First Regular Session Sixty-ninth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 13-0210.04 Chuck Brackney x2295 HOUSE BILL 13-1216 HOUSE SPONSORSHIP Duran, Fischer, Tyler SENATE SPONSORSHIP (None), House Committees Senate Committees Transportation & Energy A BILL FOR AN ACT Concerning incentives for distributed renewable energy for municipally owned utilities and cooperative electric associations. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) Existing law directs the Colorado public utilities commission (PUC) to adopt rules implementing the renewable energy portfolio standards for electric utilities, under which increasing amounts of electricity must be generated from renewable sources. The bill directs cooperative electric associations and municipally owned utilities that are qualifying retail utilities to derive at least 0.5% of their retail electricity sales for 2016 through 2019, and 1% from 2020 forward, from distributed generation. Cooperative electric associations and municipally owned utilities must also establish standard offers to purchase renewable energy credits from wind generation. The bill also increases the maximum customer generation capacity for cooperative electric associations so that they may allow net metering for up to 25 kilowatts of residential customer-generated electricity and up to 75 kilowatts of industrial or commercial customer-generated electricity. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 40-2-124, amend (1) (c) (IV), (1) (c) (V) (C), (1) (c) (V) (D), (1) (e) (I.5), (1) (g) (III), and (7) (b) (V); add (1) (e) (I) (C); and repeal (1.5) as follows: 40-2-124. Renewable energy standard - definitions - net metering - legislative declaration. (1) Each provider of retail electric service in the state of Colorado, other than municipally owned utilities that serve forty thousand customers or fewer, shall be considered a qualifying retail utility. Each qualifying retail utility, with the exception of cooperative electric associations that have voted to exempt themselves from commission jurisdiction pursuant to section 40-9.5-104 and municipally owned utilities, shall be subject to the rules established under this article by the commission. No additional regulatory authority of the commission other than that specifically contained in this section is provided or implied. In accordance with article 4 of title 24, C.R.S., the commission shall revise or clarify existing rules to establish the following: (c) Electric resource standards: (IV) To the extent that the ability of a qualifying retail utility to acquire eligible energy resources is limited by a requirements contract with a wholesale electric supplier, the qualifying retail utility shall acquire the maximum amount allowed by the contract. For any shortfalls to the amounts established by the commission pursuant to subparagraph (I) of this paragraph (c), the qualifying retail utility shall acquire an equivalent amount of either renewable energy credits; documented and verified energy savings through energy efficiency and conservation programs; or a combination of both; except that none of these may be used to fulfill the retail distributed renewable energy requirements of sub-subparagraph (C) or (D) of subparagraph (V) of this paragraph (c). Any contract entered into by a qualifying retail utility after December 1, 2004, shall must not conflict with this section. (V) Notwithstanding any other provision of law but subject to subsection (4) of this section, the electric resource standards shall require each cooperative electric association and municipally owned utility that is a qualifying retail utility to generate, or cause to be generated, electricity from eligible energy resources in the following minimum amounts: (C) Six percent of retail electricity sales in Colorado for the years 2015 through 2019, with retail distributed generation equaling at least one-half of one percent of its retail electricity sales for 2016 through 2019; and (D) Ten percent of retail electricity sales in Colorado, with retail distributed generation equaling at least one percent of its retail electricity sales, for the years 2020 and thereafter. (e) A standard rebate offer program, under which: (I) (C) Cooperative electric associations and municipally owned utilities shall also make available to their retail customers a standard rebate offer of a specified amount per watt for the installation of eligible wind and solar electric generation on a customer's premises up to a maximum of seventy-five kilowatts. (I.5) The amount of the standard rebate offer shall be is two dollars per watt; except that the commission may set the rebate at a lower amount if the commission determines, based upon a qualifying retail utility's renewable resource plan or application, that market changes support the change. For cooperative electric associations and municipally owned utilities, the rebate amount may be set lower than two dollars per watt once the retail distributed renewable energy threshold established in sub-subparagraph (C) or (D) of subparagraph (V) of paragraph (c) of this subsection (1) is met. (g) Retail rate impact rule: (III) Subject to the maximum retail rate impact permitted by this paragraph (g), the qualifying retail utility shall have has the discretion to determine, in a nondiscriminatory manner, the price it will pay for renewable energy credits from on-site customer facilities that are no larger than five hundred kilowatts; except that the maximum facility size for cooperative electric associations and municipally owned utilities is seventy-five kilowatts. (1.5) Notwithstanding any provision of law to the contrary, paragraph (e) of subsection (1) of this section shall not apply to a municipally owned utility or to a cooperative electric association. (7) (b) Each municipally owned utility shall allow a customer-generator's retail electricity consumption to be offset by the electricity generated from eligible energy resources on the customer-generator's side of the meter that are interconnected with the facilities of the municipally owned utility, subject to the following: (V) Size specifications. Each municipally owned utility may allow customer-generators to generate electricity subject to net metering in amounts in excess of those specified in this subparagraph (V), and shall allow: (A) Residential customer-generators to generate electricity subject to net metering up to ten twenty-five kilowatts; and (B) Commercial or industrial customer-generators to generate electricity subject to net metering up to twenty-five seventy-five kilowatts. SECTION 2. In Colorado Revised Statutes, 40-9.5-118, amend (2) (e) (I) as follows: 40-9.5-118. Net metering - rules. (2) Each cooperative electric association shall allow a customer-generator's retail electricity consumption to be offset by the electricity generated from eligible energy resources on the customer-generator's side of the meter that are interconnected with the facilities of the cooperative electric association, subject to the following: (e) (I) Size specifications. Each cooperative electric association shall allow: (A) Residential customer-generators to generate electricity subject to net metering up to ten twenty-five kilowatts; and (B) Commercial or industrial customer-generators to generate electricity subject to net metering up to twenty-five seventy-five kilowatts. SECTION 3. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.