A.B. 458 - *AB458* ASSEMBLY BILL NO. 458–ASSEMBLYMEMBER WATTS MARCH 17, 2025 ____________ Referred to Committee on Growth and Infrastructure SUMMARY—Revises provisions governing energy. (BDR 58-228) FISCAL NOTE: Effect on Local Government: No. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to energy; authorizing the users of a solar- powered affordable housing system to participate in net metering; exempting the owner or operator of a solar- powered affordable housing system from certain provisions of law; establishing requirements for a tariff or contract relating to a solar-powered affordable housing system; revising provisions governing the administration of net metering; revising provisions relating to an expanded solar access program which certain electric utilities are required to offer; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law requires each electric utility in this State to offer net metering to 1 customer-generators operating in the service area of the utility. (NRS 704.773) 2 Existing law defines “net metering” to mean measuring the difference between the 3 electricity supplied by a utility and the electricity generated by certain customers 4 which is fed back to the utility. (NRS 704.769) Sections 13 and 14 of this bill 5 authorize the users of a solar-powered affordable housing system to participate in 6 net metering. Sections 2-8 of this bill define certain terms related to solar-powered 7 affordable housing systems. Section 11 of this bill excludes persons who own or 8 operate a solar-powered affordable housing system from the definition of “public 9 utility.” Section 12 of this bill makes a conforming change to make the definitions 10 set forth in sections 2-8 applicable to the provisions of existing law governing net 11 metering. Sections 15 and 16 of this bill revise existing provisions governing net 12 metering to provide for the administration of net metering with respect to solar-13 powered affordable housing systems, including the measuring of net electricity 14 produced or consumed and the awarding of credit for excess electricity produced by 15 a solar-powered affordable housing system. Sections 9 and 10 of this bill establish 16 certain requirements for any tariff or contract which relates to a solar-powered 17 – 2 – - *AB458* affordable housing system. Section 18 of this bill provides that, with certain 18 exceptions, certain provisions governing the rates charged for the provision of 19 electric service by the landlord of a manufactured home park or mobile home park 20 or owner of a company town do not apply to the owner or operator of a solar-21 powered affordable housing system. 22 Existing law requires: (1) certain electric utilities in this State to offer an 23 expanded solar access program to residential customers and to certain 24 nonresidential customers who consume less than 10,000 kilowatt-hours of 25 electricity per month; (2) the Public Utilities Commission of Nevada to adopt 26 certain regulations for the implementation of the expanded solar access program; 27 and (3) an electric utility to submit a plan for the implementation of the expanded 28 solar access program. Under existing law, the customers who are eligible to 29 participate in an expanded solar access program are: (1) low-income residential 30 customers; (2) certain disadvantaged businesses and nonprofit organizations; and 31 (3) certain residential customers who cannot install solar resources on the premises 32 of the customer. In implementing the expanded solar access program, an electric 33 utility is required to: (1) make use of at least a certain number of community-based 34 solar resources; and (2) provide participating low-income residential customers 35 with a lower rate. (NRS 704.7865) 36 Section 17 of this bill: (1) revises the criteria for eligibility so that only low-37 income residential customers are eligible to participate in an expanded solar access 38 program; and (2) adds certain rate reductions for such customers who are supported 39 with certain funding from the Nevada Clean Energy Fund. Section 17 also 40 authorizes such a participating customer to remain continuously enrolled in the 41 program without having to reapply. For community-based solar resources, section 42 17: (1) increases the maximum nameplate capacity from not more than 1 megawatt 43 to not more than 5 megawatts; (2) requires a process for open bidding or requests 44 for proposals for the selection of sites; (3) requires prioritizing the selection of sites 45 that provide resiliency for the electric grid and benefits for the community; and (4) 46 requires construction of additional community-based solar resources in proportion 47 to increased participation in the expanded solar access program. 48 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 704 of NRS is hereby amended by adding 1 thereto the provisions set forth as sections 2 to 10, inclusive, of this 2 act. 3 Sec. 2. “Active affordability covenant” means a covenant, 4 condition or restriction contained in a deed, contract or other legal 5 instrument which affects the transfer, sale or any other interest in 6 real property, which: 7 1. Establishes a period during which the covenant, condition 8 or restriction is active; and 9 2. During the period described in subsection 1, limits the 10 amount of any rent and utility charges that may be charged to a 11 natural person or household: 12 (a) Who has an income of: 13 – 3 – - *AB458* (1) Not more than 80 percent of the area median income 1 based on the guidelines published by the United States Department 2 of Housing and Urban Development; or 3 (2) Not more than 150 percent of the federally designated 4 level signifying poverty as provided in the most recent federal 5 poverty guidelines published in the Federal Register by the United 6 States Department of Health and Human Services; or 7 (b) Which qualifies as a low-income family pursuant to 42 8 U.S.C. § 1437a(b)(2). 9 Sec. 3. “Allocation” means a portion of the capacity from or 10 the electricity that is produced by a solar-powered affordable 11 housing system that is attributed to one of its users. 12 Sec. 4. “Net metering credits” means the credit that the 13 utility is required to provide to a customer-generator for each 14 kilowatt-hour of excess electricity governed by paragraph (c) of 15 subsection 2 of NRS 704.775 that is generated by the customer-16 generator. 17 Sec. 5. “Qualified low-income residential building” means a 18 residential rental building which participates in: 19 1. A federal covered housing program, as defined in 34 20 U.S.C. § 12491(a)(3), and is wholly or partially financed by or 21 otherwise connected to a grant or program under: 22 (a) Section 202 of the Housing Act of 1959, as amended, 12 23 U.S.C. § 1701q; 24 (b) Section 811 or sections 851 to 863, inclusive, of the 25 Cranston-Gonzalez National Affordable Housing Act, as 26 amended, 42 U.S.C. § 8013 or §§ 12901 et seq.; 27 (c) The McKinney-Vento Homeless Assistance Act, as 28 amended, 42 U.S.C. §§ 11360 et seq., including, without 29 limitation, the Emergency Solutions Grants Program, Continuum 30 of Care Program and Rural Housing Stability Assistance 31 Program; 32 (d) The HOME Investment Partnerships Act, 42 U.S.C. §§ 33 12741 et seq.; 34 (e) Section 8 or 9 of the United States Housing Act of 1937, 42 35 U.S.C. § 1437f or 1437g, and any regulations adopted pursuant 36 thereto, or pursuant to any successor program, including, without 37 limitation, programs for project-based rental assistance, moderate 38 rehabilitation and moderate rehabilitation single-room 39 occupancy; 40 (f) A low-income housing credit received pursuant to 26 U.S.C. 41 § 42; 42 (g) Section 1338 of the Federal Housing Enterprises Financial 43 Safety and Soundness Act of 1992, 12 U.S.C. § 4568; 44 – 4 – - *AB458* (h) The following programs administered by the Secretary of 1 Veterans Affairs: 2 (1) The programs for comprehensive services to homeless 3 veterans set forth in 38 U.S.C. §§ 2011-2016; 4 (2) The program to assist homeless veterans set forth in 38 5 U.S.C. § 2061; and 6 (3) The programs to provide financial assistance and 7 supportive services for very low-income veteran families in 8 permanent housing set forth in 38 U.S.C. §§ 2041 et seq.; 9 2. A housing assistance program administered by the United 10 States Department of Agriculture under Title V of the federal 11 Housing Act of 1949, Public Law 81-171, as amended, and is 12 wholly or partially financed by or otherwise connected to a grant 13 or program under section 514, 515, 516, 521, 533 or 538 of the 14 Housing Act of 1949, 42 U.S.C. § 1484, 1485, 1486, 1490a, 1490m 15 or 1490p-2, including, without limitation, programs for 16 multifamily preservation and revitalization or multifamily housing 17 rental assistance; 18 3. A housing program administered by a tribally designated 19 housing entity, as defined in 25 U.S.C. § 4103(22); or 20 4. Such other affordable housing programs as federal, state 21 or local law may provide. 22 Sec. 6. “Qualified low-income residential building project” 23 means an energy facility that: 24 1. Is installed on the premises of a qualified low-income 25 residential building; and 26 2. For which the financial benefits of the electricity produced 27 by the energy facility are allocated equitably among the occupants 28 of the dwelling units of the qualified low-income residential 29 building. 30 Sec. 7. “Qualified multifamily affordable housing property”: 31 1. Means a multifamily residential property with at least five 32 rental housing units or, for a housing program administered by a 33 tribally designated housing entity, as defined in 25 U.S.C. § 34 4103(22), two rental housing units that: 35 (a) Contains one or more qualified low-income residential 36 buildings: 37 (1) That are part of a single low-income housing 38 development; and 39 (2) In which not less than 80 percent of the rental housing 40 units have active affordability covenants; and 41 (b) Consists of tenant housing units, which may be 42 individually metered and the occupants of which may maintain 43 individual customer accounts with the utility, along with common 44 – 5 – - *AB458* areas served by one or more common meters under the customer 1 account of the property owner. 2 2. In the case of a mixed-use property, does not include any 3 independent commercial units on the premises that are not 4 appurtenant to the housing use. 5 Sec. 8. “Solar-powered affordable housing system” means 6 an energy system for the generation of electricity that: 7 1. Uses renewable energy as its primary source of energy to 8 generate electricity; 9 2. Has a generating capacity of not more than 1 megawatt as 10 measured in alternating current; 11 3. Is a qualified low-income residential building project that 12 is located on a qualified multifamily affordable housing property; 13 4. Operates in parallel with the utility’s transmission and 14 distribution facilities; 15 5. Is owned by the landlord or another third party that 16 equitably allocates the capacity and associated production of the 17 energy system to each of the individually metered units or common 18 areas within the qualified multifamily affordable housing 19 property; 20 6. Is intended primarily to offset part or all of the qualified 21 multifamily affordable housing property’s requirements for 22 electricity, subject to the following maximum allocations: 23 (a) In the case of common-area meters, a capacity that is sized 24 to supply not more than 100 percent of the metered historic usage 25 or reasonably expected future usage; and 26 (b) In the case of meters serving tenant units, a capacity of not 27 more than 25 kilowatts per unit; and 28 7. Is net metered by the utility by allocating net metering 29 credits either to common-area meters or to individually metered 30 accounts, or both, that receive an allocation, according to the 31 allocation schedule provided by the owner of the energy system, 32 without requiring the energy system to be physically 33 interconnected with the meter of each user. 34 Sec. 9. Any tariff or contract which relates to a solar-35 powered affordable housing system must include, without 36 limitation: 37 1. The particular limitations and responsibilities of a 38 customer-generator who is an owner of a solar-powered 39 affordable housing system, a customer-generator who is a user of 40 a solar-powered affordable housing system and the utility. 41 2. A provision authorizing the allocation by the owner of a 42 solar-powered affordable housing system, in consultation with the 43 owner of the qualified multifamily affordable housing property 44 where the solar-powered affordable housing system is located, of 45 – 6 – - *AB458* the financial benefits of the electricity produced by the solar-1 powered affordable housing system in a manner which ensures 2 net metering credits are equitably allocated among the tenant 3 units: 4 (a) As a percentage of system production in proportion to the 5 size of each tenant unit measured in square feet; or 6 (b) In equal proportion to all tenant units, regardless of the 7 size of each tenant unit. 8 An equitable allocation of the financial benefits of the 9 electricity produced by the solar-powered affordable housing 10 system to the occupants does not preclude any allocation of the 11 generation output to common-area accounts. 12 3. The manner in which the owner of a solar-powered 13 affordable housing system may update the utility on the proper 14 allocation of capacity and its associated production to customer-15 generators of the solar-powered affordable housing system, which 16 must: 17 (a) Ensure that not less than 80 percent of the total allocation 18 is reserved for tenant units; 19 (b) Require the owner to submit updates at least annually and 20 more frequently if necessary to reflect changes in occupancy or 21 usage; and 22 (c) Require the utility, in the case of an allocation of capacity 23 to any tenant units which are vacant, to provide the owner the 24 option to designate the unallocated net metering credits to: 25 (1) The account of the owner; 26 (2) A common-area account; or 27 (3) In equal proportion to all tenant units which are not 28 vacant. 29 4. The manner in which a utility is required to meter and bill 30 customer-generators who are allocated shares of the capacity of a 31 solar-powered affordable housing system by way of the provision 32 of net metering credits on the bill of a customer-generator. 33 5. Provisions governing the interconnection of a solar-34 powered affordable housing system to the system of the utility 35 without requiring the meters of individual users, common-area 36 meters or owners of the solar-powered affordable housing system 37 to be directly interconnected to the solar-powered affordable 38 housing system, including, without limitation, fees for 39 interconnections, procedures and timelines that are consistent 40 with the procedures and timelines established for other net 41 metering systems. 42 6. Provisions for the credit of each kilowatt-hour of excess 43 electricity, for a system that has a capacity of: 44 (a) Not more than 25 kilowatts; and 45 – 7 – - *AB458* (b) More than 25 kilowatts but not more than 1 megawatt. 1 7. Provisions governing fees or other charges which the 2 utility may impose on an owner or user of a solar-powered 3 affordable housing system, which: 4 (a) Must prohibit the utility from imposing any: 5 (1) Monthly fee or charge on an owner or user of a solar-6 powered affordable housing system for the provision of net 7 metering credits. 8 (2) Fee or charge on a user of a solar-powered affordable 9 housing system to initiate the allocation of net metering credits. 10 (3) Fee or charge on the owner of a qualified multifamily 11 affordable housing property, if the person is not the owner of the 12 solar-powered affordable housing system, for the application to 13 install a net metering system or to initiate the allocation of net 14 metering credits. 15 (4) Fee or charge for a change to the occupancy of a tenant 16 unit, unless there are two or more such changes to the same 17 tenant unit in a 12-month period for which a fee or charge may be 18 imposed pursuant to subparagraph (1) of paragraph (b). 19 (b) May impose: 20 (1) For the second and any subsequent change to the 21 occupancy of the same tenant unit in a 12-month period, a fee or 22 charge for remote connection of the tenant unit to the system 23 which is associated with establishing service, billed to the owner of 24 the solar-powered affordable housing system. 25 (2) A one-time fee or charge on the owner of a solar-26 powered affordable housing system to initiate the allocation of net 27 metering credits for the solar-powered affordable housing system, 28 in an amount which represents the lesser of $25 for each user or 29 $500 for each solar-powered affordable housing system. 30 8. Provisions governing the manner in which the utility will 31 provide aggregated and anonymized data relating to net metering 32 credits to the owner of the solar-powered affordable housing 33 system, which must require the utility to provide such data on an 34 annual basis and in a form which is sufficient to enable the owner 35 to verify that users of the solar-powered affordable housing system 36 are provided net metering credits accurately. 37 Sec. 10. For any tariff or tariffs which relate to a solar-38 powered affordable housing system described in section 9 of this 39 act, eligibility must be limited to a total capacity of not more than 40 50 megawatts. 41 Sec. 11. NRS 704.021 is hereby amended to read as follows: 42 704.021 “Public utility” or “utility” does not include: 43 1. Persons engaged in the production and sale of natural gas, 44 other than sales to the public, or engaged in the transmission of 45 – 8 – - *AB458* natural gas other than as a common carrier transmission or 1 distribution line or system. 2 2. Persons engaged in the business of furnishing, for 3 compensation, water or services for the disposal of sewage, or both, 4 to persons within this State if: 5 (a) They serve 25 persons or less; and 6 (b) Their gross sales for water or services for the disposal of 7 sewage, or both, amounted to $25,000 or less during the 8 immediately preceding 12 months. 9 3. Persons not otherwise engaged in the business of furnishing, 10 producing or selling water or services for the disposal of sewage, or 11 both, but who sell or furnish water or services for the disposal of 12 sewage, or both, as an accommodation in an area where water or 13 services for the disposal of sewage, or both, are not available from a 14 public utility, cooperative corporations and associations or political 15 subdivisions engaged in the business of furnishing water or services 16 for the disposal of sewage, or both, for compensation, to persons 17 within the political subdivision. 18 4. Persons who are engaged in the production and sale of 19 energy, including electricity, to public utilities, cities, counties or 20 other entities which are reselling the energy to the public. 21 5. Persons who are subject to the provisions of NRS 590.465 to 22 590.645, inclusive. 23 6. Persons who are engaged in the sale or use of special fuel as 24 defined in NRS 366.060. 25 7. Persons who provide water from water storage, transmission 26 and treatment facilities if those facilities are for the storage, 27 transmission or treatment of water from mining operations. 28 8. Persons who are video service providers, as defined in NRS 29 711.151, except for those operations of the video service provider 30 which consist of providing a telecommunication service to the 31 public, in which case the video service provider is a public utility 32 only with regard to those operations of the video service provider 33 which consist of providing a telecommunication service to the 34 public. 35 9. Persons who own or operate a net metering system described 36 in paragraph (c) or (d) of subsection 1 of NRS 704.771. 37 10. Persons who own or operate a net metering system or 38 systems described in paragraph (a) of subsection 1 of NRS 704.771 39 and deliver electricity to multiple persons, units or spaces on the 40 premises if: 41 (a) The electricity is delivered only to persons, units or spaces 42 located on the premises on which the net metering system or 43 systems are located; 44 – 9 – - *AB458* (b) The residential or commercial units or spaces do not have 1 individual meters measuring electricity use by an individual unit or 2 space; and 3 (c) Persons occupying the individual units or spaces are not 4 charged for electricity based upon volumetric usage at the person’s 5 individual unit or space. 6 11. Persons who for compensation own or operate individual 7 systems which use renewable energy to generate electricity and sell 8 the electricity generated from those systems to not more than one 9 customer of the public utility per individual system if each 10 individual system is: 11 (a) Located on the premises of another person; 12 (b) Used to produce not more than 150 percent of that other 13 person’s requirements for electricity on an annual basis for the 14 premises on which the individual system is located; and 15 (c) Not part of a larger system that aggregates electricity 16 generated from renewable energy for resale or use on premises other 17 than the premises on which the individual system is located. 18 As used in this subsection, “renewable energy” has the meaning 19 ascribed to it in NRS 704.7715. 20 12. Persons who own, control, operate or manage a facility that 21 supplies electricity only for use to charge electric vehicles. 22 13. Any plant or equipment that is used by a data center to 23 produce, deliver or furnish electricity at agreed-upon prices for or to 24 persons on the premises of the data center for the sole purpose of 25 those persons storing, processing or distributing data, but only with 26 regard to those operations which consist of providing electric 27 service. As used in this subsection, “data center” has the meaning 28 ascribed to it in NRS 360.754. 29 Sec. 12. NRS 704.767 is hereby amended to read as follows: 30 704.767 As used in NRS 704.766 to 704.776, inclusive, and 31 sections 2 to 10, inclusive, of this act, unless the context otherwise 32 requires, the words and terms defined in NRS 704.7675 to 704.772, 33 inclusive, and sections 2 to 8, inclusive, of this act have the 34 meanings ascribed to them in those sections. 35 Sec. 13. NRS 704.768 is hereby amended to read as follows: 36 704.768 “Customer-generator” means a user of a net metering 37 system [.] , including, without limitation: 38 1. The owner of a solar-powered affordable housing system; 39 and 40 2. Any user of a solar-powered affordable housing system 41 that includes, without limitation, tenant meters and common-area 42 meters that receive an allocation of the capacity and associated 43 production of the solar-powered affordable housing system, 44 – 10 – - *AB458* regardless of the legal ownership of the solar-powered affordable 1 housing system. 2 Sec. 14. NRS 704.771 is hereby amended to read as follows: 3 704.771 1. “Net metering system” means: 4 (a) A facility or energy system for the generation of electricity 5 that: 6 (1) Uses renewable energy as its primary source of energy to 7 generate electricity; 8 (2) Has a generating capacity of not more than 1 megawatt; 9 (3) Is located on the customer-generator’s premises; 10 (4) Operates in parallel with the utility’s transmission and 11 distribution facilities; and 12 (5) Is intended primarily to offset part or all of the customer-13 generator’s requirements for electricity; 14 (b) A facility or energy system for the generation of electricity 15 that: 16 (1) Uses waterpower as its primary source of energy to 17 generate electricity; 18 (2) Is located on property owned by the customer-generator; 19 (3) Has a generating capacity of not more than 1 megawatt; 20 (4) Generates electricity that is delivered to the transmission 21 and distribution facilities of the utility; and 22 (5) Is intended primarily to offset all or part of the customer-23 generator’s requirements for electricity on that property or 24 contiguous property owned by the customer-generator; [or] 25 (c) A facility or energy system for the generation of electricity: 26 (1) Which uses wind power as its primary source of energy 27 to generate electricity; 28 (2) Which is located on property owned or leased by an 29 institution of higher education in this State; 30 (3) Which has a generating capacity of not more than 1 31 megawatt; 32 (4) Which operates in parallel with the utility’s transmission 33 and distribution facilities; 34 (5) Which is intended primarily to offset all or part of the 35 customer-generator’s requirements for electricity on that property or 36 on contiguous property owned or leased by the customer-generator; 37 (6) Which is used for research and workforce training; and 38 (7) The construction or installation of which is commenced 39 on or before December 31, 2011, and is completed on or before 40 December 31, 2012 [.] ; or 41 (d) A solar-powered affordable housing system. 42 2. The term does not include a facility or energy system for the 43 generation of electricity , other than a solar-powered affordable 44 – 11 – - *AB458* housing system, which has a generating capacity that exceeds the 1 greater of: 2 (a) The limit on the demand that the class of customer of the 3 customer-generator may place on the system of the utility; or 4 (b) One hundred percent of the customer-generator’s annual 5 requirements for electricity. 6 Sec. 15. NRS 704.773 is hereby amended to read as follows: 7 704.773 1. A utility shall offer net metering in accordance 8 with the provisions of NRS 704.766 to 704.776, inclusive, and 9 sections 2 to 10, inclusive, of this act to the customer-generators 10 operating within its service area. 11 2. If the net metering system of a customer-generator who 12 accepts the offer of a utility for net metering has a capacity of not 13 more than 25 kilowatts, the utility: 14 (a) Shall offer to make available to the customer-generator an 15 energy meter that is capable of registering the flow of electricity in 16 two directions. 17 (b) May, at its own expense and with the written consent of the 18 customer-generator, install one or more additional meters to monitor 19 the flow of electricity in each direction. 20 (c) Except as otherwise provided in subsection 7, shall not 21 charge the customer-generator any fee or charge that is different 22 than that charged to other customers of the utility in the rate class to 23 which the customer-generator would belong if the customer-24 generator did not have a net metering system. 25 (d) Shall not reduce the minimum monthly charge of the 26 customer-generator based on the electricity generated by the 27 customer-generator and fed back to the utility. 28 3. If the net metering system of a customer-generator who 29 accepts the offer of a utility for net metering has a capacity of more 30 than 25 kilowatts, the utility: 31 (a) May require the customer-generator or, if the net metering 32 system is a solar-powered affordable housing system, the owner of 33 the solar-powered affordable housing system to install at its own 34 cost: 35 (1) An energy meter that is capable of measuring generation 36 output and customer load; and 37 (2) Any upgrades to the system of the utility that are required 38 to make the net metering system compatible with the system of the 39 utility. 40 (b) Except as otherwise provided in paragraph (d) and 41 subsection 7, shall not charge the customer-generator any fee or 42 charge that is different than that charged to other customers of the 43 utility in the rate class to which the customer-generator would 44 belong if the customer-generator did not have a net metering system, 45 – 12 – - *AB458* including, without limitation, customer, demand and facility 1 charges. 2 (c) Shall not reduce the minimum monthly charge of the 3 customer-generator based on the electricity generated by the 4 customer-generator and fed back to the utility. 5 (d) Shall not charge the customer-generator any standby charge. 6 4. At the time of installation or upgrade of any portion of a net 7 metering system, the utility must allow a customer-generator or 8 owner of the solar-powered affordable housing system, if 9 applicable, governed by subsection 3 to pay the entire cost of the 10 installation or upgrade of the portion of the net metering system. 11 5. Except as otherwise provided in subsections 2, 3 and 6 and 12 NRS 704.7732, the utility shall not for any purpose assign a 13 customer-generator to a rate class other than the rate class to which 14 the customer-generator would belong if the customer-generator did 15 not have a net metering system, including, without limitation, for the 16 purpose of any fee or charge. 17 6. If the net metering system of a customer-generator is a net 18 metering system described in paragraph (b) or (c) of subsection 1 of 19 NRS 704.771 and: 20 (a) The system is intended primarily to offset part or all of the 21 customer-generator’s requirements for electricity on property 22 contiguous to the property on which the net metering system is 23 located; and 24 (b) The customer-generator sells or transfers his or her interest 25 in the contiguous property, 26 the net metering system ceases to be eligible to participate in net 27 metering. 28 7. A utility shall assess against a customer-generator: 29 (a) If applicable, the universal energy charge imposed pursuant 30 to NRS 702.160; and 31 (b) Any charges imposed pursuant to chapter 701B of NRS or 32 NRS 704.7827 or 704.785 which are assessed against other 33 customers in the same rate class as the customer-generator. 34 For any such charges calculated on the basis of a kilowatt-hour 35 rate, the customer-generator must only be charged with respect to 36 kilowatt-hours of energy delivered by the utility to the customer-37 generator. 38 8. The Commission and the utility must allow a customer-39 generator who accepts the offer of the utility for net metering to 40 continue net metering pursuant to NRS 704.766 to 704.776, 41 inclusive, and sections 2 to 10, inclusive, of this act at the location 42 at which the net metering system is originally installed for 20 years. 43 For the purposes of this subsection, “to continue net metering” 44 includes, without limitation: 45 – 13 – - *AB458* (a) Retaining the percentage set forth in subsection 3 of NRS 1 704.7732 to be used to determine the credit for electricity governed 2 by paragraph (c) of subsection 2 of NRS 704.775, which is 3 applicable to the customer-generator; and 4 (b) Replacing the originally installed net metering system, as 5 needed, at any time before 20 years after the date of the installation 6 of the originally installed net metering system. 7 9. The Commission shall adopt regulations prescribing the 8 form and substance for a net metering tariff and a standard net 9 metering contract. The regulations must include, without limitation: 10 (a) The particular provisions, limitations and responsibilities of 11 a customer-generator which must be included in a net metering tariff 12 with regard to: 13 (1) Metering equipment; 14 (2) Net energy metering and billing; and 15 (3) Interconnection, 16 based on the allowable size of the net metering system. 17 (b) The particular provisions, limitations and responsibilities of 18 a customer-generator and the utility which must be included in a 19 standard net metering contract. 20 (c) A timeline for processing applications and contracts for net 21 metering applicants. 22 (d) Any other provisions the Commission finds necessary to 23 carry out the provisions of NRS 704.766 to 704.776, inclusive [.] , 24 and sections 2 to 10, inclusive, of this act. 25 Sec. 16. NRS 704.775 is hereby amended to read as follows: 26 704.775 1. The billing period for net metering must be a 27 monthly period. 28 2. The net energy measurement must be calculated in the 29 following manner: 30 (a) The utility shall measure, in kilowatt-hours, the net 31 electricity produced or consumed during the billing period [,] : 32 (1) For a net metering system that serves only one meter, in 33 accordance with normal metering practices. 34 (2) For a solar-powered affordable housing system that 35 serves multiple meters, by measuring the total generation output of 36 the solar-powered affordable housing system using a production 37 meter. The utility shall, for capacity allocations, calculate the total 38 kilowatt-hour output associated with each user’s allocated share 39 of the solar-powered affordable housing system’s production and 40 deduct the allocated total kilowatt-hour output from each user’s 41 total measured consumption. 42 (b) If the electricity supplied by the utility exceeds the electricity 43 generated by the customer-generator , or the customer-generator’s 44 allocated share of the electricity generated by a solar-powered 45 – 14 – - *AB458* affordable housing system, which is fed back to the utility during 1 the billing period, the customer-generator must be billed for the net 2 electricity supplied by the utility. 3 (c) Except as otherwise provided in NRS 704.7732, if the 4 electricity generated by the customer-generator , or the customer-5 generator’s allocated share of the electricity generated by a solar-6 powered affordable housing system, which is fed back to the utility 7 exceeds the electricity supplied by the utility during the billing 8 period: 9 (1) Neither the utility nor the customer-generator is entitled 10 to compensation for the electricity provided to the other during the 11 billing period. 12 (2) The excess electricity which is fed back to the utility 13 during the billing period is carried forward to the next billing period 14 as an addition to the kilowatt-hours generated by the customer-15 generator in that billing period. If the customer-generator is billed 16 for electricity pursuant to a time-of-use rate schedule, the excess 17 electricity carried forward must be added to the same time-of-use 18 period as the time-of-use period in which it was generated unless the 19 subsequent billing period lacks a corresponding time-of-use period. 20 In that case, the excess electricity carried forward must be 21 apportioned evenly among the available time-of-use periods. 22 (3) Excess electricity may be carried forward to subsequent 23 billing periods indefinitely, but a customer-generator is not entitled 24 to receive compensation for any excess electricity that remains if: 25 (I) The net metering system ceases to operate or is 26 disconnected from the utility’s transmission and distribution 27 facilities; 28 (II) The customer-generator ceases to be a customer of 29 the utility at the premises served by the net metering system; or 30 (III) The customer-generator transfers the net metering 31 system to another person. 32 (4) The value of the excess electricity must not be used to 33 reduce any other fee or charge imposed by the utility. 34 3. If the cost of purchasing and installing a net metering system 35 was paid for: 36 (a) In whole or in part by a utility, the electricity generated by 37 the net metering system shall be deemed to be electricity that the 38 utility generated or acquired from a renewable energy system for the 39 purposes of complying with its portfolio standard pursuant to NRS 40 704.7801 to 704.7828, inclusive. 41 (b) Entirely by a customer-generator, including, without 42 limitation, a customer-generator that is the owner of a solar-43 powered affordable housing system, the Commission shall issue to 44 the customer-generator portfolio energy credits for use within the 45 – 15 – - *AB458* system of portfolio energy credits adopted by the Commission 1 pursuant to NRS 704.7821 and 704.78213 equal to the electricity 2 generated by the net metering system. 3 4. A bill for electrical service is due at the time established 4 pursuant to the terms of the contract between the utility and the 5 customer-generator. 6 Sec. 17. NRS 704.7865 is hereby amended to read as follows: 7 704.7865 1. An electric utility shall offer an expanded solar 8 access program to low-income eligible customers within its service 9 area in accordance with the provisions of this section. The size of 10 the expanded solar access program shall not exceed: 11 (a) For an electric utility that primarily serves densely populated 12 counties, a total capacity of 240,000 megawatt-hours; and 13 (b) For an electric utility that primarily serves less densely 14 populated counties, a total capacity of 160,000 megawatt-hours. 15 2. The Commission shall adopt regulations establishing 16 standards for the expanded solar access program. The regulations 17 must: 18 (a) Advance the development of solar energy resources in this 19 State, including, without limitation, utility scale and community-20 based solar resources; 21 (b) Provide for the expanded solar access program to include a 22 reasonable mixture of community-based solar resources and utility 23 scale solar resources; 24 (c) For community-based solar resources: 25 (1) Require a process for open bidding or requests for 26 proposals for the selection of sites for community-based solar 27 resources; 28 (2) Prioritize the selection of sites for community-based 29 solar resources that provide resiliency for the electric grid and 30 benefits for the community; and 31 (3) Require construction of additional community-based 32 solar resources in proportion to increased participation in the 33 expanded solar access program; 34 (d) Provide a plan for community participation in the siting and 35 naming of community-based solar resources; 36 [(d)] (e) Provide for solar workforce innovations and 37 opportunity programs related to the construction, maintenance and 38 operation of solar resources, including opportunities for workforce 39 training, apprenticeships or other job opportunities at community-40 based solar resources; 41 [(e)] (f) Provide for equitably broadened access to solar energy; 42 [(f)] (g) Provide for the creation of an expanded solar access 43 program rate for participating low-income eligible customers that: 44 – 16 – - *AB458* (1) Is based, among other factors, on a new utility scale solar 1 resource accepted by the Commission in an order issued pursuant to 2 NRS 704.751, as approved by the Commission; 3 (2) Is a fixed rate that replaces the base tariff energy rate and 4 deferred accounting adjustment charged by the electric utility for 5 participating low-income eligible customers and which is adjusted 6 in accordance with the Commission’s quarterly calculations; 7 (3) [For low-income eligible customers, provides] Provides 8 for a lower rate, the cost of which must be allocated across all of the 9 rate classes of the utility; and 10 (4) [For eligible customers who are not low-income eligible 11 customers, provides stability and predictability and the opportunity 12 for a lower rate; and 13 (5)] Includes [for all participating customers] any other 14 applicable charges including, without limitation, the universal 15 energy charge, franchise fees, the renewable energy program rate 16 and base tariff general rates, except that the Commission [may] : 17 (I) May reduce one or more of these charges for 18 participating low-income eligible customers to ensure that such 19 customers receive a lower rate pursuant to subparagraph (3); and 20 (II) For a participating low-income eligible customer 21 who is supported with specific funding from the Nevada Clean 22 Energy Fund established pursuant to NRS 701B.985 relating to a 23 Solar for All program, shall reduce the base tariff general rate by 24 20 percent; 25 [(g)] (h) Establish a process for identifying noncontiguous 26 geographic locations for community-based solar resources which, to 27 the extent practicable, must be located in communities with higher 28 levels of low-income eligible customers; 29 [(h)] (i) Provide for the use of at least one utility scale solar 30 resource and at least three but not more than ten community-based 31 solar resources within the service territory of the electric utility; 32 [(i)] (j) Require not less than 50 percent of the employees 33 engaged or anticipated to be engaged in construction of community-34 based solar resources to be residents of this State, which residency 35 may be demonstrated, without limitation, by a notarized statement 36 of the employee that he or she is a resident of this State; 37 [(j)] (k) Provide for a mechanism for the host sites of 38 community-based solar resources to receive compensation from the 39 utility for the use of such site; 40 [(k)] (l) Provide for the use of a combination of new and other 41 renewable energy facilities, which may be either utility scale or 42 community-based solar resources, that were submitted to the 43 Commission for approval after May 1, 2018, and that were not 44 placed into operation before April 1, 2020; 45 – 17 – - *AB458* [(l)] (m) Provide for an application and selection process for 1 low-income eligible customers to participate in the program [;] , 2 which: 3 (1) Must authorize a customer who is selected to participate 4 in the program to remain continuously enrolled in the program 5 until the customer withdraws or is terminated from participation; 6 and 7 (2) Must not require a continuously enrolled customer to 8 reapply, recertify or renew participation in the program or 9 participate in any selection lottery; 10 [(m)] (n) Ensure reasonable and equitable participation by low-11 income eligible customers within the service area of the electric 12 utility; 13 [(n)] (o) Ensure that low-income eligible customers are able to 14 participate in the program regardless of whether the customer owns, 15 rents or leases the customer’s premises; 16 [(o) Require that: 17 (1) Twenty-five percent of the capacity of the program, as 18 provided in subsection 1, be reserved for low-income eligible 19 customers; 20 (2) Twenty-five percent of the capacity of the program, as 21 provided in subsection 1, be reserved for disadvantaged businesses 22 and nonprofit organizations; and 23 (3) Fifty percent of the capacity of the program, as provided 24 in subsection 1, be reserved for eligible customers who are fully 25 bundled residential customers who own, rent or lease their residence 26 and who certify in a statement which satisfies the requirements 27 established by the Commission pursuant to paragraph (p) that they 28 cannot install solar resources on their premises;] and 29 (p) [Establish the requirements for a fully bundled residential 30 customer to certify that he or she cannot install solar resources on 31 his or her premises; and 32 (q)] Establish standards for the form, content and manner of 33 submission of an electric utility’s plan for implementing the 34 expanded solar access program. 35 3. An electric utility shall file a plan for implementing the 36 expanded solar access program in accordance with the regulations 37 adopted by the Commission pursuant to subsection 2. 38 4. The Commission shall review the plan for the 39 implementation of the expanded solar access program submitted 40 pursuant to subsection 3 and issue an order approving, with or 41 without modifications, or denying the plan within 210 days. The 42 Commission may approve the plan if it finds that the proposed 43 expanded solar access program complies with the regulations 44 adopted by the Commission pursuant to subsection 2. 45 – 18 – - *AB458* 5. In administering the provisions of this section, the electric 1 utility and the Commission shall establish as the preferred sites for 2 utility scale development of solar energy resources pursuant to this 3 section brownfield sites and land designated by the Secretary of the 4 Interior as Solar Energy Zones and held by the Bureau of Land 5 Management. 6 6. As used in this section: 7 (a) “Brownfield site” has the meaning ascribed to it in 42 U.S.C. 8 § 9601. 9 (b) “Community-based solar resource” means a solar resource 10 which has a nameplate capacity of not more than [1 megawatt] 5 11 megawatts and is owned and operated by the electric utility and 12 connected to and used as a component of the distribution system of 13 the electric utility. 14 (c) [“Disadvantaged business” means a business for which: 15 (1) Fifty-one percent or more of the owners are women, 16 veterans, members of a racial or ethnic minority group or otherwise 17 part of a traditionally underrepresented group; and 18 (2) None of the owners has a net worth of more than 19 $250,000, not including the equity held in the business or in a 20 primary residence. 21 (d)] “Electric utility” has the meaning ascribed to it in 22 NRS 704.187. 23 [(e)] (d) “Electric utility that primarily serves densely populated 24 counties” has the meaning ascribed to it in NRS 704.110. 25 [(f)] (e) “Electric utility that primarily serves less densely 26 populated counties” has the meaning ascribed to it in NRS 704.110. 27 [(g) “Eligible customer” means: 28 (1) A fully bundled general service customer; or 29 (2) A fully bundled residential customer of a utility. 30 (h)] (f) “Fully bundled residential customer” means a customer 31 of an electric utility who receives energy, transmission, distribution 32 and ancillary services from an electric utility [. 33 (i) “Fully bundled general service customer” means a fully 34 bundled customer who is a nonresidential customer with a kilowatt-35 hour consumption that does not exceed 10,000 kilowatt-hours per 36 month. 37 (j) “Fully bundled residential customer” means a fully bundled 38 customer who] and is a single-family or a multifamily residential 39 customer. 40 [(k)] (g) “Low-income eligible customer” means a natural 41 person or household who is a fully bundled residential customer of a 42 utility and has an income of not more than 80 percent of the area 43 median income based on the guidelines published by the United 44 States Department of Housing and Urban Development. 45 – 19 – - *AB458* [(l)] (h) “Solar Energy Zone” means an area identified and 1 designated by the Bureau of Land Management as an area well-2 suited for utility-scale production of solar energy, and where the 3 Bureau of Land Management will prioritize solar energy and 4 associated transmission infrastructure development. 5 [(m)] (i) “Solar resource” means a facility or energy system that 6 uses a solar photovoltaic device to generate electricity. 7 [(n)] (j) “Solar workforce innovations and opportunity program” 8 means a workforce education, training and job placement program 9 developed by the Department of Employment, Training and 10 Rehabilitation and its appropriate regional industry or sector 11 partnership, if applicable, in conjunction with potential employers 12 and community stakeholders. 13 [(o)] (k) “Utility scale solar resource” means a solar resource 14 which has a nameplate capacity of at least 50 megawatts and is 15 interconnected directly to a substation of the electric utility through 16 a generation step-up transformer. 17 Sec. 18. NRS 704.940 is hereby amended to read as follows: 18 704.940 1. In a manufactured home park, mobile home park 19 or company town where the landlord or owner is billed by a gas or 20 electric utility or an alternative seller and in turn charges the tenants 21 or occupants of the dwellings for the service provided by the utility 22 or alternative seller, and the park or town: 23 (a) Is equipped with individual meters for each lot, the landlord 24 or owner shall not charge a tenant or occupant for that service at a 25 rate higher than the rate paid by the landlord or owner. 26 (b) Is not equipped with individual meters for each lot, the 27 landlord or owner shall prorate the cost of the service equally among 28 the tenants of the park or occupants of the dwellings who use the 29 service, but the prorated charges must not exceed in the aggregate 30 the cost of the service to the landlord or owner. 31 2. In a manufactured home park, mobile home park or 32 company town that: 33 (a) Is equipped with individual water meters for each lot, the 34 individual meters must be read and billed by the purveyor of the 35 water. 36 (b) Is not equipped with individual water meters for each lot and 37 the landlord or owner is billed by the purveyor of the water and in 38 turn charges the tenants or occupants of the dwellings for the service 39 provided by the purveyor, the landlord or owner shall prorate the 40 cost of the service equally among the tenants of the park or 41 occupants of the dwellings who use the service, but the prorated 42 charges must not exceed in the aggregate the cost of the service to 43 the landlord or owner. 44 – 20 – - *AB458* The landlord or owner of a manufactured home park or mobile 1 home park that converts from a master-metered water system to 2 individual water meters for each mobile home lot shall not charge or 3 receive any fee, surcharge or rent increase to recover from the 4 landlord’s or owner’s tenants the costs of the conversion. The owner 5 of a company town that is not equipped with individual water meters 6 shall not convert from the master-metered water system to 7 individual water meters. 8 3. To the extent that the cost of providing a utility service to 9 the common area of a manufactured home park, mobile home park 10 or company town can be identified, the landlord or owner may not 11 recover the cost of the utility service provided to the common area 12 by directly charging a tenant or the occupant of a dwelling for those 13 services. 14 4. The landlord of a manufactured home park or mobile home 15 park or owner of a company town may assess and collect a charge to 16 reimburse the landlord or owner for the actual cost of the service 17 charge the landlord or owner is required to pay to a water utility 18 serving the park or town. If the landlord or owner collects such a 19 charge, the landlord or owner shall prorate the actual cost of the 20 service charge to the tenants or occupants of dwellings who use 21 the service. The landlord or owner shall not collect more than the 22 aggregate cost of the service to the landlord or owner. 23 5. The landlord may assess and collect a service charge from 24 the tenants of the park for the provision of gas and electric utility 25 services, but the amount of the charge must not be more than the 26 tenants would be required to pay the utility or alternative seller 27 providing the service. The landlord shall: 28 (a) Keep the money from the service charges in a separate 29 account and expend it only for federal income taxes which must be 30 paid as a result of the collection of the service charge, for preventive 31 maintenance or for repairing or replacing utility lines or equipment 32 when ordered or granted permission to do so by the Commission; 33 and 34 (b) Retain for at least 3 years a complete record of all deposits 35 and withdrawals of money from the account and file the record with 36 the Commission on or before March 30 of each year. 37 6. Money collected by the landlord or owner for service 38 provided by a utility or an alternative seller to the tenants of a 39 manufactured home park or mobile home park or occupants of the 40 dwellings may not be used to maintain, repair or replace utility lines 41 or equipment serving the common area of the manufactured home 42 park, mobile home park or company town. 43 7. The owner of a company town who provides a utility service 44 directly to the occupants of the town may charge the occupants their 45 – 21 – - *AB458* pro rata share of the owner’s cost of providing that service. Where 1 meters are available, the pro rata share must be based on meter 2 readings. Where meters are not available, the owner shall determine 3 a fair allocation which must be explained in detail to the 4 Commission in the reports required by NRS 704.960. The 5 Commission may modify the allocation in accordance with its 6 regulations if it determines the owner’s method not to be fair. The 7 Commission shall adopt regulations governing the determination of 8 the costs which an owner of a company town may recover for 9 providing a utility service directly to the occupants of that town and 10 the terms and conditions governing the provision of that service. 11 8. The landlord or owner shall itemize all charges for utility 12 services on all bills for rent or occupancy. The landlord or owner 13 may pass through to the tenant or occupant any increase in a rate for 14 a utility service and shall pass through any decrease in a charge for a 15 utility service as it becomes effective. 16 9. The landlord or owner shall retain for at least 3 years a copy 17 of all billings for utility services made to the tenants or the 18 occupants of the landlord’s or owner’s dwellings and shall make 19 these records available upon request to the Commission for 20 verification of charges made for utility services. 21 10. A landlord whose interest in a manufactured home park or 22 mobile home park terminates for any reason shall transfer to the 23 landlord’s successor in interest any balance remaining in the account 24 for service charges for utilities. Evidence of the transfer must be 25 filed with the Commission. 26 11. The Commission may at any time examine all books and 27 records which relate to the landlord’s or owner’s purchase of or 28 billing for a service provided by a utility or an alternative seller if 29 the landlord or owner is charging the tenants of the manufactured 30 home park or mobile home park or occupants of the dwellings for 31 that service. 32 12. The provisions of this section do not apply to a landlord 33 or owner who is the owner or operator of a solar-powered 34 affordable housing system, as defined in section 8 of this act, 35 except that: 36 (a) If the owner of a solar-powered affordable housing system 37 is the landlord of a qualified multifamily affordable housing 38 property, as defined in section 7 of this act, in which the tenant 39 units are equipped with individual meters, the owner of the solar-40 powered affordable housing system must follow any applicable 41 federal laws or regulations to ensure that the owner of the solar-42 powered affordable housing system does not charge a tenant or 43 occupant for utility service at a rate that is higher than the rate 44 paid by the owner of the solar-powered affordable housing system. 45 – 22 – - *AB458* (b) A landlord who is the owner or operator of a solar-powered 1 affordable housing system shall ensure that the financial benefits 2 of the electricity produced by the solar-powered affordable 3 housing system are allocated among the tenant units in a manner 4 that is equitable as required by NRS 704.773 and section 9 of this 5 act. 6 Sec. 19. 1. Not later than February 17, 2026, a utility shall 7 file with the Public Utilities Commission of Nevada any 8 amendments to its tariff or tariffs that are necessary to comply with 9 the provisions of this act. 10 2. As used in this section, “utility” has the meaning ascribed to 11 it in NRS 704.772. 12 Sec. 20. 1. This section becomes effective upon passage and 13 approval. 14 2. Sections 1 to 19, inclusive, of this act become effective: 15 (a) Upon passage and approval for the purpose of adopting any 16 regulations and performing any other preparatory administrative 17 tasks that are necessary to carry out the provisions of this act; and 18 (b) On January 1, 2026, for all other purposes. 19 3. Section 10 of this act expires by limitation on December 31, 20 2029. 21 H