Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 411 Second Substitute (2019GS)

Sponsor

Rep. Handy, S.

Final action

Governor Signed 3/29/2019

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• enacts the Community Renewable Energy Act;
• defines terms and program requirements under the act;
• outlines the role and rulemaking authority of the Utah Public Service Commission in approving a community renewable energy program under the act;
• establishes and clarifies options for customer participation and nonparticipation in programs under the act;
• establishes procedures concerning rates, customer billing, and renewable energy resource acquisition under the act; and
• makes technical changes.

Every vote on this bill

Bill text

COMMUNITY RENEWABLE ENERGY ACT
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Stephen G. Handy
Senate Sponsor: 
____________
LONG TITLE
General Description:
This bill enacts the Community Renewable Energy Act in the Public Utilities Code.
Highlighted Provisions:
This bill:
▸ enacts the Community Renewable Energy Act;
▸ defines terms and program requirements under the act;
▸ outlines the role and rulemaking authority of the Utah Public Service Commission
in approving a community renewable energy program under the act;
▸ establishes and clarifies options for customer participation and nonparticipation in
programs under the act;
▸ establishes procedures concerning rates, customer billing, and renewable energy
resource acquisition under the act; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
ENACTS:
54-17-901
, Utah Code Annotated 1953
54-17-902
, Utah Code Annotated 1953
54-17-903
, Utah Code Annotated 1953
54-17-904
, Utah Code Annotated 1953
54-17-905
, Utah Code Annotated 1953
54-17-906
, Utah Code Annotated 1953
54-17-907
, Utah Code Annotated 1953
54-17-908
, Utah Code Annotated 1953
54-17-909
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
54-17-901
 is enacted to read:
Part 9. Community Renewable Energy Act
 54-17-901.
Community Renewable Energy Act.
This part is known as the "Community Renewable Energy Act."
Section 2. Section 
54-17-902
 is enacted to read:
 54-17-902.
Definitions.
As used in this part:
(1) (a) "Auxiliary services" means those services necessary to safely and reliably:
(i) interconnect and transmit electric power from any renewable energy resource
constructed or acquired for a community renewable energy program; and
(ii) integrate and supplement electric power from any renewable energy resource.
(b) "Auxiliary services" shall include applicable Federal Energy Regulatory
Commission requirements governing transmission and interconnection services.
(2) "Commission" means the Public Service Commission created in Section 
54-1-1
.
(3) "Community renewable energy program" means the program approved by the
commission under Section 
54-17-904
 that allows a qualified utility to provide electric service
from one or more renewable energy resources to a participating customer within a participating
community.
(4) "County" means the unincorporated area of a county.
(5) "Division" means the Division of Public Utilities created in Section 
54-4a-1
.
(6) "Municipality" means a city or a town as defined in Section 
10-1-104
.
(7) "Office" means the Office of Consumer Services created in Section 
54-10a-101
.
(8) "Ongoing costs" means the cost of transmission and distribution facilities allocated
to the state, retail services, and generation assets that are not replaced assets.
(9) "Participating community" means a municipality or a county:
(a) whose residents are served by a qualified utility; and
(b) the municipality or county meets the requirements in Section 
54-17-903
.
(10) "Participating customer" means:
(a) a customer of a qualified utility located within the boundary of a municipality or
county where a community renewable energy program has been approved by the commission;
and
(b) the customer has not exercised the right to not participate in the community
renewable energy program as provided in Section 
54-17-905
.
(11) "Qualified utility" means the same as that term is defined in Section 
54-17-801
.
(12) "Renewable electric energy supply" means incremental renewable energy
resources that are developed to meet the equivalent of the annual electric energy consumption
of participating customers within a participating community.
(13) "Renewable energy resource" means:
(a) electric energy generated by a source that is naturally replenished and includes one
or more of the following:
(i) wind;
(ii) solar photovoltaic or thermal solar technology;
(iii) a geothermal resource; or
(iv) a hydroelectric plant; or
(b) use of an energy efficient and sustainable technology the commission has approved
for implementation that:
(i) increases efficient energy usage;
(ii) is capable of being used for demand response; or
(iii) facilitates the use and development of renewable generation resources through
electrical grid management or energy storage.
(14) "Replaced asset" means an existing thermal energy resource that:
(a) was built or acquired, in whole or in part, by a qualified utility to serve its
customers, including customers within a participating community;
(b) was built or acquired prior to commission approval and the effective date of the
community renewable energy program; and
(c) is no longer used, either in whole or in part, to serve participating customers, as
agreed upon by the qualified utility and the participating community as provided in Subsection
54-17-903
(2)(b).
Section 3. Section 
54-17-903
 is enacted to read:
 54-17-903.
Program requirement for a municipality or county.
(1) Customers of a qualified utility may be served by the community renewable energy
program described in this part if the municipality or county satisfies the requirements of
Subsection (2).
(2) The municipality or county in which the customer resides shall:
(a) adopt a resolution no later than December 31, 2019, that states a goal of achieving
an amount equivalent to 100% of the annual electric energy supply for participating customers
from a renewable energy resource by 2030;
(b) enter into an agreement with a qualified utility:
(i) with the stipulation of payment by the municipality or county to the qualified utility
for the costs of:
(A) third-party expertise contracted for by the division and the office, for assistance
with activities associated with initial approval of the community renewable energy program;
and
(B) providing notice to the municipality's or county's customers as provided in Section
54-17-905
;
(ii) determining the obligation for the payment of any termination charges under
Subsection 
54-17-905
(3)(b) that are not paid by a participating customer and not included in
participating customer rates under Subsections 
54-17-904
 (2) and (4); and
(iii) identifying the replaced asset;
(c) adopt a local ordinance that:
(i) establishes participation in the renewable energy program; and
(ii) is consistent with the terms of the agreement entered into with the qualified utility
under Subsection (2)(b);
(d) comply with any other terms or conditions required by the commission; and
(e) obtain commission approval for the community renewable energy program as
provided in Section 
54-17-904
.
(3) The local ordinance required in Subsection (2)(c) shall be adopted by the
municipality or county within 90 days after the date of the commission order approving the
community renewable energy program.
Section 4. Section 
54-17-904
 is enacted to read:
 54-17-904.
Authority of commission to approve a community renewable energy
program.
(1) After the commission has adopted administrative rules as required under Section
54-17-909
, a qualified utility may file an application with the commission for approval of a
community renewable energy program.
(2) The application shall include:
(a) the names of each municipality and county to be served by the community
renewable energy program;
(b) a map of the geographic boundaries of each municipality and county;
(c) the number of customers served by the qualified utility within those boundaries;
(d) projected rates for participating customers that take into account:
(i) the estimated number of customers expected to participate in the program;
(ii) the quantifiable costs and benefits to the qualified utility and all of the qualified
utility's customers in their capacity as ratepayers of the qualified utility, excluding costs or
benefits that do not directly affect the qualified utility; and
(iii) the cost of ongoing assets and retail services at the time of the application;
(e) the agreement entered into with the qualified utility under Section 
54-17-903
;
(f) a proposed plan established by the participating community addressing low-income
programs and assistance;
(g) a proposed solicitation process for the acquisition of renewable energy resources as
provided in Section 
54-17-908
; and
(h) any other information the commission may require by rule.
(3) The commission may approve an application for a community renewable energy
program if the commission finds:
(a) the application meets all of the requirements in this section and administrative rules
adopted by the commission in accordance with Sections 
54-17-908
 and 
54-17-909
 to
implement this part; and
(b) the community renewable energy program is in the public interest.
(4) The rates approved by the commission for participating customers:
(a) shall be based on the factors included in Subsection (2)(d) and any other factor
determined by the commission to be in the public interest;
(b) may not result in any shift of costs or benefits to any nonparticipating customer, or
any other customer of the qualified utility beyond the participating community boundaries; and
(c) shall take into account any quantifiable benefits to the qualified utility, and the
qualified utility's customers, including participating customers in their capacity as ratepayers of
the qualified utility, excluding costs or benefits that do not directly affect the qualified utility's
costs of service.
(5) (a) Each municipality or county included in the application shall be a party to the
regulatory proceeding.
(b) A municipality or county identified in the application shall provide information to
all relevant parties in accordance with the commission's rules for discovery, notwithstanding
Title 63G, Chapter 2, Government Records Access and Management Act.
(6) The community renewable energy program may not be implemented until after the
municipality or county adopts the ordinance required in Section 
54-17-903
.
Section 5. Section 
54-17-905
 is enacted to read:
 54-17-905.
Customer participation -- Election not to participate.
(1) After commission approval of a community renewable energy program and
adoption of the ordinance by the participating community as required in Section 
54-17-903
, a
qualified utility shall provide notice to each of its customers within the participating
community that includes:
(a) the projected rates and terms of participation in the community renewable energy
program approved by the commission;
(b) an estimated comparison to otherwise applicable existing rates;
(c) an explanation that the customer may elect to not participate in the community
renewable energy program by notifying the qualified utility; and
(d) any other information required by the commission.
(2) (a) An existing customer of the qualified utility may elect to not participate in the
community renewable energy program and continue to pay applicable existing rates by giving
notice to the qualified utility in the manner and within the time period determined by the
commission.
(b) After implementation of the community renewable energy program:
(i) a customer that previously elected not to participate in the program may become a
participating customer as allowed by commission rules and by giving notice to the qualified
utility in the manner required by the commission; and
(ii) a customer of the qualified utility that begins taking electric service within a
participating community after the date of implementation of the community renewable energy
program shall:
(A) be given notice provided in Subsection (1); and
(B) shall become a participating customer unless the person elects not to participate by
giving notice to the qualified utility in the manner and within the time period determined by the
commission.
(3) A customer that does not opt out of the community renewable energy program
under Subsection (2) may later discontinue participation in the community renewable program
by:
(a) giving notice to the qualified utility, in the manner determined by the commission;
and
(b) paying a termination charge, if applicable, in an amount determined by the
commission that includes the cost of renewable energy resources acquired or constructed for
the community renewable energy program that are not being utilized by participating customers
as necessary to prevent shifting costs to any other customer of the qualified utility.
(4) (a) A customer of a qualified utility that is annexed into the boundaries of a
participating community after the effective date of the community renewable energy program
shall be given notice as provided in Subsection (1) advising the customer of the option to opt
out of the program.
(b) A participating customer located in a county that is annexed into a municipality that
is not a participating community shall continue to be included in the renewable energy
program.
(5) A residential customer that is participating in the net metering program under Title
54, Chapter 15, Net Metering of Electricity, may not be a participating customer under this
part.
(6) (a) The cost of providing notice under Subsection (1) shall be paid by the
participating communities.
(b) All other notices required under this section shall be paid for as program costs and
recovered through participating customers' rates.
Section 6. Section 
54-17-906
 is enacted to read:
 54-17-906.
Customer billing.
The qualified utility shall:
(1) include information on its monthly bills to participating customers identifying the
community renewable energy program cost; and
(2) provide notice to participating customers of any change in rate for participation in
the community renewable energy program.
Section 7. Section 
54-17-907
 is enacted to read:
 54-17-907.
Annual filing -- Modification of rates for participating customers.
(1) (a) The qualified utility may make a rate adjustment filing, not more than annually,
with the commission to adjust rates for participating customers to reflect the quantifiable costs
and benefits of the community renewable energy program.
(b) The adjustment in rates may not include ongoing costs as that term is defined in
Section 
54-17-902
.
(2) The commission shall determine the content and filing requirements for the annual
filing by administrative rules as described in Section 
54-17-909
.
(3) The commission shall determine rate changes which shall become effective within
days after the date of the annual filing, unless otherwise determined by the commission for
good cause.
Section 8. Section 
54-17-908
 is enacted to read:
 54-17-908.
Acquisition of renewable energy resources.
(1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission shall make rules outlining a competitive solicitation process for the acquisition of
renewable assets acquired by the qualified utility for purposes of this act.
(2) The solicitation rules shall include the following provisions:
(a) solar photovoltaic or thermal solar energy facilities may be acquired under the
provisions of Section 
54-17-807
;
(b) renewable energy resources developed under this part shall be constructed or
acquired subject to an option by the qualified utility to own the renewable energy resource so
long as including the option in a solicitation is in the interest of participating customers and any
other customer of the qualified utility; and
(c) any other requirement determined by the commission to be in the public interest.
(3) Upon completion of a solicitation under this section and the rules adopted by the
commission to implement this section, the commission may approve cost recovery for a
renewable energy resource for the community renewable energy program if approval of the
renewable energy resource:
(a) complies with the provisions of this part;
(b) does not result in any shift of costs or benefits to any nonparticipating customer, or
any other customer of the qualified utility beyond the participating community boundaries; and
(c) is in the public interest.
Section 9. Section 
54-17-909
 is enacted to read:
 54-17-909.
Commission rulemaking authority.
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission shall adopt rules to implement this part, including:
(1) the terms and conditions of the agreement under Section 
54-17-903
;
(2) the content and filing of an application under Section 
54-17-904
;
(3) the notice requirements under Section 
54-17-905
;
(4) the standards for determining when a termination charge is applicable and the
amount and timing of any such charge under Subsection 
54-17-905
(3)(b);
(5) the content and filing requirements for the annual filing under Subsection
54-17-907
(2);
(6) the solicitation requirements under Section 
54-17-908
; and
(7) any other requirements determined by the commission necessary to protect the
public interest and to implement this part.