[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 729 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 729
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
January 30, 2007
Mr. Inslee (for himself, Mr. Bartlett of Maryland, Mr. Ehlers, Ms. Lee,
Mr. Farr, Mr. Smith of Washington, Ms. Kaptur, Mr. Hinchey, Mr.
Grijalva, Mr. DeFazio, Mr. Payne, Mr. Honda, and Ms. Hooley) 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 AND INTERCONNECTION STANDARDS.
Section 113 of the Public Utility Regulatory Policies Act of 1978
is amended by adding the following new subsections at the end thereof:
``(d) Net Metering.--
``(1) Definitions.--As used in this subsection:
``(A) The term `customer-generator' means the owner
or operator of a qualified generation unit.
``(B) 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 and
providing an energy credit to a customer-generator in
the form of a kilowatt-hour credit for each kilowatt-
hour of energy produced by a customer-generator from a
qualified generation unit.
``(C) The term `qualified generation unit' means an
electric energy generation unit that meets each of the
following requirements:
``(i) The unit is a fuel cell or uses as
its energy source either solar, wind, biomass,
geothermal, anaerobic digestion or landfill
gas, or a combination of the foregoing.
``(ii) The unit has a generating capacity
of not more than 1,000 kilowatts.
``(iii) The unit is located on premises
that are owned, operated, leased, or otherwise
controlled by the customer-generator.
``(iv) The unit operates in parallel with
the retail electric supplier.
``(v) The unit is intended primarily to
offset part or all of the customer-generator's
requirements for electric energy.
``(D) The term `retail electric supplier' means any
electric utility that sells electric energy to the
ultimate consumer thereof.
``(E) 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.
``(2) Adoption.--Not later than one year after the
enactment of this subsection, each State regulatory authority
(with respect to each electric utility for which it has
ratemaking authority), and each nonregulated electric utility,
shall provide public notice and conduct a hearing respecting
the standards established by paragraph (3) and, on the basis of
such hearing, shall adopt such standard.
``(3) Establishment of net metering standard.--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 its retail customers in accordance with the
provisions of this subsection and each of the following
requirements:
``(A) 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.
``(B) Each retail electric supplier shall notify
all of its retail customers of the standard established
under this paragraph upon adoption of such standard.
``(4) Net energy measurement.--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 the flow of
electricity either to or from the customer and using a single
meter and single register, except where it is not practical to
do so. Where it is not practical to provide the meter to the
customer-generator, the retail electric supplier (either
directly or through a local distribution company or other third
party) shall, at its own expense, install one or more of such
electric energy meters for the customer-generator concerned.
``(5) Billing.--Each retail electric supplier subject to
subsection (b) shall calculate the electric energy consumption
for a customer using a net metering system in the following
manner:
``(A) The retail electric supplier shall measure
the net electricity produced or consumed during the
billing period using the metering installed as provided
in paragraph (4).
``(B) 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
``(C)(i) If electric energy generated by the
customer-generator exceeds the electric energy supplied
by the retail electric supplier, 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 this credit appearing as a kilowatt-hour credit on
the bill for the following billing period. The
kilowatt-hour credits 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). At the beginning of
each calendar year, any remaining unused kilowatt-hour
credits shall be extinguished.
``(ii) Except as provided in this clause, if the
customer-generator is using a meter and retail billing
arrangement that has time differentiated rates, (a
`time-of-use meter'), the kilowatt-hour credit shall be
based on the ratio representing the difference in
retail rates for each time of use rate or the credits
shall be shown on the customer-generator's bill as a
monetary credit reflecting retail rates at the time of
generation of the electric energy by the customer-
generator. Notwithstanding the standard established
under section 11(d)(14), the supplier may require, at
the supplier's option, the customer-generator with net
metering to take electric service under a non-time
differentiated energy rate tariff or service that it
offers to customers in the same rate class as the
customer-generator.
``(6) Percent limitations.--
``(A) Two 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 when the total
generating capacity of all customer-generators with net
metering systems served by that local distribution
company in that calendar year is equal to or in excess
of 2 percent of the capacity necessary to meet the
local distribution company's average forecasted
aggregate customer peak demand for that calendar year.
``(B) One 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 when the total
generating capacity of all customer-generators with net
metering systems served by that local distribution
company in that calendar year using a single type of
qualified generation units (as listed in paragraph
(1)(C)(i)) is equal to or in excess of 1 percent of the
capacity necessary to meet the company's average
forecasted aggregate customer peak demand for that
calendar year.
``(C) 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 State regulatory authority
and the Federal Energy Regulatory Commission when the
total generating capacity of such customer-generators
is equal to or in excess of the limitations set forth
in subparagraph (B).
``(7) Ownership of credits.--For purposes of Federal and
State laws providing renewable energy credits or greenhouse gas
credits, the customer-generator with a qualified generating
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 related to any
electricity produced by the qualified generating unit. No
retail electric supplier shall claim title to or ownership of
any renewable energy attributes, renewable energy credits or
greenhouse gas emission credits of the 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) 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.
``(B) 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 and requirements referred to in
subparagraph (A) of this paragraph and subsection (e) of this
section (relating to interconnection).
``(9) Determination of compliance.--Any State regulatory
authority (with respect to each electric utility for which it
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
the requirements of this subsection. In the absence of such a
determination, the Commission, on its own motion 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, or both, to require compliance with this
subsection. Any person who violates any requirement of this
subsection or any order of the Commission under this subsection
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.
``(e) Interconnection Standards.--
``(1) Definitions.--For purposes of this subsection, the
terms defined in subsection (d) shall apply.
``(2) Model standards.--(A) Within one year after the
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 meet the requirements of
subsection (d)(1)(C) other than clause (ii) thereof and that do
not exceed 20,000 kilowatts of capacity. Such model standards
shall be designed to encourage the use of qualified generation
units and to ensure the safety and reliability of such units
and the local distribution systems interconnected with such
units.
``(B) The model standards shall have two separate expedited
procedures for interconnecting qualified generation units up to
15 kilowatts and a separate standard that expedites
interconnection for qualified generation units up to 2000
kilowatts. Such expedited procedures shall be based on those
best practices among the States that have adopted
interconnection standards. In designing such expedited
procedures, the Commission shall consider Interstate Renewable
Energy Council Model Rule MR-I2005.
``(C) Within 2 years after the enactment of this
subsection, each State shall adopt the model standards
published under this paragraph, 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 or superior to the purpose of such standards
and is required by reason of local conditions.
``(D) If standards have not been approved under this
paragraph by the Commission for any State within 2 years after
the enactment of this subsection, 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.
``(E) Within two years after the enactment of this
subsection, and after notice and opportunity for comment, the
Commission shall publish an update of such model standards,
considering changes in the underlying standards and
technologies. Such updates shall be made available to State
regulatory authorities for their consideration.
``(3) Safety, reliability, performance, and cost.--The
standards under this section shall establish those 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 yet
constitute the minimum cost and technical burdens to the
interconnecting customer generator as the Commission shall, by
rule, prescribe.
``(4) Additional charges.--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 and that are in excess of the charges and
equipment requirements identified in the best practices of
states with interconnection standards.
``(5) Relationship to existing law regarding
interconnection.--Nothing in this subsection affects the
application of section 111(d)(15) relating to interconnection.
``(6) 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 2000 kilowatts and shall consider the best practices for
consumer friendly contracts adopted by States or national
associations of state regulators. Such contracts shall not
require liability or other insurance in excess of what is
typically carried by customer-generators for general liability.
``(7) Enforcement.--Any person who violates any requirement
of this subsection 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.''.
SEC. 4. RELATIONSHIP TO STATE LAW.
Section 117 of the Public Utility Regulatory Policies Act of 1978
is amended by striking ``Nothing'' and inserting ``(1) Except as
provided in paragraph (2), nothing'' and by adding the following at the
end thereof:
``(2) 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 distribution
system by qualified generators beyond those standards and requirements
identified in section 113. Nothing in this Act shall preclude a State
from adopting or enforcing incentives or requirements to encourage
qualified generation and net metering that are additional to or
equivalent to those required under section 113 or that afford greater
access to the electric power transmission and distribution system by
qualified generators as defined in section 113 or afford greater
compensation or credit for electricity generated by such generators.''.
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