Stricken language would be deleted from and underlined language would be added to the law as it existed prior to this session of the General Assembly. 1 State of Arkansas As Engrossed: S4/9/01 2 83rd General Assembly A Bill Act 1781 of 2001 3 Regular Session, 2001 HOUSE BILL 2325 4 5 By: Representatives Judy, Rodgers 6 By: Senator Riggs 7 8 9 For An Act To Be Entitled 10 THE ARKANSAS RENEWABLE ENERGY DEVELOPMENT ACT OF 11 2001; AND FOR OTHER PURPOSES. 12 13 Subtitle 14 THE ARKANSAS RENEWABLE ENERGY 15 DEVELOPMENT ACT OF 2001. 16 17 18 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 19 20 SECTION 1. This act shall be known and cited as the "Arkansas Renewable 21 Energy Development Act of 2001". 22 23 SECTION 2. (a) Net energy metering encourages the use of renewable 24 energy resources and renewable energy technologies by reducing utility 25 interconnection and administrative costs for small consumers of electricity. 26 Over thirty (30) other states have passed similar laws or regulations in 27 support of net energy metering programs. Increasing the consumption of 28 renewable resources promotes the wise use of Arkansas' natural energy 29 resources to meet a growing energy demand; increases Arkansas' use of 30 indigenous energy fuels while reducing dependence on imported fossil fuels; 31 fosters investments in emerging renewable technologies to stimulate economic 32 development and job creation in the state including the agricultural sectors; 33 reduces environmental stresses from energy production; and provides greater 34 consumer choices. 35 (b) Arkansas has actively encouraged the manufacture of new 36 technologies in the state through promotion of the Emerging Energy Technology *VJF718* 030120011449.VJF718 As Engrossed: S4/9/01 HB2325 1 Development Act of 1999. Net-metering would help to further attract energy 2 technology manufacturers, to provide a foothold for these technologies in the 3 Arkansas economy, and to make it easier for customer access to these 4 technologies. 5 (c) Therefore, the Arkansas General Assembly finds that it is in 6 Arkansas' long-term interest to adopt The Arkansas Renewable Energy 7 Development Act of 2001. 8 9 SECTION 3. For the purposes of this act: 10 (1) "Commission" means the Arkansas Public Service Commission or other 11 appropriate governing body for an electric utility as defined in subsection 12 (b) of this; 13 (2) "Electric utility" means a public or investor-owned utility, an 14 electric cooperative, municipal utility, or any private power supplier or 15 marketer that is engaged in the business of supplying electric energy to the 16 ultimate consumer or any customer classes within the state; 17 (3) "Net metering" means measuring the difference between electricity 18 supplied by an electric utility and the electricity generated by a net- 19 metering customer and fed back to the electric utility over the applicable 20 billing period; 21 (4) "Net-metering customer" means an owner of a net metering facility; 22 and 23 (5) "Net metering facility" means a facility for the production of 24 electrical energy that: 25 (A) Uses solar, wind, hydroelectric, geothermal, or biomass 26 resources to generate electricity including, but not limited to, fuel cells 27 and micro turbines that generate electricity if the fuel source is entirely 28 derived from renewable resources; 29 (B) Has a generating capacity of not more than twenty-five (25) 30 kilowatts for residential or one hundred (100) kilowatts for commercial or 31 agricultural use; 32 (C) Is located in Arkansas; 33 (D) Can operate in parallel with an electric utility's existing 34 transmission and distribution facilities; and 35 (E) Is intended primarily to offset part or all of the net- 36 metering customer requirements for electricity. 2 030120011449.VJF718 As Engrossed: S4/9/01 HB2325 1 2 SECTION 4. (a) An electric utility that offers residential or 3 commercial electrical service, or both, shall allow net-metering facilities to 4 be interconnected using a standard meter capable of registering the flow of 5 electricity in two (2) directions. 6 (b) The commission, following notice and opportunity for public 7 comment: 8 (1) Shall establish appropriate rates, terms and conditions for 9 net-metering contracts, including a requirement that metering equipment be 10 installed to both accurately measure the electricity supplied by the electric 11 utility to each net-metering customer and also to accurately measure the 12 electricity generated by each net-metering customer that is fed back to the 13 electric utility over the applicable billing period; 14 (2) May authorize an electric utility to assess a net-metering 15 customer a greater fee or charge, of any type, if the electric utility's 16 direct costs of interconnection and administration of net-metering outweigh 17 the distribution system, environmental and public policy benefits of 18 allocating the costs among the electric utility's entire customer base; and 19 (3) May expand the scope of net metering to include additional 20 facilities that do not use a renewable energy resource for a fuel or may 21 increase the peak limits for individual net-metering facilities, if so doing 22 results in desirable distribution system, environmental or public policy 23 benefit. 24 25 SECTION 5. This act shall become effective on October 1, 2001. 26 /s/ Judy 27 28 29 APPROVED: 4/19/2001 30 31 32 33 34 35 36 3 030120011449.VJF718