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
 5    By:  Representatives Judy, Rodgers
 6    By:  Senator Riggs
 9                                       For An Act To Be Entitled
11                          2001; AND FOR OTHER PURPOSES.
13                                                    Subtitle
14                             THE ARKANSAS RENEWABLE ENERGY
15                             DEVELOPMENT ACT OF 2001.
20            SECTION 1.  This act shall be known and cited as the "Arkansas Renewable
21    Energy Development Act of 2001".
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.
 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.

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      As Engrossed: S4/9/01                                                             HB2325

 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.
25           SECTION 5.  This act shall become effective on October 1, 2001.
26                                          /s/ Judy
29                                                                 APPROVED:  4/19/2001

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