Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0506 Compare Versions

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99 S TATE OF RHODE IS LAND
1010 IN GENERAL ASSEMBLY
1111 JANUARY SESSION, A.D. 2023
1212 ____________
1313
1414 A N A C T
1515 RELATING TO PUBLIC UTILITIES AND CARRIERS -- NET METERING
1616 Introduced By: Senators Valverde, DiMario, Murray, Miller, DiPalma, Pearson, Euer,
1717 Tikoian, Ujifusa, and Gallo
1818 Date Introduced: March 07, 2023
1919 Referred To: Senate Environment & Agriculture
2020
2121
2222 It is enacted by the General Assembly as follows:
2323 SECTION 1. Section 39-26.4-2 of the General Laws in Chapter 39-26.4 entitled "Net 1
2424 Metering" is hereby amended to read as follows: 2
2525 39-26.4-2. Definitions. 3
2626 Terms not defined in this section herein shall have the same meaning as contained in 4
2727 chapter 26 of this title. When used in this chapter: 5
2828 (1) “Community remote net-metering system” means a facility generating electricity using 6
2929 an eligible net-metering resource that allocates net-metering credits to a minimum of one account 7
3030 for a system associated with low- or moderate-income housing eligible credit recipients, or three 8
3131 (3) eligible credit-recipient customer accounts, provided that no more than fifty percent (50%) of 9
3232 the credits produced by the system are allocated to one eligible credit recipient, and provided further 10
3333 at least fifty percent (50%) of the credits produced by the system are allocated to the remaining 11
3434 eligible credit recipients in an amount not to exceed that which is produced annually by twenty-12
3535 five kilowatt (25 KW) AC capacity. The community remote net-metering system may transfer 13
3636 credits to eligible credit recipients in an amount that is equal to or less than the sum of the usage of 14
3737 the eligible credit recipient accounts measured by the three-year (3) average annual consumption 15
3838 of energy over the previous three (3) years. A projected annual consumption of energy may be used 16
3939 until the actual three-year (3) average annual consumption of energy over the previous three (3) 17
4040 years at the eligible credit recipient accounts becomes available for use in determining eligibility 18
4141 of the generating system. The community remote net-metering system may be owned by the same 19
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4545 entity that is the customer of record on the net-metered account or may be owned by a third party. 1
4646 (2) “Electric distribution company” shall have the same meaning as § 39-1-2, but shall not 2
4747 include Block Island Power Company or Pascoag Utility District, each of whom shall be required 3
4848 to offer net metering to customers through a tariff approved by the public utilities commission after 4
4949 a public hearing. Any tariff or policy on file with the public utilities commission on the date of 5
5050 passage of this chapter shall remain in effect until the commission approves a new tariff. 6
5151 (3) “Eligible credit recipient” means one of the following eligible recipients in the electric 7
5252 distribution company’s service territory whose electric service account or accounts may receive 8
5353 net-metering credits from a community remote net-metering system. Eligible credit recipients 9
5454 include the following definitions: 10
5555 (i) Residential accounts in good standing. 11
5656 (ii) “Low- or moderate-income housing eligible credit recipient” means an electric service 12
5757 account or accounts in good standing associated with any housing development or developments 13
5858 owned or operated by a public agency, nonprofit organization, limited-equity housing cooperative, 14
5959 or private developer that receives assistance under any federal, state, or municipal government 15
6060 program to assist the construction or rehabilitation of housing affordable to low- or moderate-16
6161 income households, as defined in the applicable federal or state statute, or local ordinance, 17
6262 encumbered by a deed restriction or other covenant recorded in the land records of the municipality 18
6363 in which the housing is located, that: 19
6464 (A) Restricts occupancy of no less than fifty percent (50%) of the housing to households 20
6565 with a gross, annual income that does not exceed eighty percent (80%) of the area median income 21
6666 as defined annually by the United States Department of Housing and Urban Development (HUD); 22
6767 (B) Restricts the monthly rent, including a utility allowance, that may be charged to 23
6868 residents, to an amount that does not exceed thirty percent (30%) of the gross, monthly income of 24
6969 a household earning eighty percent (80%) of the area median income as defined annually by HUD; 25
7070 (C) Has an original term of not less than thirty (30) years from initial occupancy. 26
7171 Electric service account or accounts in good standing associated with housing 27
7272 developments that are under common ownership or control may be considered a single low- or 28
7373 moderate-income housing eligible credit recipient for purposes of this section. The value of the 29
7474 credits shall be used to provide benefits to tenants. 30
7575 (iii) “Educational institutions” means public and private schools at the primary, secondary, 31
7676 and postsecondary levels. 32
7777 (4) “Eligible net-metering resource” means eligible renewable energy resource, as defined 33
7878 in § 39-26-5 including biogas created as a result of anaerobic digestion, but, specifically excluding 34
7979
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8282 all other listed eligible biomass fuels. 1
8383 (5) “Eligible net-metering system” means a facility generating electricity using an eligible 2
8484 net-metering resource that is reasonably designed and sized to annually produce electricity in an 3
8585 amount that is equal to, or less than, the renewable self-generator’s usage at the eligible net-4
8686 metering system site. No utility shall limit the eligibility of a net metering site based on prior 5
8787 consumption. Any excess of energy not consumed under a net metering system within a calendar 6
8888 year shall be credited to the consumer at the wholesale electricity rate measured by the three-year 7
8989 (3) average annual consumption of energy over the previous three (3) years at the electric 8
9090 distribution account(s) located at the eligible net-metering system site A projected annual 9
9191 consumption of energy may be used until the actual three-year (3) average annual consumption of 10
9292 energy over the previous three (3) years at the electric distribution account(s) located at the eligible 11
9393 net-metering system site becomes available for use in determining eligibility of the generating 12
9494 system. The eligible net-metering system may be owned by the same entity that is the customer of 13
9595 record on the net-metered accounts or may be owned by a third party that is not the customer of 14
9696 record at the eligible net-metering system site and which may offer a third-party, net-metering 15
9797 financing arrangement or net-metering financing arrangement, as applicable. Notwithstanding any 16
9898 other provisions of this chapter, any eligible net-metering resource: (i) Owned by a public entity, 17
9999 educational institution, hospital, nonprofit, or multi-municipal collaborative or (ii) Owned and 18
100100 operated by a renewable-generation developer on behalf of a public entity, educational institution, 19
101101 hospital, nonprofit, or multi-municipal collaborative through a net-metering financing arrangement 20
102102 shall be treated as an eligible net-metering system and all accounts designated by the public entity, 21
103103 educational institution, hospital, nonprofit, or multi-municipal collaborative for net metering shall 22
104104 be treated as accounts eligible for net metering within an eligible net-metering system site. 23
105105 (6) “Eligible net-metering system site” means the site where the eligible net-metering 24
106106 system or community remote net-metering system is located or is part of the same campus or 25
107107 complex of sites contiguous to one another and the site where the eligible net-metering system or 26
108108 community remote net-metering system is located or a farm in which the eligible net-metering 27
109109 system or community remote net-metering system is located. Except for an eligible net-metering 28
110110 system owned by or operated on behalf of a public entity, educational institution, hospital, 29
111111 nonprofit, or multi-municipal collaborative through a net-metering financing arrangement, the 30
112112 purpose of this definition is to reasonably assure that energy generated by the eligible net-metering 31
113113 system is consumed by net-metered electric service account(s) that are actually located in the same 32
114114 geographical location as the eligible net-metering system. All energy generated from any eligible 33
115115 net-metering system is, and will be considered, consumed at the meter where the renewable energy 34
116116
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119119 resource is interconnected for valuation purposes. Except for an eligible net-metering system 1
120120 owned by, or operated on behalf of, a public entity, educational institution, hospital, nonprofit, or 2
121121 multi-municipal collaborative through a net-metering financing arrangement, or except for a 3
122122 community remote net-metering system, all of the net-metered accounts at the eligible net-metering 4
123123 system site must be the accounts of the same customer of record and customers are not permitted 5
124124 to enter into agreements or arrangements to change the name on accounts for the purpose of 6
125125 artificially expanding the eligible net-metering system site to contiguous sites in an attempt to avoid 7
126126 this restriction. However, a property owner may change the nature of the metered service at the 8
127127 accounts at the site to be master metered in the owner’s name, or become the customer of record 9
128128 for each of the accounts, provided that the owner becoming the customer of record actually owns 10
129129 the property at which the account is located. As long as the net-metered accounts meet the 11
130130 requirements set forth in this definition, there is no limit on the number of accounts that may be net 12
131131 metered within the eligible net-metering system site. 13
132132 (7) “Excess renewable net-metering credit” means a credit that applies to an eligible net-14
133133 metering system or community remote net-metering system for that portion of the production of 15
134134 electrical energy beyond one hundred percent (100%) and no greater than one hundred twenty-five 16
135135 percent (125%) of the renewable self-generator’s own consumption at the eligible net-metering 17
136136 system site or the sum of the usage of the eligible credit recipient accounts associated with the 18
137137 community remote net-metering system during the applicable billing period. Such excess 19
138138 renewable net-metering credit shall be equal to the electric distribution company’s avoided cost 20
139139 rate wholesale electricity rate, which is hereby declared to be the average ISO-NE clearing price at 21
140140 the time of sale electric distribution company’s standard-offer service kilowatt hour (KWh) charge 22
141141 for the rate class and time-of-use billing period (if applicable) applicable to the customer of record 23
142142 for the eligible net-metering system or applicable to the customer of record for the community 24
143143 remote net-metering system. The commission shall have the authority to make determinations as 25
144144 to the applicability of this credit to specific generation facilities to the extent there is any uncertainty 26
145145 or disagreement. 27
146146 (8) “Farm” shall be defined in accordance with § 44-27-2, except that all buildings 28
147147 associated with the farm shall be eligible for net-metering credits as long as: (i) The buildings are 29
148148 owned by the same entity operating the farm or persons associated with operating the farm; and (ii) 30
149149 The buildings are on the same farmland as the project on either a tract of land contiguous with, or 31
150150 reasonably proximate to, such farmland or across a public way from such farmland. 32
151151 (9) “Hospital” means and shall be defined and established as set forth in chapter 17 of title 33
152152 23. 34
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156156 (10) “Multi-municipal collaborative” means a group of towns and/or cities that enter into 1
157157 an agreement for the purpose of co-owning a renewable-generation facility or entering into a 2
158158 financing arrangement pursuant to subsection (14). 3
159159 (11) “Municipality” means any Rhode Island town or city, including any agency or 4
160160 instrumentality thereof, with the powers set forth in title 45. 5
161161 (12) “Net metering” means using electrical energy generated by an eligible net-metering 6
162162 system for the purpose of self-supplying electrical energy and power at the eligible net-metering 7
163163 system site, or with respect to a community remote net-metering system, for the purpose of 8
164164 generating net-metering credits to be applied to the electric bills of the eligible credit recipients 9
165165 associated with the community net-metering system. The amount so generated will thereby offset 10
166166 consumption at the eligible net-metering system site through the netting process established in this 11
167167 chapter, or with respect to a community remote net-metering system, the amounts generated in 12
168168 excess of that amount will result in credits being applied to the eligible credit-recipient accounts 13
169169 associated with the community remote net-metering system. 14
170170 (13) “Net-metering customer” means a customer of the electric distribution company 15
171171 receiving and being billed for distribution service whose distribution account(s) are being net 16
172172 metered. 17
173173 (14) “Net-metering financing arrangement” means arrangements entered into by a public 18
174174 entity, educational institution, hospital, nonprofit, or multi-municipal collaborative with a private 19
175175 entity to facilitate the financing and operation of a net-metering resource, in which the private entity 20
176176 owns and operates an eligible net-metering resource on behalf of a public entity, educational 21
177177 institution, hospital, nonprofit, or multi-municipal collaborative, where: (i) The eligible net-22
178178 metering resource is located on property owned or controlled by the public entity, educational 23
179179 institution, hospital, or one of the municipalities, as applicable; and (ii) The production from the 24
180180 eligible net-metering resource and primary compensation paid by the public entity, educational 25
181181 institution, hospital, nonprofit, or multi-municipal collaborative to the private entity for such 26
182182 production is directly tied to the consumption of electricity occurring at the designated net-metered 27
183183 accounts. 28
184184 (15) “Nonprofit” means a nonprofit corporation as defined and established through chapter 29
185185 6 of title 7, and shall include religious organizations that are tax exempt pursuant to 26 U.S.C. § 30
186186 501(d). 31
187187 (16) “Person” means an individual, firm, corporation, association, partnership, farm, town 32
188188 or city of the state of Rhode Island, multi-municipal collaborative, or the state of Rhode Island or 33
189189 any department of the state government, governmental agency, or public instrumentality of the 34
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193193 state. 1
194194 (17) “Project” means a distinct installation of an eligible net-metering system or a 2
195195 community remote net-metering system. An installation will be considered distinct if it is installed 3
196196 in a different location, or at a different time, or involves a different type of renewable energy. 4
197197 (18) “Public entity” means the federal government, the state of Rhode Island, 5
198198 municipalities, wastewater treatment facilities, public transit agencies, or any water distributing 6
199199 plant or system employed for the distribution of water to the consuming public within this state 7
200200 including the water supply board of the city of Providence. 8
201201 (19) “Renewable net-metering credit” means a credit that applies to an eligible net-9
202202 metering system or a community remote net-metering system up to one hundred percent (100%) of 10
203203 either the renewable self-generator’s usage at the eligible net-metering system site or the sum of 11
204204 the usage of the eligible credit-recipient accounts associated with the community remote net-12
205205 metering system over the applicable billing period. This credit shall be equal to the total kilowatt 13
206206 hours of electrical energy generated up to the amount consumed on-site, and/or generated up to the 14
207207 sum of the eligible credit-recipient account usage during the billing period multiplied by the sum 15
208208 of the distribution company’s: 16
209209 (i) Standard-offer service kilowatt-hour charge for the rate class applicable to the net-17
210210 metering customer, except that for remote public entity and multi-municipality collaborative net-18
211211 metering systems that submit an application for an interconnection study on or after July 1, 2017, 19
212212 and community remote net-metering systems, the standard-offer service kilowatt-hour charge shall 20
213213 be net of the renewable energy standard charge or credit; 21
214214 (ii) Distribution kilowatt-hour charge; 22
215215 (iii) Transmission kilowatt-hour charge; and 23
216216 (iv) Transition kilowatt-hour charge. 24
217217 Notwithstanding the foregoing, except for systems that have requested an interconnection 25
218218 study for which payment has been received by the distribution company, or if an interconnection 26
219219 study is not required, a completed and paid interconnection application, by December 31, 2018, the 27
220220 renewable net-metering credit for all remote public entity and multi-municipal collaborative net-28
221221 metering systems shall not include the distribution kilowatt-hour charge commencing on January 29
222222 1, 2050. 30
223223 (20) “Renewable self-generator” means an electric distribution service customer of record 31
224224 for the eligible net-metering system or community remote net-metering system at the eligible net-32
225225 metering system site which system is primarily designed to produce electrical energy for 33
226226 consumption by that same customer at its distribution service account(s), and/or, with respect to 34
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230230 community remote net-metering systems, electrical energy which generates net-metering credits to 1
231231 be applied to offset the eligible credit-recipient account usage. 2
232232 (21) “Third party” means and includes any person or entity, other than the renewable self-3
233233 generator, who or that owns or operates the eligible net-metering system or community remote net-4
234234 metering system on the eligible net-metering system site for the benefit of the renewable self-5
235235 generator. 6
236236 (22) “Third-party, net-metering financing arrangement” means the financing of eligible 7
237237 net-metering systems or community remote net-metering systems through lease arrangements or 8
238238 power/credit purchase agreements between a third party and renewable self-generator, except for 9
239239 those entities under a public entity net-metering financing arrangement. A third party engaged in 10
240240 providing financing arrangements related to such net-metering systems with a public or private 11
241241 entity is not a public utility as defined in § 39-1-2. 12
242242 SECTION 2. This act shall take effect upon passage. 13
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249249 EXPLANATION
250250 BY THE LEGISLATIVE COUNCIL
251251 OF
252252 A N A C T
253253 RELATING TO PUBLIC UTILITIES AND CARRIERS -- NET METERING
254254 ***
255255 This act would prohibit utility companies from limiting the eligibility of a net metering site 1
256256 based on prior consumption and require excess energy not consumed under the net metering system 2
257257 to be credited to the consumer. It would also amend the definition of excess renewable net-metering 3
258258 credit. 4
259259 This act would take effect upon passage. 5
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