HR 1598
112th CONGRESS
1st Session
H. R. 1598
To amend the Public Utility Regulatory Policies Act of 1978 to promote
energy independence and self-sufficiency by providing for the use of net metering
by certain small electric energy generation systems, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
April 15, 2011
Mr. CARDOZA (for himself and Mr. LUJAN) introduced the following bill; which
was referred to the Committee on Energy and Commerce, and in addition to the
Committees on Oversight and Government Reform, Financial Services, and Transportation
and Infrastructure, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the jurisdiction
of the committee concerned
A BILL
To amend the Public Utility Regulatory Policies Act of 1978 to promote
energy independence and self-sufficiency by providing for the use of net metering
by certain small electric energy generation systems, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Solar Opportunity and Local Access Rights Act'.
SEC. 2. NET METERING AND INTERCONNECTION STANDARDS.
(a) In General- Section 113 of the Public Utility Regulatory Policies Act
of 1978 (16 U.S.C. 2623) is amended by adding at the end the following:
`(1) DEFINITIONS- In this subsection and subsection (e):
`(A) CUSTOMER-GENERATOR- The term `customer-generator' means the owner
or operator of a qualified generation unit.
`(B) ELECTRIC GENERATION UNIT- The term `electric generation unit' means--
`(i) a qualified generation unit; and
`(ii) any electric generation unit that qualifies for net metering under
a net metering tariff or rule approved by a State.
`(C) LOCAL DISTRIBUTION SYSTEM- The term `local distribution system' means
any system for the distribution of electric energy to the ultimate consumer
of the electricity, whether or not the owner or operator of the system
is a retail electric supplier.
`(D) NET METERING- The term `net metering' means the process of--
`(i) measuring the difference between the electricity supplied to a
customer-generator and the electricity generated by the customer-generator
that is delivered to a local distribution system at the same point of
interconnection during an applicable billing period; and
`(ii) providing an energy credit to the customer-generator in the form
of a kilowatt-hour credit for each kilowatt-hour of energy produced
by the customer-generator from a qualified generation unit.
`(E) QUALIFIED GENERATION UNIT- The term `qualified generation unit' means
an electric energy generation unit that uses as the energy source of the
unit solar energy to generate electricity to heat or cool that--
`(i) has a generating capacity of not more than 5,000 kilowatts;
`(ii) is located on premises that are owned, operated, leased, or otherwise
controlled by the customer-generator;
`(iii) operates in parallel with the retail electric supplier; and
`(iv) is intended primarily to offset all or part of the requirements
of the customer-generator for electric energy.
`(F) RETAIL ELECTRIC SUPPLIER- The term `retail electric supplier' means
any electric utility that sells electric energy to the ultimate consumer
of the energy.
`(2) ADOPTION- Not later than 1 year after the date of enactment of this
subsection, each State regulatory authority (with respect to each electric
utility for which the State regulatory authority has ratemaking authority),
and each nonregulated electric utility, shall--
`(A) provide public notice and conduct a hearing with respect to the standards
established under paragraph (3); and
`(B) on the basis of the hearing, adopt the standard.
`(3) ESTABLISHMENT OF NET METERING STANDARD-
`(A) IN GENERAL- Each retail electric supplier shall offer to arrange
(either directly or through a local distribution company or other third
party) to make net metering available, on a first-come, first-served basis,
to each of the retail customers of the retail electric supplier in accordance
with the requirements described in subparagraph (B) and other provisions
of this subsection.
`(B) REQUIREMENTS- The requirements referred to in subparagraph (A) are,
with respect to a retail electric supplier, that--
`(i) rates and charges and contract terms and conditions for the sale
of electric energy to customer-generators shall be the same as the rates
and charges and contract terms and conditions that would be applicable
if the customer-generator did not own or operate a qualified generation
unit and use a net metering system; and
`(ii) each retail electric supplier shall notify all of the retail customers
of the retail electric supplier of the standard established under this
paragraph as soon as practicable after the adoption of the standard.
`(4) NET ENERGY MEASUREMENT-
`(A) IN GENERAL- Each retail electric supplier shall arrange to provide
to customer-generators who qualify for net metering under subsection (b)
an electrical energy meter capable of net metering and measuring, to the
maximum extent practicable, the flow of electricity to or from the customer,
using a single meter and single register.
`(B) IMPRACTICABILITY- In a case in which it is not practicable to provide
a meter to a customer-generator under subparagraph (A), a retail electric
supplier (either directly or through a local distribution company or other
third party) shall, at the expense of the retail electric supplier, install
1 or more of those electric energy meters for the customer-generators
concerned.
`(A) IN GENERAL- Each retail electric supplier subject to subsection (b)
shall calculate the electric energy consumption for a customer using a
net metering system in accordance with subparagraphs (B) through (D).
`(B) MEASUREMENT OF ELECTRICITY- The retail electric supplier shall measure
the net electricity produced or consumed during the billing period using
the metering installed in accordance with paragraph (4).
`(C) BILLING AND CREDITING-
`(i) BILLING- If the electricity supplied by the retail electric supplier
exceeds the electricity generated by the customer-generator during the
billing period, the customer-generator shall be billed for the net electric
energy supplied by the retail electric supplier in accordance with normal
billing practices.
`(I) IN GENERAL- If electric energy generated by the customer-generator
exceeds the electric energy supplied by the retail electric supplier
during the billing period, the customer-generator shall be billed
for the appropriate customer charges for that billing period and credited
for the excess electric energy generated during the billing period,
with the credit appearing as a kilowatt-hour credit on the bill for
the following billing period.
`(II) APPLICATION OF CREDITS- Any kilowatt-hour credits provided to
a customer-generator under this clause shall be applied to customer-generator
electric energy consumption on the following billing period bill (except
for a billing period that ends in the next calendar year).
`(III) CARRYOVER OF UNUSED CREDITS- At the beginning of each 12-month
period, any unused kilowatt-hour credits remaining from the preceding
year will carry over to the new 12-month period.
`(D) USE OF TIME-DIFFERENTIATED RATES-
`(i) IN GENERAL- Except as provided in clause (ii), if a customer-generator
is using a meter and retail billing arrangement that has time-differentiated
rates--
`(I) the kilowatt-hour credit shall be based on the ratio representing
the difference in retail rates for each time-of-use rate; or
`(II) the credits shall be reflected on the bill of the customer-generator
as a monetary credit reflecting retail rates at the time of generation
of the electric energy by the customer-generator.
`(ii) DIFFERENT TARIFFS OR SERVICES- A retail electric supplier shall
offer a customer-generator the choice of a time-differentiated energy
tariff rate or a nontime-differentiated energy tariff rate, if the retail
electric supplier offers the choice to customers in the same rate class
as the customer-generator.
`(6) PERCENT LIMITATIONS-
`(A) 8 PERCENT LIMITATION- The standard established under this subsection
shall not apply for a calendar year in the case of a customer-generator
served by a local distribution company if the total generating capacity
of all customer-generators with net metering systems served by the local
distribution company in the calendar year is equal to or more than 8 percent
of the capacity necessary to meet the average forecasted aggregate customer
peak demand of the company for the calendar year.
`(B) 4 PERCENT LIMITATION- The standard established under this subsection
shall not apply for a 12-month period in the case of a customer-generator
served by a local distribution company if the total generating capacity
of all customer-generators with net metering systems served by the local
distribution company in the calendar year using a single type of qualified
generation unit is equal to or more than 4 percent of the capacity necessary
to meet the forecasted aggregate customer peak demand of the company for
the calendar year.
`(i) RECORDS- Each retail electric supplier shall maintain, and make
available to the public, records of--
`(I) the total generating capacity of customer-generators of the system
of the retail electric supplier that are using net metering; and
`(II) the type of generating systems and energy source used by the
electric generating systems used by the customer-generators.
`(ii) NOTICE- Each such retail electric supplier shall notify the State
regulatory authority and the Commission at each time at which the total
generating capacity of the customer-generators of the retail electric
supplier reaches a level that equals or exceeds--
`(I) 75 percent of the limitation specified in subparagraph (B); or
`(II) the limitation specified in subparagraph (B).
`(7) OWNERSHIP OF CREDITS-
`(A) IN GENERAL- For purposes of Federal and State laws providing renewable
energy credits or greenhouse gas credits, a customer-generator with a
qualified generation unit and net metering shall be treated as owning
and having title to the renewable energy attributes, renewable energy
credits and greenhouse gas emission credits relating to any electricity
produced by the qualified generation unit.
`(B) RETAIL ELECTRIC SUPPLIERS- No retail electric supplier shall claim
title to or ownership of any renewable energy attributes, renewable energy
credits, or greenhouse gas emission credits of a customer-generator as
a result of interconnecting the customer-generator or providing or offering
the customer-generator net metering.
`(8) SAFETY AND PERFORMANCE STANDARDS-
`(A) IN GENERAL- A qualified generation unit and net metering system used
by a customer-generator shall meet all applicable safety and performance
and reliability standards established by--
`(i) the national electrical code;
`(ii) the Institute of Electrical and Electronics Engineers;
`(iii) Underwriters Laboratories; or
`(iv) the American National Standards Institute.
`(B) ADDITIONAL CHARGES- The Commission shall, after consultation with
State regulatory authorities and nonregulated local distribution systems
and after notice and opportunity for comment, prohibit by regulation the
imposition of additional charges by retail electric suppliers and local
distribution systems for equipment or services for safety or performance
that are in addition to those necessary to meet the standards and requirements
referred to in subparagraph (A) and subsection (e).
`(9) DETERMINATION OF COMPLIANCE-
`(A) IN GENERAL- Any State regulatory authority (with respect to each
electric utility for which the authority has ratemaking authority), and
each nonregulated electric utility, may apply to the Commission for a
determination that any State net metering requirement or regulations complies
with this subsection.
`(B) ORDERS- In the absence of a determination under subparagraph (A),
the Commission, on the motion of the Commission or pursuant to the petition
of any interested person, may, after notice and opportunity for a hearing
on the record, issue an order requiring against any retail electric supplier
or local distribution company to require compliance with this subsection.
`(i) IN GENERAL- Any person who violates this subsection shall be subject
to a civil penalty in the amount of $500 for each day that the violation
continues.
`(ii) ASSESSMENT- The penalty may be assessed by the Commission, after
notice and opportunity for hearing, in the same manner as penalties
are assessed under section 31(d) of the Federal Power Act (16 U.S.C.
823b(d)).
`(e) Interconnection Standards-
`(A) IN GENERAL- Not later than 1 year after the date of enactment of
this subsection, the Commission shall publish model standards for the
physical connection between local distribution systems and qualified generation
units and electric generation units that--
`(i) are qualified generation units (as defined in subsection (d)(1)(E)
other than clause (ii) of subsection (d)(1)(E)); and
`(ii) do not exceed 5 megawatts of capacity.
`(B) PURPOSES- The model standards shall be designed to--
`(i) encourage the use of qualified generation units; and
`(ii) ensure the safety and reliability of the qualified generation
units and the local distribution systems interconnected with the qualified
generation units.
`(i) IN GENERAL- The model standards shall have 2 separate procedures,
including--
`(I) a standard for interconnecting qualified generation units of
not more than 15 kilowatts; and
`(II) a separate standard that expedites interconnection for qualified
generation units of more than 15 kilowatts but not more than 5 megawatts.
`(ii) BEST PRACTICES- The procedures shall be based on the best practices
that have been used in States that have adopted interconnection standards.
`(iii) MODEL RULE- In designing the procedures, the Commission shall
consider Interstate Renewable Energy Council Model Rule MR-I2005.
`(i) IN GENERAL- Not later than 2 years after the date of enactment
of this subsection, each State shall--
`(I) adopt the model standards established under this paragraph, with
or without modification; and
`(II) submit the standards to the Commission for approval.
`(ii) APPROVAL OF MODIFICATION- The Commission shall approve a modification
of the model standards only if the Commission determines that the modification
is--
`(I) consistent with or superior to the purpose of the standards;
and
`(II) required by reason of local conditions.
`(E) NONAPPROVAL OF STANDARDS FOR A STATE- If standards have not been
approved under this paragraph by the Commission for any State during the
2-year period beginning on the date of enactment of this subsection, the
Commission shall, by rule or order, enforce the model standards of the
Commission in the State until such time as State standards are approved
by the Commission.
`(i) IN GENERAL- Not later than 2 years after the date of enactment
of this subsection and after notice and opportunity for comment, the
Commission shall publish an update of the model standards, after considering
changes in the underlying standards and technologies.
`(ii) AVAILABILITY- The updates shall be made available to State regulatory
authorities for the consideration of the authorities.
`(2) SAFETY, RELIABILITY, PERFORMANCE, AND COST-
`(A) IN GENERAL- The standards under this subsection shall establish such
measures for the safety and reliability of the affected equipment and
local distribution systems as are appropriate.
`(B) ADMINISTRATION- The standards shall--
`(i) be consistent with all applicable safety and performance standards
established by--
`(I) the national electrical code;
`(II) the Institute of Electrical and Electronics Engineers;
`(III) Underwriters Laboratories; or
`(IV) the American National Standards Institute; and
`(ii) impose not more than such minimum cost and technical burdens to
the interconnecting customer generator as the Commission determines,
by rule, are practicable.
`(3) ADDITIONAL CHARGES- The model standards under this subsection shall
prohibit the imposition of additional charges by local distribution systems
for equipment or services for interconnection that are in excess of--
`(A) the charges necessary to meet the standards; and
`(B) the charges and equipment requirements identified in the best practices
of States with interconnection standards.
`(4) RELATIONSHIP TO EXISTING LAW REGARDING INTERCONNECTION- Nothing in
this subsection affects the application of section 111(d)(15) relating to
interconnection.
`(5) CONSUMER-FRIENDLY CONTRACTS-
`(A) IN GENERAL- The Commission shall--
`(i) promulgate regulations that ensure that simplified contracts will
be used for the interconnection of electric energy by electric energy
transmission or local distribution systems and generating facilities
that have a power production capacity of not greater than 5,000 kilowatts;
and
`(ii) consider the best practices for consumer-friendly contracts that
are used by States or national associations of State regulators.
`(B) LIABILITY OR INSURANCE- The contracts shall not require liability
or other insurance in excess of the liability or insurance that is typically
carried by customer-generators for general liability.'.
(b) Conforming Amendment- Section 1262 of the Public Utility Holding Company
Act of 2005 (42 U.S.C. 16451) is amended by striking paragraph (5) and inserting
the following:
`(5) ELECTRIC UTILITY COMPANY-
`(A) IN GENERAL- The term `electric utility company' means any company
that owns or operates facilities used for the generation, transmission,
or distribution of electric energy for sale.
`(B) EXCLUSION- The term `electric utility company' does not include an
electric generation unit (as defined in section 113(d) of the Public Utility
Regulatory Policies Act of 1978).'.
SEC. 3. RELATIONSHIP TO STATE LAW.
Section 117(b) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
2627(b)) is amended--
(1) by striking `Nothing' and inserting the following:
`(1) IN GENERAL- Except as provided in paragraph (2), nothing'; and
(2) by adding at the end the following:
`(2) NET METERING AND INTERCONNECTION STANDARDS-
`(A) IN GENERAL- Subject to subparagraph (B), no State or nonregulated
utility may adopt or enforce any standard or requirement concerning net
metering or interconnection that restricts access to the electric power
transmission or local distribution system by qualified generators beyond
those standards and requirements established under section 113.
`(B) EQUIVALENT OR GREATER ACCESS- Nothing in this Act precludes a State
from adopting or enforcing incentives or requirements to encourage qualified
generation and net metering that--
`(i) are in addition to or equivalent to incentives or requirements
under section 113; or
`(ii) afford greater access to the electric power transmission and local
distribution systems by qualified generators (as defined in section
113) or afford greater compensation or credit for electricity generated
by the qualified generators.'.
SEC. 4. CONTRACTS FOR RENEWABLE ENERGY FOR EXECUTIVE AGENCIES.
Section 501(b)(1)(B) of title 40, United States Code, is amended--
(1) by striking `A contract' and inserting the following:
`(i) IN GENERAL- Except as provided in clause (ii), a contract'; and
(2) by adding at the end the following:
`(ii) RENEWABLE ENERGY- A contract for renewable energy (as defined
in section 203(b) of the Energy Policy Act of 2005 (42 U.S.C. 15852(b)))
may be made for a period of not more than 30 years.'.
SEC. 5. SOLAR ENERGY SYSTEMS BUILDING PERMIT REQUIREMENTS FOR RECEIPT OF
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS.
Section 104 of the Housing and Community Development Act of 1974 (42 U.S.C.
5304) is amended by adding at the end the following new subsection:
`(n) Requirements for Building Permits Regarding Solar Energy Systems-
`(1) IN GENERAL- A grant under section 106 for a fiscal year may be made
only if the grantee certifies to the Secretary that--
`(A) in the case of a grant under section 106(a) for any Indian tribe
or insular area, during such fiscal year the cost of any permit or license,
for construction or installation of any solar energy system for any structure,
that is required by the tribe or insular area or by any other unit of
general local government or other political subdivision of such tribe
or insular area, complies with paragraph (2);
`(B) in the case of a grant under section 106(b) for any metropolitan
city or urban county, during such fiscal year the cost of any permit or
license, for construction or installation of any solar energy system for
any structure, that is required by the metropolitan city or urban county,
or by any other political subdivision of such city or county, complies
with paragraph (2); and
`(C) in the case of a grant under section 106(d) for any State, during
such fiscal year the cost of any permit or license, for construction or
installation of any solar energy system for any structure, that is required
by the State, or by any other unit of general local government within
any nonentitlement area of such State, or other political subdivision
within any nonentitlement area of such State or such a unit of general
local government, complies with paragraph (2).
`(2) LIMITATION ON COST- The cost of permit or license for construction
or installation of any solar energy system complies with this paragraph
only if such cost does not exceed the following amount:
`(A) RESIDENTIAL STRUCTURES- In the case of a structure primarily for
residential use, $500.
`(B) NONRESIDENTIAL STRUCTURES- In the case of a structure primarily for
nonresidential use, 1.0 percent of the total cost of the installation
or construction of the solar energy system, but not in excess of $10,000.
`(3) NONCOMPLIANCE- If the Secretary determines that a grantee of a grant
made under section 106 is not in compliance with a certification under paragraph
(1)--
`(A) the Secretary shall notify the grantee of such determination; and
`(B) if the grantee has not corrected such noncompliance before the expiration
of the 6-month period beginning upon notification under subparagraph (A),
such grantee shall not be eligible for 5 percent of any amounts awarded
under a grant under section 106 for the first fiscal year that commences
after the expiration of such 6-month period.
`(4) SOLAR ENERGY SYSTEM- For purposes of this subsection, the term `solar
energy system' means, with respect to a structure, equipment that uses solar
energy to generate electricity for, or to heat or cool (or provide hot water
for use in), such structure.'.
SEC. 6. PROHIBITION OF RESTRICTIONS ON RESIDENTIAL INSTALLATION OF SOLAR
ENERGY SYSTEM.
(a) Regulations- Within 180 days after the enactment of this Act, the Secretary
of Housing and Urban Development, in consultation with the Secretary of Energy,
shall issue regulations--
(1) to prohibit any private covenant, contract provision, lease provision,
homeowners' association rule or bylaw, or similar restriction, that impairs
the ability of the owner or lessee of any residential structure designed
for occupancy by 1 family to install, construct, maintain, or use a solar
energy system on such residential property; and
(2) to require that whenever any such covenant, provision, rule or bylaw,
or restriction requires approval for the installation or use of a solar
energy system, the application for approval shall be processed and approved
by the appropriate approving entity in the same manner as an application
for approval of an architectural modification to the property, and shall
not be willfully avoided or delayed.
(b) Contents- The regulations required under subsection (a) shall provide
that--
(1) such a covenant, provision, rule or bylaw, or restriction impairs the
installation, construction, maintenance, or use of a solar energy system
if it--
(A) unreasonably delays or prevents installation, maintenance, or use;
(B) unreasonably increases the cost of installation, maintenance, or use;
or
(C) precludes use of such a system; and
(2) any fee or cost imposed on the owner or lessee of such a residential
structure by such a covenant, provision, rule or bylaw, or restriction shall
be considered unreasonable if--
(A) such fee or cost is not reasonable in comparison to the cost of the
solar energy system or the value of its use; or
(B) treatment of solar energy systems by the covenant, provision, rule
or bylaw, or restriction is not reasonable in comparison with treatment
of comparable systems by the same covenant, provision, rule or bylaw,
or restriction.
(c) Solar Energy System- For purposes of this section, the term `solar energy
system' means, with respect to a structure, equipment that uses solar energy
to generate electricity for, or to heat or cool (or provide hot water for
use in), such structure.
SEC. 7. CENTER FOR ADVANCED SOLAR RESEARCH.
(a) Establishment- The Secretary of Energy shall establish a Center for Advanced
Solar Research and Development within the Office of Energy Efficiency and
Renewable Energy to carry out an advanced solar research and development program
to coordinate and promote the further development of solar technologies. This
program shall include a competitive grant program for academia and private
research in solar technologies. The Center shall serve as a clearinghouse
for United States solar research and development, supporting research, development,
and demonstration of advanced solar energy systems. The Center shall advance--
(1) performance, reliability, environmental impact, and cost-competitiveness
of solar thermal and photovoltaic technologies;
(2) large-scale photovoltaic and solar thermal power plants;
(3) thermal and electricity storage technologies to enhance the dispatchability
of solar energy;
(4) fuel production technologies using solar energy;
(5) innovation in manufacturing techniques and processes for solar energy
systems;
(6) materials and devices to improve photovoltaic conversion efficiencies
and reduce costs;
(7) policy analysis aimed at increasing use of solar energy technologies,
and monitoring the effectiveness of existing policies; and
(8) comprehensive solar systems integration.
(b) Authorization of Appropriations- There are authorized to be appropriated
to the Secretary of Energy for carrying out this section $25,000,000 for each
of the fiscal years 2012 through 2016, to remain available until expended.
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