SB 152 — An Act relating to community energy facilities.

The commission shall take measures to bring an electric utility that is not in compliance with this subsection into compliance.

(b) An electric utility with an approved community energy plan shall (1) not later than 180 days after the commission approves the utility's SB0152A -3- SB 152 New Text Underlined [DELETED TEXT BRACKETED] 33-LS0607\B plan, credit the accounts of subscribers of each community energy facility in the utility's service area and submit a description of the crediting system to the commission;

(2) purchase the total electrical energy generated by a community energy facility;

(3) measure each subscriber's proportional share of net electric energy generated by a community energy facility during each monthly billing period, and, (A) if the utility supplied more electric energy to the subscriber than the subscriber's proportional share of electric energy supplied to the utility during the monthly billing period, the utility shall bill the subscriber for the number of kilowatt-hours of net electric energy supplied by the utility to the subscriber at the applicable rates contained in the utility's currently effective tariff;

or (B) if the subscriber's proportional share of electric energy supplied to the utility is more than the electric energy the utility supplied to the subscriber during the monthly billing period, the utility shall credit the subscriber's account with an amount derived by multiplying the kilowatt-hours of net electric energy supplied by the community energy bill credit rate mechanism;

the electric utility shall provide a community energy bill credit rate mechanism for subscribers derived from the utility's total aggregate retail rate on a per-customer-class basis, less the distribution cost component approved by the commission;

(4) provide a community energy facility subscriber a single consolidated monthly bill that reflects the subscriber's electric energy use and the amount of the subscriber's credit;

(5) apply a credit to a subscriber's bill not later than one billing cycle after the cycle in which the credited energy was generated;

(6) provide to a subscriber organization each month, in a standardized electronic format, a report providing the total value of bill credits generated by the subscriber organization's community energy facilities in the preceding month and identifying the bill credit amount applied to each of the subscriber organization's SB 152 -4- SB0152A New Text Underlined [DELETED TEXT BRACKETED] 33-LS0607\B subscriber accounts.

(c) The commission shall approve an electric utility's community energy plan if it determines that the plan meets the requirements of this subsection.

If the commission determines that a plan does not meet the requirements of this subsection, it may disapprove or modify the plan.

A community energy plan must (1) reasonably allow for the creation, financing, and accessibility of community energy facilities;

(2) establish uniform standards, fees, and processes for the interconnection of community energy facilities, allowing the utility to recover reasonable interconnection costs for each community energy facility;

(3) apply uniform requirements to utility-owned and other community energy facilities;

(4) allow the utility to recover reasonable administrative costs for a community energy plan;

(5) protect consumers in accordance with existing consumer protection laws;

(6) reasonably allow for the transferability and portability of subscriptions, including allowing a subscriber to retain a subscription to a community energy facility if the subscriber moves to another location served by the utility;

(7) identify the information that must be provided to a potential subscriber to ensure fair disclosure of future costs and benefits of a subscription;

(8) include a plan implementation schedule;

(9) identify all proposed rules, fees, and charges;

(10) identify how the plan will be promoted;

(11) ensure nondiscriminatory and efficient requirements and utility procedures for interconnecting projects;

(12) include mechanisms to ensure that not less than 30 percent of subscribers are low- to moderate-income households;

(13) require the construction of a community energy facility to be performed (A) by employees of contractors and subcontractors who SB0152A -5- SB 152 New Text Underlined [DELETED TEXT BRACKETED] 33-LS0607\B receive a prevailing wage under AS 36.05;

(B) in accordance with the electrical licensing requirements of the state;

(C) by contracting with, for not less than 15 percent of the total contract labor hours for each applicable craft, apprentices registered in an apprenticeship program approved by the United States Department of Labor.

(d) The commission shall ensure that the mechanisms in an electric utility's community energy plan targeted toward low- to moderate-income households are crafted to achieve tangible economic benefits for low- to moderate-income households and integrate with existing complementary programs, including energy efficiency, energy assistance, or workforce development programs.

(e) Notwithstanding another provision of this chapter, the commission may not consider a subscriber organization or an individual subscriber to be an electric utility solely because of the subscriber's participation in a community energy facility.

(f) A community energy facility that applies to an electric utility for interconnection is eligible for interconnection under the utility's community energy plan if the community energy facility (1) is located within the utility's service area;

(2) has a nameplate capacity of not more than five megawatts;

(3) produces electric energy derived from one or more of the following sources:

(A) solar photovoltaic and solar thermal energy;

(B) wind energy;

(C) biomass energy;

(D) hydroelectric energy;

(E) geothermal energy;

(F) hydrokinetic energy;

(G) ocean thermal energy;

(H) landfill gas or biogas produced from organic matter, wastewater, anaerobic digesters, or municipal solid waste;

(I) other sources, as approved by the commission, that have SB 152 -6- SB0152A New Text Underlined [DELETED TEXT BRACKETED] 33-LS0607\B similar environmental effects as the sources in this paragraph;

(4) is used primarily to offset part or all of the subscr'ibers requirements for electric energy;

(5) has a device that converts direct current power into alternating current power to ensure the generated power is compatible with power generated by an electric utility;

and (6) has an electric generator and the accompanying components that connect the electric generator to a utility's electric distribution system, including interface equipment and interface equipment controls, a switchgear, an inverter, and other interface devices;

(7) is owned by a subscriber organization;

(8) issues subscriptions for percentages of its generating capacity;

(9) will offset the electrical energy use of at least five subscribers;

(10) does not have a single subscriber owning subscriptions for more than 40 percent of its output;

and (11) satisfies the requirements of the utility's community energy plan.

(g) A subscriber organization (1) shall provide to the electric utility each month, in a standardized electronic format, a list of its subscribers and the share of energy that is attributable to each subscriber in the community energy facility;

(2) owns, and may sell, accumulate, or retire, the environmental attributes associated with a community energy facility, including renewable energy certificates.

(h) In this section, "low- to moderate-income household" means a household with income that is not more than 80 percent of the area median income based on guidelines from the United States Department of Housing and Urban Development.

Sec.

In AS 42.05.725 - 42.05.735, (1) "community energy facility" is a netrenewable meteringenergy generating facility allowingunder a consumercertificated toelectric receiveutility's compensationcommunity forenergy net-meteredtariff electricitythat fromis not connected to a renewableretail energyconsumer's facilityelectricity notmeter connectedand toprovides all or a portion of the consumer'selectrical electricityenergy meter;requirements of the retail consumer;

(2) "consumer" means a customer of an electric utility described in SB0152A -7- SB 152 New Text Underlined [DELETED TEXT BRACKETED] 33-LS0607\B AS 42.05.725 that consumes the electricity purchased from the utility;

(4) "independent"nameplate electriccapacity" system" means anthe electricmaximum systemrated thatoutput isof nota interconnectedgenerator, withprime anothermover, or other electric system;power production equipment under specific -3- Enrolled SB 152 conditions designated by the manufacturer;

(5) "nameplate"subscriber" capacity" means thean maximumelectric ratedconsumer output of aan generator,electric primeutility mover,who owns one or othermore electriccommunity powerenergy productionfacility equipmentsubscriptions underinterconnected specificwith conditionsthe designatedutility byand who (A) is a residential customer of the manufacturer;utility;

(6)or "net(B) electricis energy" means, as metered by the electric utility for a specifiedcommercial periodcustomer and expressed in kilowatt-hours, the amount by which the quantity of electric energy supplied by the (A) utility towith thean consumerelectricity ordemand subscriber exceeds the quantity of electricless energythan supplied50 bykilowatts theper consumermonth; or subscriber to the utility;

or(6) (B)"subscriber consumerorganization" ormeans subscribera tofor-profit theor utilitynonprofit exceedsentity thethat quantityowns ofor electricoperates energyone suppliedor bymore thecommunity utilityenergy tofacilities; the consumer or subscriber;

(7) "retail"subscription" sales" means salesa ofcontract electricitybetween toa thesubscriber end-useand consumer,a exclusivesubscriber oforganization anythat wholesaleowns sales;a community energy facility.

(8) "subscriber" means a retail electric consumer of an electric utility who owns one or more community energy facility subscriptions interconnected with the utility;

(9) "subscriber organization" means a for-profit or nonprofit entity that owns or operates one or more community energy facilities;

(10) "subscription" means a contract between a subscriber and a subscriber organization that owns a community energy facility.

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