Home > 106th Congressional Bills > H.R. 350 (eh) To improve congressional deliberation on proposed Federal private sector mandates, and for other purposes. [Engrossed in House] ...H.R. 350 (eh) To improve congressional deliberation on proposed Federal private sector mandates, and for other purposes. [Engrossed in House] ...
108th CONGRESS
1st Session
H. R. 3509
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
November 18, 2003
Mr. Inslee (for himself, Mr. Bartlett of Maryland, Mr. Ehlers, Mr.
Frost, Mr. Boehlert, Mr. Van Hollen, Mr. Leach, Mr. Larsen of
Washington, Mr. Udall of Colorado, Ms. Baldwin, Mr. Blumenauer, Mrs.
Davis of California, Mr. Gutierrez, Mr. Hastings of Washington, Mr.
Hinchey, Mrs. Jones of Ohio, Ms. Kaptur, Ms. Lee, Mr. McDermott, Mr.
Smith of Washington, and Ms. Woolsey) introduced the following bill;
which was referred to the Committee on Energy and Commerce
_______________________________________________________________________
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 ``Home Energy Generation Act''.
SEC. 2. FINDINGS.
The Congress finds that it is in the public interest to:
(1) Enable small businesses, residences, schools, churches,
farms with small electric generation units, and other retail
electric customers who generate electric energy to return or
sell surplus electric energy on the open market.
(2) Encourage private investment in renewable and alternate
energy resources.
(3) Stimulate the economic growth.
(4) Enhance the continued diversification section of energy
resources used in the United States.
(5) Remove regulatory barriers for net metering.
SEC. 3. NET METERING.
Title II of the Public Utility Regulatory Policies Act of 1978 is
amended by adding the following new section at the end thereof:
``SEC. 215. NET METERING.
``(a) Definitions.--As used in this section:
``(1) The term `customer-generator' means the owner or
operator of an electric generation unit qualified for net
metering under this section.
``(2) The term `net metering' means measuring the
difference between the electricity supplied to a customer-
generator and the electricity generated by a customer-generator
that is delivered to a local distribution section system at the
same point of interconnection during an applicable billing
period.
``(3) The terms `electric generation unit qualified for net
metering' and `qualified generation unit' mean an electric
energy generation unit that meets each of the following
requirements:
``(A) The unit is a fuel cell or uses as its energy
source either solar, wind, or biomass.
``(B) The unit has a generating capacity of not
more than 100 kilowatts.
``(C) The unit is located on premises that are
owned, operated, leased, or otherwise controlled by the
customer-generator.
``(D) The unit operates in parallel with the retail
electric supplier.
``(E) The unit is intended primarily to offset part
or all of the customer-generator's requirements for
electric energy.
``(4) The term `retail electric supplier' means any person
that sells electric energy to the ultimate consumer thereof.
``(5) The term `local distribution system' means any system
for the distribution section of electric energy to the ultimate
consumer thereof, whether or not the owner or operator of such
system is also a retail electric supplier.
``(b) Adoption.--Not later than one year after the enactment of
this section, subject to subsection (d), each retail electric supplier
shall comply with each of the following requirements and notify all of
its retail customers of such requirements not less frequently than
quarterly:
``(1) The supplier shall offer to arrange (either directly
or through a local distribution company or other third party)
to make available, on a first-come-first-served basis, to each
of its retail customers that has installed an energy generation
unit that is intended for net metering and that notifies the
supplier of its generating capacity an electric energy meter
that is capable of net metering if the customer-generator's
existing electrical meter cannot perform that function.
``(2) 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.
Any retail electric supplier or local distribution company may, at its
own expense, install one or more additional electric energy meters to
monitor the flow of electricity in either direction or to reflect the
time of generation or both. Whenever a customer-generator with a net
metering system uses any energy generation system entitled to credits
under a Federal minimum renewable energy generation requirement, the
total amount of energy generated by that system shall be treated as
generated by the retail electric supplier for purposes of such
requirement.
``(c) Net Energy Measurement and Billing.--Each retail electric
supplier subject to subsection (b) shall calculate the net energy
measurement for a customer using a net metering system in the following
manner:
``(1) The retail electric supplier shall measure the net
electricity produced or consumed during the billing period
using the metering referred to in subsection (b).
``(2) 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 electricity supplied by the retail
electric supplier in accordance with normal metering practices.
``(3) If electricity generated by the customer-generator
exceeds the electricity supplied by the retail electric
supplier, the customer-generator--
``(A) shall be billed for the appropriate customer
charges for that billing period;
``(B) shall be credited for the excess electric
energy generated during the billing period, with this
credit appearing on the bill for the following billing
period (except for a billing period that ends in the
next calendar year); and
``(C) shall not be charged for transmission losses.
If the customer-generator is using a meter that reflects the
time of generation (a `real time meter'), the credit shall be
based on the retail rates for sale by the retail electric
supplier at the time of such generation. At the beginning of
each calendar year, any remaining unused kilowatt-hour credit
accumulated by a customer-generator during the previous year
may be sold by the customer-generator to any electric supplier
that agrees to purchase such credit. In the absence of any such
purchase, the credit shall be assigned (at no cost) to the
retail electric supplier that supplied electric energy to such
customer-generator at the end of the previous year.
``(d) Percent Limitations.--
``(1) Two percent limitation.--A retail electric supplier
shall not be required to provide local distribution service
with respect to additional customer-generators after the date
during any calendar year on which the total generating capacity
of all customer-generators with qualified generation facilities
and net metering systems served by that supplier is equal to or
in excess of 2 percent of the capacity necessary to meet the
supplier's average forecasted aggregate customer peak demand
for that calendar year.
``(2) One percent limitation.--A retail electric supplier
shall not be required to provide local distribution service
with respect to additional customer-generators using a single
type of qualified energy generation system after the date
during any calendar year on which the total generating capacity
of all customer-generators with qualified generation facilities
of that type and net metering systems served by that supplier
is equal to or in excess of 1 percent of the capacity necessary
to meet the supplier's average forecasted aggregate customer
peak demand for that calendar year.
``(3) Records and notice.--Each retail electric supplier
shall maintain, and make available to the public, records of
the total generating capacity of customer-generators of such
system that are using net metering, the type of generating
systems and energy source used by the electric generating
systems used by such customer-generators. Each such retail
electric supplier shall notify the Commission when the total
generating capacity of such customer-generators is equal to or
in excess of 2 percent of the capacity necessary to meet the
supplier's aggregate customer peak demand during the previous
calendar year and when the total generating capacity of such
customer-generators using a single type of qualified generation
is equal to or in excess of 1 percent of such capacity.
``(e) Safety and Performance Standards.--(1) 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 the national electrical code, the Institute of
Electrical and Electronics Engineers, Underwriters Laboratories, or the
American National Standards Institute.
``(2) The Commission, after consultation with State regulatory
authorities and nonregulated local distribution systems and after
notice and opportunity for comment, may adopt by regulation additional
control and testing requirements for customer-generators that the
Commission determines are necessary to protect public safety and system
reliability.
``(3) 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 electric suppliers and local
distribution systems for equipment or services for safety or
performance that are additional to those necessary to meet the
standards referred to in subparagraphs (A) and (B).
``(f) State Authority.--Nothing in this section shall preclude a
State from establishing or imposing additional incentives or
requirements to encourage qualified generation and net metering
additional to that required under this section.
``(g) Interconnection Standards.--(1) Within one year after the
enactment of this section the Commission shall publish model standards
for the physical connection between local distribution systems and
qualified generation units and electric generation units that would be
qualified generation units but for the fact that the unit has a
generating capacity of more than 100 kilowatts (but not more than 250
kilowatts). Such model standards shall be designed to encourage the use
of qualified generation units and to insure the safety and reliability
of such units and the local distribution systems interconnected with
such units. Within 2 years after the enactment of this section, each
State shall adopt such model standards, with or without modification,
and submit such standards to the Commission for approval. The
Commission shall approve a modification of the model standards only if
the Commission determines that such modification is consistent with the
purpose of such standards and is required by reason of local
conditions. If standards have not been approved under this paragraph by
the Commission for any State within 2 years after the enactment of this
section, the Commission shall, by rule or order, enforce the
Commission's model standards in such State until such time as State
standards are approved by the Commission.
``(2) The standards under this section shall establish such
measures for the safety and reliability of the affected equipment and
local distribution systems as may be appropriate. Such standards shall
be consistent with all applicable safety and performance standards
established by the national electrical code, the Institute of
Electrical and Electronics Engineers, Underwriters Laboratories, or the
American National Standards Institute and with such additional safety
and reliability standards as the Commission shall, by rule, prescribe.
Such standards shall ensure that generation units will automatically
isolate themselves from the electrical system in the event of an
electrical power outage. Such standards shall permit the owner or
operator of the local distribution system to interrupt or reduce
deliveries of available energy from the generation unit to the system
when necessary in order to construct, install, maintain, repair,
replace, remove, investigate, or inspect any of its equipment or part
of its system; or if it determines that curtailment, interruption, or
reduction is necessary because of emergencies, forced outages, force
majeure, or compliance with prudent electrical practices.
``(3) The model standards under this subsection prohibit the
imposition of additional charges by local distribution systems for
equipment or services for interconnection that are additional to those
necessary to meet such standards.
``(h) Interconnection.--At the election of the owner or operator of
the generation unit concerned, connections meeting the standards
applicable under subsection (g) may be made--
``(1) by such owner or operator at such owner's or
operator's expense, or
``(2) by the owner or operator of the local distribution
system upon the request of the owner or operator of the
generating unit and pursuant to an offer by the owner or
operator of the generating unit to reimburse the local
distribution system in an amount equal to the minimum cost of
such connection, consistent with the procurement procedures of
the State in which the unit is located, except that the work on
all such connections shall be performed by qualified electrical
personnel certified by a responsible body or licensed by a
State or local government authority.
``(i) Consumer Friendly Contracts.--The Commission shall promulgate
regulations insuring that simplified contracts will be used for the
interconnection of electric energy by electric energy transmission or
distribution systems and generating facilities that have a power
production capacity not greater than 250 kilowatts.
``(j) Enforcement.--Any person who violates any requirement of this
section shall be subject to civil penalties in the amount of $10,000
for each day that such violation continues. Such penalties 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.''.
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Pages: 1 Other Popular 106th Congressional Bills Documents:
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