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4 | 4 | | |
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5 | 5 | | 2023 -- S 0506 |
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6 | 6 | | ======== |
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7 | 7 | | LC002316 |
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8 | 8 | | ======== |
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9 | 9 | | S TATE OF RHODE IS LAND |
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10 | 10 | | IN GENERAL ASSEMBLY |
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11 | 11 | | JANUARY SESSION, A.D. 2023 |
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12 | 12 | | ____________ |
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13 | 13 | | |
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14 | 14 | | A N A C T |
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15 | 15 | | RELATING TO PUBLIC UTILITIES AND CARRIERS -- NET METERING |
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16 | 16 | | Introduced By: Senators Valverde, DiMario, Murray, Miller, DiPalma, Pearson, Euer, |
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17 | 17 | | Tikoian, Ujifusa, and Gallo |
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18 | 18 | | Date Introduced: March 07, 2023 |
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19 | 19 | | Referred To: Senate Environment & Agriculture |
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20 | 20 | | |
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21 | 21 | | |
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22 | 22 | | It is enacted by the General Assembly as follows: |
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23 | 23 | | SECTION 1. Section 39-26.4-2 of the General Laws in Chapter 39-26.4 entitled "Net 1 |
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24 | 24 | | Metering" is hereby amended to read as follows: 2 |
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25 | 25 | | 39-26.4-2. Definitions. 3 |
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26 | 26 | | Terms not defined in this section herein shall have the same meaning as contained in 4 |
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27 | 27 | | chapter 26 of this title. When used in this chapter: 5 |
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28 | 28 | | (1) “Community remote net-metering system” means a facility generating electricity using 6 |
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29 | 29 | | an eligible net-metering resource that allocates net-metering credits to a minimum of one account 7 |
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30 | 30 | | for a system associated with low- or moderate-income housing eligible credit recipients, or three 8 |
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31 | 31 | | (3) eligible credit-recipient customer accounts, provided that no more than fifty percent (50%) of 9 |
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32 | 32 | | the credits produced by the system are allocated to one eligible credit recipient, and provided further 10 |
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33 | 33 | | at least fifty percent (50%) of the credits produced by the system are allocated to the remaining 11 |
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34 | 34 | | eligible credit recipients in an amount not to exceed that which is produced annually by twenty-12 |
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35 | 35 | | five kilowatt (25 KW) AC capacity. The community remote net-metering system may transfer 13 |
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36 | 36 | | credits to eligible credit recipients in an amount that is equal to or less than the sum of the usage of 14 |
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37 | 37 | | the eligible credit recipient accounts measured by the three-year (3) average annual consumption 15 |
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38 | 38 | | of energy over the previous three (3) years. A projected annual consumption of energy may be used 16 |
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39 | 39 | | until the actual three-year (3) average annual consumption of energy over the previous three (3) 17 |
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40 | 40 | | years at the eligible credit recipient accounts becomes available for use in determining eligibility 18 |
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41 | 41 | | of the generating system. The community remote net-metering system may be owned by the same 19 |
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42 | 42 | | |
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43 | 43 | | |
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44 | 44 | | LC002316 - Page 2 of 8 |
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45 | 45 | | entity that is the customer of record on the net-metered account or may be owned by a third party. 1 |
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46 | 46 | | (2) “Electric distribution company” shall have the same meaning as § 39-1-2, but shall not 2 |
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47 | 47 | | include Block Island Power Company or Pascoag Utility District, each of whom shall be required 3 |
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48 | 48 | | to offer net metering to customers through a tariff approved by the public utilities commission after 4 |
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49 | 49 | | a public hearing. Any tariff or policy on file with the public utilities commission on the date of 5 |
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50 | 50 | | passage of this chapter shall remain in effect until the commission approves a new tariff. 6 |
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51 | 51 | | (3) “Eligible credit recipient” means one of the following eligible recipients in the electric 7 |
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52 | 52 | | distribution company’s service territory whose electric service account or accounts may receive 8 |
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53 | 53 | | net-metering credits from a community remote net-metering system. Eligible credit recipients 9 |
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54 | 54 | | include the following definitions: 10 |
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55 | 55 | | (i) Residential accounts in good standing. 11 |
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56 | 56 | | (ii) “Low- or moderate-income housing eligible credit recipient” means an electric service 12 |
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57 | 57 | | account or accounts in good standing associated with any housing development or developments 13 |
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58 | 58 | | owned or operated by a public agency, nonprofit organization, limited-equity housing cooperative, 14 |
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59 | 59 | | or private developer that receives assistance under any federal, state, or municipal government 15 |
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60 | 60 | | program to assist the construction or rehabilitation of housing affordable to low- or moderate-16 |
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61 | 61 | | income households, as defined in the applicable federal or state statute, or local ordinance, 17 |
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62 | 62 | | encumbered by a deed restriction or other covenant recorded in the land records of the municipality 18 |
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63 | 63 | | in which the housing is located, that: 19 |
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64 | 64 | | (A) Restricts occupancy of no less than fifty percent (50%) of the housing to households 20 |
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65 | 65 | | with a gross, annual income that does not exceed eighty percent (80%) of the area median income 21 |
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66 | 66 | | as defined annually by the United States Department of Housing and Urban Development (HUD); 22 |
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67 | 67 | | (B) Restricts the monthly rent, including a utility allowance, that may be charged to 23 |
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68 | 68 | | residents, to an amount that does not exceed thirty percent (30%) of the gross, monthly income of 24 |
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69 | 69 | | a household earning eighty percent (80%) of the area median income as defined annually by HUD; 25 |
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70 | 70 | | (C) Has an original term of not less than thirty (30) years from initial occupancy. 26 |
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71 | 71 | | Electric service account or accounts in good standing associated with housing 27 |
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72 | 72 | | developments that are under common ownership or control may be considered a single low- or 28 |
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73 | 73 | | moderate-income housing eligible credit recipient for purposes of this section. The value of the 29 |
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74 | 74 | | credits shall be used to provide benefits to tenants. 30 |
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75 | 75 | | (iii) “Educational institutions” means public and private schools at the primary, secondary, 31 |
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76 | 76 | | and postsecondary levels. 32 |
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77 | 77 | | (4) “Eligible net-metering resource” means eligible renewable energy resource, as defined 33 |
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78 | 78 | | in § 39-26-5 including biogas created as a result of anaerobic digestion, but, specifically excluding 34 |
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79 | 79 | | |
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80 | 80 | | |
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81 | 81 | | LC002316 - Page 3 of 8 |
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82 | 82 | | all other listed eligible biomass fuels. 1 |
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83 | 83 | | (5) “Eligible net-metering system” means a facility generating electricity using an eligible 2 |
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84 | 84 | | net-metering resource that is reasonably designed and sized to annually produce electricity in an 3 |
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85 | 85 | | amount that is equal to, or less than, the renewable self-generator’s usage at the eligible net-4 |
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86 | 86 | | metering system site. No utility shall limit the eligibility of a net metering site based on prior 5 |
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87 | 87 | | consumption. Any excess of energy not consumed under a net metering system within a calendar 6 |
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88 | 88 | | year shall be credited to the consumer at the wholesale electricity rate measured by the three-year 7 |
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89 | 89 | | (3) average annual consumption of energy over the previous three (3) years at the electric 8 |
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90 | 90 | | distribution account(s) located at the eligible net-metering system site A projected annual 9 |
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91 | 91 | | consumption of energy may be used until the actual three-year (3) average annual consumption of 10 |
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92 | 92 | | energy over the previous three (3) years at the electric distribution account(s) located at the eligible 11 |
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93 | 93 | | net-metering system site becomes available for use in determining eligibility of the generating 12 |
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94 | 94 | | system. The eligible net-metering system may be owned by the same entity that is the customer of 13 |
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95 | 95 | | record on the net-metered accounts or may be owned by a third party that is not the customer of 14 |
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96 | 96 | | record at the eligible net-metering system site and which may offer a third-party, net-metering 15 |
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97 | 97 | | financing arrangement or net-metering financing arrangement, as applicable. Notwithstanding any 16 |
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98 | 98 | | other provisions of this chapter, any eligible net-metering resource: (i) Owned by a public entity, 17 |
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99 | 99 | | educational institution, hospital, nonprofit, or multi-municipal collaborative or (ii) Owned and 18 |
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100 | 100 | | operated by a renewable-generation developer on behalf of a public entity, educational institution, 19 |
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101 | 101 | | hospital, nonprofit, or multi-municipal collaborative through a net-metering financing arrangement 20 |
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102 | 102 | | shall be treated as an eligible net-metering system and all accounts designated by the public entity, 21 |
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103 | 103 | | educational institution, hospital, nonprofit, or multi-municipal collaborative for net metering shall 22 |
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104 | 104 | | be treated as accounts eligible for net metering within an eligible net-metering system site. 23 |
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105 | 105 | | (6) “Eligible net-metering system site” means the site where the eligible net-metering 24 |
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106 | 106 | | system or community remote net-metering system is located or is part of the same campus or 25 |
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107 | 107 | | complex of sites contiguous to one another and the site where the eligible net-metering system or 26 |
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108 | 108 | | community remote net-metering system is located or a farm in which the eligible net-metering 27 |
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109 | 109 | | system or community remote net-metering system is located. Except for an eligible net-metering 28 |
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110 | 110 | | system owned by or operated on behalf of a public entity, educational institution, hospital, 29 |
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111 | 111 | | nonprofit, or multi-municipal collaborative through a net-metering financing arrangement, the 30 |
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112 | 112 | | purpose of this definition is to reasonably assure that energy generated by the eligible net-metering 31 |
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113 | 113 | | system is consumed by net-metered electric service account(s) that are actually located in the same 32 |
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114 | 114 | | geographical location as the eligible net-metering system. All energy generated from any eligible 33 |
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115 | 115 | | net-metering system is, and will be considered, consumed at the meter where the renewable energy 34 |
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116 | 116 | | |
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117 | 117 | | |
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118 | 118 | | LC002316 - Page 4 of 8 |
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119 | 119 | | resource is interconnected for valuation purposes. Except for an eligible net-metering system 1 |
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120 | 120 | | owned by, or operated on behalf of, a public entity, educational institution, hospital, nonprofit, or 2 |
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121 | 121 | | multi-municipal collaborative through a net-metering financing arrangement, or except for a 3 |
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122 | 122 | | community remote net-metering system, all of the net-metered accounts at the eligible net-metering 4 |
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123 | 123 | | system site must be the accounts of the same customer of record and customers are not permitted 5 |
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124 | 124 | | to enter into agreements or arrangements to change the name on accounts for the purpose of 6 |
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125 | 125 | | artificially expanding the eligible net-metering system site to contiguous sites in an attempt to avoid 7 |
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126 | 126 | | this restriction. However, a property owner may change the nature of the metered service at the 8 |
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127 | 127 | | accounts at the site to be master metered in the owner’s name, or become the customer of record 9 |
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128 | 128 | | for each of the accounts, provided that the owner becoming the customer of record actually owns 10 |
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129 | 129 | | the property at which the account is located. As long as the net-metered accounts meet the 11 |
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130 | 130 | | requirements set forth in this definition, there is no limit on the number of accounts that may be net 12 |
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131 | 131 | | metered within the eligible net-metering system site. 13 |
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132 | 132 | | (7) “Excess renewable net-metering credit” means a credit that applies to an eligible net-14 |
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133 | 133 | | metering system or community remote net-metering system for that portion of the production of 15 |
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134 | 134 | | electrical energy beyond one hundred percent (100%) and no greater than one hundred twenty-five 16 |
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135 | 135 | | percent (125%) of the renewable self-generator’s own consumption at the eligible net-metering 17 |
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136 | 136 | | system site or the sum of the usage of the eligible credit recipient accounts associated with the 18 |
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137 | 137 | | community remote net-metering system during the applicable billing period. Such excess 19 |
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138 | 138 | | renewable net-metering credit shall be equal to the electric distribution company’s avoided cost 20 |
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139 | 139 | | rate wholesale electricity rate, which is hereby declared to be the average ISO-NE clearing price at 21 |
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140 | 140 | | the time of sale electric distribution company’s standard-offer service kilowatt hour (KWh) charge 22 |
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141 | 141 | | for the rate class and time-of-use billing period (if applicable) applicable to the customer of record 23 |
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142 | 142 | | for the eligible net-metering system or applicable to the customer of record for the community 24 |
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143 | 143 | | remote net-metering system. The commission shall have the authority to make determinations as 25 |
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144 | 144 | | to the applicability of this credit to specific generation facilities to the extent there is any uncertainty 26 |
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145 | 145 | | or disagreement. 27 |
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146 | 146 | | (8) “Farm” shall be defined in accordance with § 44-27-2, except that all buildings 28 |
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147 | 147 | | associated with the farm shall be eligible for net-metering credits as long as: (i) The buildings are 29 |
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148 | 148 | | owned by the same entity operating the farm or persons associated with operating the farm; and (ii) 30 |
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149 | 149 | | The buildings are on the same farmland as the project on either a tract of land contiguous with, or 31 |
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150 | 150 | | reasonably proximate to, such farmland or across a public way from such farmland. 32 |
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151 | 151 | | (9) “Hospital” means and shall be defined and established as set forth in chapter 17 of title 33 |
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152 | 152 | | 23. 34 |
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153 | 153 | | |
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154 | 154 | | |
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155 | 155 | | LC002316 - Page 5 of 8 |
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156 | 156 | | (10) “Multi-municipal collaborative” means a group of towns and/or cities that enter into 1 |
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157 | 157 | | an agreement for the purpose of co-owning a renewable-generation facility or entering into a 2 |
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158 | 158 | | financing arrangement pursuant to subsection (14). 3 |
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159 | 159 | | (11) “Municipality” means any Rhode Island town or city, including any agency or 4 |
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160 | 160 | | instrumentality thereof, with the powers set forth in title 45. 5 |
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161 | 161 | | (12) “Net metering” means using electrical energy generated by an eligible net-metering 6 |
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162 | 162 | | system for the purpose of self-supplying electrical energy and power at the eligible net-metering 7 |
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163 | 163 | | system site, or with respect to a community remote net-metering system, for the purpose of 8 |
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164 | 164 | | generating net-metering credits to be applied to the electric bills of the eligible credit recipients 9 |
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165 | 165 | | associated with the community net-metering system. The amount so generated will thereby offset 10 |
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166 | 166 | | consumption at the eligible net-metering system site through the netting process established in this 11 |
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167 | 167 | | chapter, or with respect to a community remote net-metering system, the amounts generated in 12 |
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168 | 168 | | excess of that amount will result in credits being applied to the eligible credit-recipient accounts 13 |
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169 | 169 | | associated with the community remote net-metering system. 14 |
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170 | 170 | | (13) “Net-metering customer” means a customer of the electric distribution company 15 |
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171 | 171 | | receiving and being billed for distribution service whose distribution account(s) are being net 16 |
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172 | 172 | | metered. 17 |
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173 | 173 | | (14) “Net-metering financing arrangement” means arrangements entered into by a public 18 |
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174 | 174 | | entity, educational institution, hospital, nonprofit, or multi-municipal collaborative with a private 19 |
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175 | 175 | | entity to facilitate the financing and operation of a net-metering resource, in which the private entity 20 |
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176 | 176 | | owns and operates an eligible net-metering resource on behalf of a public entity, educational 21 |
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177 | 177 | | institution, hospital, nonprofit, or multi-municipal collaborative, where: (i) The eligible net-22 |
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178 | 178 | | metering resource is located on property owned or controlled by the public entity, educational 23 |
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179 | 179 | | institution, hospital, or one of the municipalities, as applicable; and (ii) The production from the 24 |
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180 | 180 | | eligible net-metering resource and primary compensation paid by the public entity, educational 25 |
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181 | 181 | | institution, hospital, nonprofit, or multi-municipal collaborative to the private entity for such 26 |
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182 | 182 | | production is directly tied to the consumption of electricity occurring at the designated net-metered 27 |
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183 | 183 | | accounts. 28 |
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184 | 184 | | (15) “Nonprofit” means a nonprofit corporation as defined and established through chapter 29 |
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185 | 185 | | 6 of title 7, and shall include religious organizations that are tax exempt pursuant to 26 U.S.C. § 30 |
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186 | 186 | | 501(d). 31 |
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187 | 187 | | (16) “Person” means an individual, firm, corporation, association, partnership, farm, town 32 |
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188 | 188 | | or city of the state of Rhode Island, multi-municipal collaborative, or the state of Rhode Island or 33 |
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189 | 189 | | any department of the state government, governmental agency, or public instrumentality of the 34 |
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190 | 190 | | |
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191 | 191 | | |
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192 | 192 | | LC002316 - Page 6 of 8 |
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193 | 193 | | state. 1 |
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194 | 194 | | (17) “Project” means a distinct installation of an eligible net-metering system or a 2 |
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195 | 195 | | community remote net-metering system. An installation will be considered distinct if it is installed 3 |
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196 | 196 | | in a different location, or at a different time, or involves a different type of renewable energy. 4 |
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197 | 197 | | (18) “Public entity” means the federal government, the state of Rhode Island, 5 |
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198 | 198 | | municipalities, wastewater treatment facilities, public transit agencies, or any water distributing 6 |
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199 | 199 | | plant or system employed for the distribution of water to the consuming public within this state 7 |
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200 | 200 | | including the water supply board of the city of Providence. 8 |
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201 | 201 | | (19) “Renewable net-metering credit” means a credit that applies to an eligible net-9 |
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202 | 202 | | metering system or a community remote net-metering system up to one hundred percent (100%) of 10 |
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203 | 203 | | either the renewable self-generator’s usage at the eligible net-metering system site or the sum of 11 |
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204 | 204 | | the usage of the eligible credit-recipient accounts associated with the community remote net-12 |
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205 | 205 | | metering system over the applicable billing period. This credit shall be equal to the total kilowatt 13 |
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206 | 206 | | hours of electrical energy generated up to the amount consumed on-site, and/or generated up to the 14 |
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207 | 207 | | sum of the eligible credit-recipient account usage during the billing period multiplied by the sum 15 |
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208 | 208 | | of the distribution company’s: 16 |
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209 | 209 | | (i) Standard-offer service kilowatt-hour charge for the rate class applicable to the net-17 |
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210 | 210 | | metering customer, except that for remote public entity and multi-municipality collaborative net-18 |
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211 | 211 | | metering systems that submit an application for an interconnection study on or after July 1, 2017, 19 |
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212 | 212 | | and community remote net-metering systems, the standard-offer service kilowatt-hour charge shall 20 |
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213 | 213 | | be net of the renewable energy standard charge or credit; 21 |
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214 | 214 | | (ii) Distribution kilowatt-hour charge; 22 |
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215 | 215 | | (iii) Transmission kilowatt-hour charge; and 23 |
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216 | 216 | | (iv) Transition kilowatt-hour charge. 24 |
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217 | 217 | | Notwithstanding the foregoing, except for systems that have requested an interconnection 25 |
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218 | 218 | | study for which payment has been received by the distribution company, or if an interconnection 26 |
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219 | 219 | | study is not required, a completed and paid interconnection application, by December 31, 2018, the 27 |
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220 | 220 | | renewable net-metering credit for all remote public entity and multi-municipal collaborative net-28 |
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221 | 221 | | metering systems shall not include the distribution kilowatt-hour charge commencing on January 29 |
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222 | 222 | | 1, 2050. 30 |
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223 | 223 | | (20) “Renewable self-generator” means an electric distribution service customer of record 31 |
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224 | 224 | | for the eligible net-metering system or community remote net-metering system at the eligible net-32 |
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225 | 225 | | metering system site which system is primarily designed to produce electrical energy for 33 |
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226 | 226 | | consumption by that same customer at its distribution service account(s), and/or, with respect to 34 |
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227 | 227 | | |
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228 | 228 | | |
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229 | 229 | | LC002316 - Page 7 of 8 |
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230 | 230 | | community remote net-metering systems, electrical energy which generates net-metering credits to 1 |
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231 | 231 | | be applied to offset the eligible credit-recipient account usage. 2 |
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232 | 232 | | (21) “Third party” means and includes any person or entity, other than the renewable self-3 |
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233 | 233 | | generator, who or that owns or operates the eligible net-metering system or community remote net-4 |
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234 | 234 | | metering system on the eligible net-metering system site for the benefit of the renewable self-5 |
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235 | 235 | | generator. 6 |
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236 | 236 | | (22) “Third-party, net-metering financing arrangement” means the financing of eligible 7 |
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237 | 237 | | net-metering systems or community remote net-metering systems through lease arrangements or 8 |
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238 | 238 | | power/credit purchase agreements between a third party and renewable self-generator, except for 9 |
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239 | 239 | | those entities under a public entity net-metering financing arrangement. A third party engaged in 10 |
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240 | 240 | | providing financing arrangements related to such net-metering systems with a public or private 11 |
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241 | 241 | | entity is not a public utility as defined in § 39-1-2. 12 |
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242 | 242 | | SECTION 2. This act shall take effect upon passage. 13 |
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244 | 244 | | LC002316 |
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247 | 247 | | |
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248 | 248 | | LC002316 - Page 8 of 8 |
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249 | 249 | | EXPLANATION |
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250 | 250 | | BY THE LEGISLATIVE COUNCIL |
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251 | 251 | | OF |
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252 | 252 | | A N A C T |
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253 | 253 | | RELATING TO PUBLIC UTILITIES AND CARRIERS -- NET METERING |
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254 | 254 | | *** |
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255 | 255 | | This act would prohibit utility companies from limiting the eligibility of a net metering site 1 |
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256 | 256 | | based on prior consumption and require excess energy not consumed under the net metering system 2 |
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257 | 257 | | to be credited to the consumer. It would also amend the definition of excess renewable net-metering 3 |
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258 | 258 | | credit. 4 |
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259 | 259 | | This act would take effect upon passage. 5 |
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261 | 261 | | LC002316 |
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