by the electric utility to the net -15
660	659		metering customer; and 16
661	660		(ii) Fed back to the electric utility from the net -17
662	661		metering customer's net-metering facility at any time during the applicable 18
663	662		billing period; 19
664	663		(B) Applies the: 20
665	664		(i) Commission-approved customer charge, demand 21
666	665		charge, minimum bill provision, and other applicable commission -approved 22
667	666		charges under § 23-18-604(c)(1)(A); 23
668	667		(ii) Commission-approved charges under § 23 -18-24
669	668		604(c)(1)(A) to the applicable net -metering customers, including without 25
670	669		limitation any rates, riders, and surcharges applied based on the volume of 26
671	670		kilowatt hours of electricity supplied by an electric utility pursuant to the 27
672	671		rate structure the electric utility elects under this subsection; and 28
673	672		(iii) Avoided cost of the electric utility to all 29
674	673		kilowatt hours supplied to the electric utility by a net -metering customer 30
675	674		during the applicable billing period to be credited to the total bill of the 31
676	675		net-metering customer in a dollar value, excluding th e customer charge and 32
677	676		any applicable demand charge or minimum bill provision that the net -metering 33
678	677		customer shall pay each month; 34
679	678		(C) Credits the net -metering customer with any accumulated 35
680	679		net-metering surplus as measured in dollars during the next app licable 36 As Engrossed: S2/22/23 S2/27/23 S3/6/23 SB295
681	680
682	681		18 03-06-2023 13:52:42 CRH142
683	682
684	683
685	684		billing period; and 1
686	685		(D) Credits the bills of the net -metering customer's other 2
687	686		meters with the net-metering surplus measured in dollars under § 23 -18-3
688	687		604(d)(2); or 4
689	688		(2) A rate structure in which the electric utility: 5
690	689		(A) Separately meters the electric energy, measured in 6
691	690		kilowatt hours: 7
692	691		(i) Supplied by the electric utility to the net -8
693	692		metering customer; and 9
694	693		(ii) Fed back to the electric utility from the net -10
695	694		metering customer's net -metering facility at any time during the applicab le 11
696	695		billing period; 12
697	696		(B) Applies the: 13
698	697		(i) Commission-approved customer charge, demand 14
699	698		charge, minimum bill provision, and other applicable commission -approved 15
700	699		charges under § 23-18-604(c)(1)(A); and 16
701	700		(ii) Commission-approved riders or surcharge s under 17
702	701		§ 23-18-604(c)(1)(A), including without limitation any rates, riders, and 18
703	702		surcharges applied based on the volume of kilowatt hours of electricity 19
704	703		supplied by an electric utility pursuant to the rate structure the electric 20
705	704		utility elects under this subsection; 21
706	705		(C) Credits the net -metering customer with any accumulated 22
707	706		net excess generation during the next applicable billing period; 23
708	707		(D) Calculates the net kilowatt hours of the electric 24
709	708		energy supplied by the electric utility to the net -metering customer, less 25
710	709		the net excess generation and any net excess generation carried forward from 26
711	710		prior billing periods; 27
712	711		(E) Applies the commission -approved retail rate, except as 28
713	712		provided in subdivision (a)(2)(B) of this section, not to exceed the kilowat t 29
714	713		hours supplied to the net -metering customer by the electric utility during 30
715	714		the applicable billing period; 31
716	715		(F) Carries forward any net excess generation that exceeds 32
717	716		the kilowatt hours supplied by the electric utility during the applicable 33
718	717		billing period to the next billing period; 34
719	718		(G) Excludes any net excess generation applied to another 35
720	719		meter location of the net -metering customer under § 23 -18-604(d); and 36 As Engrossed: S2/22/23 S2/27/23 S3/6/23 SB295
721	720
722	721		19 03-06-2023 13:52:42 CRH142
723	722
724	723
725	724		(H) Applies the monthly grid charge under § 23 -18-607. 1
726	725		(b) A commission shall approve the rates established by a rate 2
727	726		structure used by an electric utility under subsection (a) of this section. 3
728	727		4
729	728		23-18-607. Monthly grid charge. 5
730	729		(a)(1) If an electric utility follows the rate structure in § 23 -18-6
731	730		606(2), the electric utility shall apply a monthly grid charge to: 7
732	731		(A) Collect any of the fixed charges that are collected 8
733	732		through volumetric charges, including without limitation any riders and 9
734	733		surcharges; and 10
735	734		(B) Exclude the cost of fuel and purchased energy. 11
736	735		(2) The monthly grid charge shall be calculated based upon the: 12
737	736		(A) Currently approved rates; and 13
738	737		(B) Cost-of-service study underlying the electric 14
739	738		utility's currently approved rates adjusted for any commission -approved: 15
740	739		(i) Formula rate plan adjustments und er the Formula 16
741	740		Rate Review Act, § 23 -4-1201 et seq.; or 17
742	741		(ii) Adjustments under § 23 -4-901 et seq. 18
743	742		(b) The monthly grid charge under this section shall be calculated for 19
744	743		each customer class as follows: 20
745	744		(1)(A) Calculate the sum of all fixed costs collected through 21
746	745		volumetric rates. 22
747	746		(B) The fixed costs collected through volumetric rates 23
748	747		shall be any demand-related or customer-related costs collected in rates 24
749	748		stated in dollars per kilowatt hour; and 25
750	749		(2)(A) Convert the fixed costs calculated in subdivision (b)(1) 26
751	750		of this section into a rate, expressed in dollars per kilowatt hour, by 27
752	751		dividing the total of the fixed costs under subdivision (b)(1) of this 28
753	752		section for each customer class by the electric utility's sales during the 29
754	753		test-year used to develop the retail rates approved by the commission in the 30
755	754		electric utility's most recent application for a general change or 31
756	755		modification in rates under § 23 -4-401 et seq. 32
757	756		(B) The monthly grid charge for each customer class shall 33
758	757		be determined by mult iplying the fixed costs expressed under subdivision 34
759	758		(b)(2)(A) of this section by the expected monthly output of a one -kilowatt 35
760	759		alternating current solar photovoltaic solar system determined under 36 As Engrossed: S2/22/23 S2/27/23 S3/6/23 SB295
761	760
762	761		20 03-06-2023 13:52:42 CRH142
763	762
764	763
765	764		subsection (c) of this section. 1
766	765		(c)(1) The expected monthl y output of a one-kilowatt alternating 2
767	766		current solar photovoltaic solar system shall be: 3
768	767		(A) Expressed in kilowatt hours; and 4
769	768		(B) Calculated by dividing the expected average annual 5
770	769		output for a one-kilowatt alternating current solar photovoltaic solar system 6
771	770		using the process described in subdivisions (c)(2) and (3) of this section by 7
772	771		twelve (12). 8
773	772		(2) For a fixed-tilt solar photovoltaic system, the average 9
774	773		annual output for a one -kilowatt alternating current solar photovoltaic solar 10
775	774		system shall be: 11
776	775		(A) Expressed in kilowatt hours; and 12
777	776		(B) Determined using the National Renewable Energy 13
778	777		Laboratory PVWatts Calculator using a direct current to alternating current 14
779	778		(DC/AC) ratio of one and one -tenth (1.1) using a single location central to 15
780	779		the electric utility's service territory. 16
781	780		(3) For a single-axis tracking solar photovoltaic system, the 17
782	781		average annual output for a one -kilowatt alternating current solar 18
783	782		photovoltaic solar system shall be: 19
784	783		(A) Expressed in kilowatt hours; and 20
785	784		(B) Determined using the National Renewable Energy 21
786	785		Laboratory PVWatts Calculator using a direct current to alternating current 22
787	786		(DC/AC) ratio of one and three -tenths (1.3) using a single location central 23
788	787		to the electric utility's service territory. 24
789	788		(d) The monthly grid charge shall not be less than the amount of any 25
790	789		electric utility fixed costs that are collected through volumetric charges, 26
791	790		including without limitation any riders, and excluding the cost of fuel and 27
792	791		purchased energy that the net-metering customer avoids. 28
793	792		29
794	793		SECTION 2. Arkansas Code Title 4, Chapter 88, is amended to add an 30
795	794		additional subchapter to read as follows: 31
796	795		Subchapter 11 — Customer Protections for Net -metering Customers Act 32
797	796		33
798	797		4-88-1101. Title. 34
799	798		This subchapter shall be known and may be cited as "Customer 35
800	799		Protections for Net-metering Customers Act". 36 As Engrossed: S2/22/23 S2/27/23 S3/6/23 SB295
801	800
802	801		21 03-06-2023 13:52:42 CRH142
803	802
804	803
805	804		1
806	805		4-88-1102. Definitions. 2
807	806		As used in this subchapter: 3
808	807		(1) "Net-metering customer" has the same meaning as defined in 4
809	808		the Arkansas Cost-Shifting Prevention Act of 2023, § 23 -18-601 et. seq; and 5
810	809		(2) "Net-metering facility" has the same meaning as defined in 6
811	810		the Arkansas Cost-Shifting Prevention Act of 2023, § 23 -18-601 et. seq. 7
812	811		8
813	812		4-88-1103. Net-metering customer protections. 9
814	813		The net-metering customer protections shall include without limitation 10
815	814		the following, a: 11
816	815		(1) Requirement that any person who sells or leases a net -12
817	816		metering facility or who provides a net -metering service to a net -metering 13
818	817		customer under the Arkansas Cost -Shifting Prevention Act of 2023, § 23-18-601 14
819	818		et. seq shall: 15
820	819		(A)(i) Provide a prospective or existing net -metering 16
821	820		customer a minimum of five (5) business days to evaluate a proposal to 17
822	821		construct a net-metering facility to provide all or part of the prospective 18
823	822		or existing net-metering customer's needs for electric energy within a single 19
824	823		electric utility's allocated service territory. 20
825	824		(ii) The proposal to the prospective or existing 21
826	825		net-metering customer shall include: 22
827	826		(a) A description of the system and the 23
828	827		system's placement on the net -metering customer's premises or other location 24
829	828		consistent with the requirements of this subchapter; 25
830	829		(b) A description of the nameplate generating 26
831	830		capacity and expected monthly and annual output of the net -metering facility 27
832	831		in kilowatt hours; 28
833	832		(c) The estimated annual degradation to the 29
834	833		net-metering facility; 30
835	834		(d) An estimated timeline for the installation 31
836	835		of the net-metering facility; 32
837	836		(e) The total cost of the net -metering 33
838	837		facility; 34
839	838		(f) The amounts due at t he signing for and at 35
840	839		the completion of the installation; 36 As Engrossed: S2/22/23 S2/27/23 S3/6/23 SB295
841	840
842	841		22 03-06-2023 13:52:42 CRH142
843	842
844	843
845	844		(g) The payment schedule; 1
846	845		(h) The payback period; 2
847	846		(i) The forecasted savings monthly and annual 3
848	847		bill savings provided by the proposed net -metering facility in dollars based 4
849	848		on the rate structure as defined in § 23 -18-606; 5
850	849		(j) A description of any warranties; 6
851	850		(k) The length of the term of any warranties; 7
852	851		and 8
853	852		(l) Notice that the prospective or existing 9
854	853		net-metering customer may file a complaint with the Attorney Gene ral; 10
855	854		(B) Perform an energy efficiency audit on the potential or 11
856	855		existing net-metering customer's premises and any customer meter locations to 12
857	856		be served by the proposed net -metering facility as part of the proposal to 13
858	857		sell or lease a net-metering facility or provide a net -metering service to a 14
859	858		net-metering customer under the Arkansas Cost -Shifting Prevention Act of 15
860	859		2023, § 23-18-601 et. seq, or inform the prospective or existing net -metering 16
861	860		customer of how to obtain an energy efficiency audit; and 17
862	861		(C) Inform the prospective or existing net -metering 18
863	862		customer of the available energy efficiency measures to address the results 19
864	863		of the audit as part of the proposal to sell or lease a net -metering facility 20
865	864		or provide a net-metering service to a net -metering customer under the 21
866	865		Arkansas Cost-Shifting Prevention Act of 2023, § 23 -18-601 et. seq; 22
867	866		(2) Demonstration to the prospective or existing net -metering 23
868	867		customer that the proposed net -metering facility meets all applicable safety 24
869	868		requirements and sta ndards; and 25
870	869		(3) Demonstration to the prospective or existing net -metering 26
871	870		customer that the person who sells or leases a net -metering facility or who 27
872	871		provides a net metering service to a net metering customer holds: 28
873	872		(A) All required permits to inst all, construct, or operate 29
874	873		a net-metering facility in the state, and, if the governing county, city, or 30
875	874		local authority does not require an electrical inspection, an executed 31
876	875		certification that no electrical inspection or permit is required; and 32
877	876		(B) A bond or other acceptable financial security to 33
878	877		ensure proper maintenance of the net -metering facility and decommissioning of 34
879	878		the net-metering facility. 35
880	879		36 As Engrossed: S2/22/23 S2/27/23 S3/6/23 SB295
881	880
882	881		23 03-06-2023 13:52:42 CRH142
883	882
884	883
885	884		4-88-1104. Enforcement. 1
886	885		Any violation of this subchapter may be enforced under the powers of 2
887	886		the office of the Attorney General under the Arkansas Deceptive Trade 3
888	887		Practices Act, § 4-88-101 et seq., including without limitation all 4
889	888		enforcement powers. 5
890	889		6
891	890		SECTION 3. DO NOT CODIFY. TEMPORARY LANGUAGE. Rules. 7
892	891		(a) The Arkansas Public Service Commission, after notice and hearing, 8
893	892		shall: 9
894	893		(1) Modify the commission rules to conform to this act; and 10
895	894		(2) Submit the commission rules to the Legislative Council by 11
896	895		December 31, 2023. 12
897	896		(b) The commission shall approve modifications to the electric 13
898	897		utilities' rate schedules applicable to net -metering to conform to this act 14
899	898		by December 31, 2023. 15
900	899		16
901	900		SECTION 4. EMERGENCY CLAUSE. It is found and determined by the 17
902	901		General Assembly of the State of Arkansas that delay in the enactment of this 18
903	902		act may result in unj ust, unreasonable, and unduly discriminatory rates; and 19
904	903		that this act is immediately necessary for the protection of Arkansas 20
905	904		ratepayers. Therefore, an emergency is declared to exist, and this act being 21
906	905		immediately necessary for the preservation of the pub lic peace, health, and 22
907	906		safety shall become effective on: 23
908	907		(1) The date of its approval by the Governor; 24
909	908		(2) If the bill is neither approved nor vetoed by the Governor, 25
910	909		the expiration of the period of time during which the Governor may veto the 26
911	910		bill; or 27
912	911		(3) If the bill is vetoed by the Governor and the veto is 28
913	912		overridden, the date the last house overrides the veto. 29
914	913		30
915	914		/s/J. Dismang 31
916	915		32
917	916		33
918		-	~~APPROVED: 3/13/23~~ 34
	917	+	34
919	918		35
920	919		36