AB 405 — Establishes certain protections for and ensures the rights of a person who uses renewable energy in this State and revises provisions governing net metering. (BDR 52-959)

or - *AB405_R2* – 5 – (2) Purchases electricitygeneratedelectricity generated by a distributed generation system.

- 79th Session (2017) – 5 – 1.

An estimated timeline for the installation of the distributed gen3.atiThe estimated amount of the monthly payments due under the lease in the first year of operation of the distributed generation system.

3.

The estimated amount of the monthly payments due under the lease in the first year of operation of the distributed generation system.

14.the Public Utilities Commission of Nevada, including, without and limitation, a telephone number.

Contact information for the State Contractors’ Board and the Public Utilities Commission of Nevada, including, without limitation, a telephone number.

- *AB405_R2* – 6 – 2.

- 79th Session (2017) – 6 – 3.

6.of the installation or any inspection of the distributed generation system.

The amounts due at the signing for and at the completion of the installation or any inspection of the distributed generation system.

A disclosure notifying the lessee of the transferability of the15.ligThe identification of any state or federal tax incentives that are included in calculating the obligationsamount underof the warrantymonthly topayments adue subsequentunder lessee.the lease.

15.

The identification of any state or federal tax incentives that are included in calculating the amount of the monthly payments due under the lease.

- *AB405_R2* – 7 – 19.

or - 79th Session (2017) – 7 – (b) Death of the lessee.

21.for a period ending not less than 3 business days after the lease ise signed.

The granting to the lessee of the right to rescind the lease for a period ending not less than 3 business days after the lease is signed.

An agreement for the lease of a distributed generation system must include a disclosure that is not more than 3 pages in length and is in at least 10-point font.

(c) The name, mailing address, telephone number, electronic mail address and the number of the contractor’s license of the person responsible for all maintenance of the distributed generation system, if different from the solar installation company;

- *AB405_R2* – 8 – (h) A description of any one-time or recurring fees, including, without limitation, a description of the circumstances that trigger:

- 79th Session (2017) – 8 – (2) Estimated fees for the removal of the distributed generationgenera(3) system;Fees for a notice of removal and refiling pursuant to the Uniform Commercial Code;

(3) Fees for a notice of removal and refiling pursuant to the Uniform Commercial Code;

(3) The estimated annual degradation to the distributed genera(4) As specified by the lease at the time of installation, whether or not an electric utility must credit a customer of the electric utility for any excess energy that is generated by the distributed generation system;

and (4) As specified by the lease at the time of installation, whether or not an electric utility must credit a customer of the electric utility for any excess energy that is generated by the distributed generation system;

and (2) Any conditions on transferring the lease in connection withwit(q) A description of any guarantees of the lesseeperformance sellingof histhe ordistributed hergeneration property;system;

(q) A description of any guarantees of the performance of the distributed generation system;

and - *AB405_R2*79th Session (2017) – 9 – (s) A disclosure concerning the retention of any portfolio energy credits, if applicable.

An agreement for the purchase of a distributed generation system must include a cover page that provides the followingfol1.winThe informationsize inof atthe leastdistributed 10-pointgeneration font:system.

1.

The size of the distributed generation system.

Contact information for the State Contractors’ Board and Public Utilities Commission of Nevada, including, without limitation,limSec. a telephone number.

Sec.

a An agreement for the purchase of a distributed generation system must include, without limitation, the following information in at least 10-point font:

- 79th Session (2017) – 10 – 3.

A description, which includes, without limitation, any assumptions, concerning the design and installation of the - *AB405_R2* – 10 – distributed generation system.

(a) The size of the distributed generation system;

12.purchaser of the distributed generation system and the solar installation company.

A signature block that is signed and dated by the purchaser of the distributed generation system and the solar installation company.

An agreement for the purchase of a distributed generation system must include a disclosure that is not more than 3 pages in length and is in at least 10-point font.

The disclosure described in subsection 1 must be separate from the cover page and agreement described in sections 12 and 13 of this act.

- 79th Session (2017) – 11 – (a) The name, mailing address, telephone number and ele(b) The name, mailing address, telephone number, electronic mail address and number of the contractor’s license of the person who installed the distributed generation system, if different from the solar installation company;

(b) The name, mailing address, telephone number, electronic mail address and number of the contractor’s license of the person - *AB405_R2* – 11 – who installed the distributed generation system, if different from the solar installation company;

(g) A disclosure notifying the purchaser of the responsible party for obtaining approval for connecting the distributed generation system to the electricity meter on the host customer’s side;sid(h) Assumptions concerning the design of the distributed generation system, including, without limitation:

(h) Assumptions concerning the design of the distributed generation system, including, without limitation:

(j) A disclosure describing any warranty for the repair of any damage to the roof of the property owned by the purchaser in connection with the installation or removal of the distributed gen(k) A description of any guarantees of the performance of the distributed generation system;

(k) A description of any guarantees of the performance of the distributed generation system;

and - 79th Session (2017) – 12 – (m) A disclosure concerning the retention of any portfolio energy credits, if applicable.

A power purchase agreement for the sale of the output of a distributed generation system must include a cover pagefont:that that provides the following information in at least 10-point font:1.

- *AB405_R2* – 12 – 1.

11.Public Utilities Commission of Nevada.ay file a complaint with the 12.

Notice that a host customer may file a complaint with the Public Utilities Commission of Nevada.

12.

and - 79th Session (2017) – 13 – (b) The name, mailing address, telephone number and electronic mail address of the person responsible for all maintenance of the distributed generation system, if different from the solar installation company.

3.

The length of the term of the agreement.

The payments made during the first year of the agreement for the price of electricity, which includes, without limitation, the - *AB405_R2* – 13 – price per kilowatt-hour of electricity and the price per monthly system electrical output.

A copy of the warranty for the distributed generation system.sys12..

12.

- 79th Session (2017) – 14 – 16.

A description of any restrictions that the agreement imposes on the modificationdistributed orgeneration transfersystem ofis theaffixed.e property to which the18. distributed generation system is affixed.

18.

- *AB405_R2* – 14 – 21.

The disclosure described in subsection 1 must be separate from the cover page and agreement described in sections 15 and 16 of this act.

(b) The name, mailing address, telephone number, electronic mail address and number of the contractor’s license of the person who installed the distributed generation system, if different from the(c) The name, mailing address, telephone number, electronic mail address and the number of the contractor’s license of the person responsible for all maintenance of the distributed generation system if different from the solar installation company;

(c) The name, mailing address, telephone number, electronic mail address and the number of the contractor’s license of the person responsible for all maintenance of the distributed generation system if different from the solar installation company;

- 79th Session (2017) – 15 – (1) Any late fees;

(2)generation Estimatedsystem;d fees for the removal of the distributed generation(3) system;Fees for a notice of removal and refiling pursuant to the Uniform Commercial Code;

(3) Fees for a notice of removal and refiling pursuant to the Uniform Commercial Code;

- *AB405_R2* – 15 – (2) The estimated amount of production for the distributed generation system in the first year of operation;

and (4) As specified by the agreement at the time of installation, whether or not an electric utility must credit a customer of thetheion, electric utility for any excess energy that is generated by the distributed generation system;

(m)distributed generation system;arantees of the performance of the (n) A description of the basis for any guaranteesestimates of thesavings performancethat ofwere provided to the distributedpurchaser, generationif system;applicable;

(n) A description of the basis for any estimates of savings that were provided to the purchaser, if applicable;

- 79th Session (2017) – 16 – Sec.

If an agreement for the lease or purchase of a distributed generation system or if a power purchase agreement makes a written reference to the price of electricity that is provided by an electric utility, the agreement or power purchase agreement, as applicable, must also provide, in 12-point font, a disclosure in substantially the following form:

in 12-point font, a disclosure in Actual utility rates may go up or down and actual savings may vary.

and - *AB405_R2* – 16 – (b) Expire not earlier than 10 years after the installation of the distributed generation system.

An agreement for the purchase of a distributed generation system must include the following express warranties in writing for the component parts, including parts and labor, of the distributed generation system, either directly from the solar installation company or passed through from the manufacturer of the component parts:

- 79th Session (2017) – 17 – 2.

A violation of any provision of sections 2 to 20, inclusive, of this act constitutes consumer fraud for the purposes of NRS 41.600.

constitutes consumer fraud for the purposes of 4.

- *AB405_R2* – 17 – 2.

(a) In a timely manner;

- 79th Session (2017) – 18 – 6.

Except as otherwise provided in section 27 or 28.3 of this act, remain within the existing broad rate class to which the resident would belong in the absence of a net metering system or a system that generates renewable energy or stores energy, or any combination thereof, without any fees or charges that are different than the fees and charges assessed to customers of the same rate class, regardless of the technologies on the customer’s side of the electricity meter, including, without limitation, energy production, energy savings, energy consumption, energy storage or energy shifting technologies, provided that such technologies do not compromise the safety and reliability of the utility grid.

An electric utility that primarily serves densely populated counties shall, on or before August 1, 2017, file with the Commission in a manner authorized by NRS 704.110 a request that the Commission establish an optional time-variant rate - *AB405_R2* – 18 – schedule for customers, including, without limitation, customer- generators who acquire an energy storage system.

An electric utility that primarily serves less densely populated counties shall, on or before January 16, 2018, file with the Commission in a manner authorized by NRS 704.100 a request that the Commission establish an optional time-variant rate schedule for customers, including, without limitation, customer- generators who acquire an energy storage system.system.ation, customer- 3.

3.

- 79th Session (2017) – 19 – (a) “Electric utility that primarily serves densely populated counties” has the meaning ascribed to it in NRS 704.110.

(c) “Energy storage system” means any commercially available technology that is capable of retaining energy, storingstoringy the energy for a period of time and delivering the energy after storage, including, without limitation, by chemical, thermal or mechanical means.

The credit for each kilowatt-hour of excess electricity described in subsection 1 must equal a percentage, as set forth in subsection 3, of the rate the customer-generator would have paid - *AB405_R2* – 19 – for a kilowatt-hour of electricity supplied by the utility at the time the customer-generator fed the kilowatt-hour of excess electricity back to the utility.

3.to subsection 2 for each kilowatt-hour of excess electricity mustt equal:

The percentage to be used to determine the credit pursuant to subsection 2 for each kilowatt-hour of excess electricity must equal:

- 79th Session (2017) – 20 – (1) On or after the date that the Commission determines that the condition set forth in subparagraph (2) of paragraph (a) has been met;

and (2) Before the date on which the Commission determines and posts on its Internet website its determination that the cumulative installed capacity of all net metering systems in this State with a generating capacity of not more than 25 kilowatts for customer generators who accepted the offer of the utility for net metering on or after the date described in subparagraph (1) is equal to 80 megawatts;

On or before the 15th day of each calendar month, a utility shall post on its Internet website and report to the Commission the - *AB405_R2* – 20 – cumulative installed capacity of the net metering systems with a capacity of not more than 25 kilowatts for which a customer-customer-th a generator has accepted the offer of that utility as of the close of business of the utility on the last business day of the immediately preceding calendar month.

A customer-generator who accepted the offer of the utility for net metering before the effective date of this section and whose net metering system has a capacity of not more than 25 kilowatts may, but is not required to, submit a request to be treated for all purposes, including, without limitation, for the purposes of - 79th Session (2017) – 21 – subsection 3, as a customer-generator who accepted the offer of the utility for net metering on the date of submitting the request.

The Commission shall open an investigatory docket to establish a methodology to determine the impact, if any, of net metering pursuant to NRS 704.766 to 704.775, inclusive, and sections 27 to 29, inclusive, of this act on rates charged by a utility to its customers in this State.

(c) The data used to make the calculations required by paragraph (a), including, without limitation, avoided generation capacity, avoided transmission and generation capacity and avoidedavo(d) systemA upgrades;comparison of the impact on rates of net metering pursuant to NRS 704.766 to 704.775, inclusive, and sections 27 to 29, inclusive, of this act and the impact on rates of capital expenditures by the utility;

- *AB405_R2* – 21 – (d) A comparison of the impact on rates of net metering pursuant to NRS 704.766 to 704.775, inclusive, and sections 27 to 29, inclusive, of this act and the impact on rates of capital expenditures by the utility;

Each person providing electric service in that service territory shall be deemed to be a utility for the purposes of - 79th Session (2017) – 22 – NRS 704.766 to 704.775, inclusive, and sections 27 to 29, inclusive, of this act;

The Commission or any other agency designated by law to regulate electric service in this State shall prohibit any person providing electric service in the service territory from impeding or interrupting the operation or performance or otherwise restrict thether output of an existing net metering system;

(b) After the date on which the cumulative capacity requirement described in paragraph (a) is met, in accordance with a tariff filed by the utility and approved by the Commission pursuant totoa NRStariff 704.7735.]filed -by *AB405_R2*NRS –704.7735.] 22 – 2.

(c) Except as otherwise provided in subsection [5,] 7, shall not charge [a] the customer-generator any fee or charge that [would increase the customer-generator’s minimum monthly charge to an - 79th Session (2017) – 23 – amount greater] is different than that [of] charged to other customers of the utility in the [same] rate class [as] to which the customer-generator [.] would belong if the customer-generator did not have a net metering system.

(d) Shall not reduce the minimum monthly charge of the customer-generator based on the electricity generated by the customer-generator and fed back to the utility.

[¬] 4.metering system, the utility must allow a customer-generatorn of a net governed by [this] subsection 3 to pay the entire cost of the installation or upgrade of the portion of the net metering system.

At[4.] the5. time of installation or upgrade of any portion of a net metering system, the utility must allow a customer-generator governed by [this] subsection 3 to pay the entire cost of the installation or upgrade of the portion of the net metering system.

- *AB405_R2* – 23 – [4.] 5.

(a) The system is intended primarily to offset part or all of the customer-generator’s requirements for electricity on property - 79th Session (2017) – 24 – contiguous to the property on which the net metering system is located;

and (b) The customer-generator sells or transfers his or her interest in the contiguous property, ¬ the net metering system ceases to be eligible to participate in net metering.

metering system ceases to be eligible to participate in net [5.] 7.

(a) Retaining the percentage set forth in subsection 3 of section 28.3 of this act to be used to determine the credit for electricity governed by paragraph (c) of subsection 2 of NRSNRSfor 704.775, which is applicable to the customer-generator;

- *AB405_R2* – 24 – 9.

and - 79th Session (2017) – 25 – (3) Interconnection, ¬ based on the allowable size of the net metering system.

(b) The particular provisions, limitations and responsibilities of a customer-generator and the utility which must be included in a standardsta(c) A timeline for processing applications and contracts for net metering contract.applicants.

(c) A timeline for processing applications and contracts for net metering applicants.

(1) Neither the utility nor the customer-generator is entitled to compensation for the electricity provided to the other during the billing(2) The excess electricity which is fed back to the utility during the billing period is carried forward to the next billing period as an addition to the kilowatt-hours generated by the customer- generator in that billing period.

(2) The excess electricity which is fed back to the utility during the billing period is carried forward to the next billing period as an addition to the kilowatt-hours generated by the customer- generator in that billing period.

- *AB405_R2* – 25 – In that case, the excess electricity carried forward must be apportioned evenly among the available time-of-use periods.

- 79th Session (2017) – 26 – (I) The net metering system ceases to operate or is disconnected from the utility’s transmission and distribution facilities;

(II) The customer-generator ceases to be a customer of the utilityutilit(III) atThe thecustomer-generator premisestransfers served by the net metering system;system to another person.

or (III) The customer-generator transfers the net metering system to another person.

Not later than 45 days after the effective date of this act, a utility shall file with the Public Utilities Commission of Nevada any amendments to its tariff or tariffs that are necessary to complycom2.y withwAs used in this section, “utility” has the provisionsmeaning ofascribed sectionto 28.3it ofin thisNRS act.704.772.

2.

As used in this section, “utility” has the meaning ascribed to it in NRS 704.772.

- *AB405_R2* – 26 – 3.

If the Legislature provides by law for an open, competitive retail electric energy market for all electricity customers within a service territory, including, without limitation, if the Legislature - 79th Session (2017) – 27 – does so as a result of the proposed state constitutional amendment known as the Energy Choice Initiative, section 28.7 of this act becomes effective with regard to the customers within that service territory on the date on which such customers have the right to choose the provider of their electric utility service pursuant to that law.

TEXT~~~~~ OF17 REPEALED- SECTION79th 704.7735Session Utility(2017) required to offer net metering in accordance with tariff after certain cumulative capacity requirements are met.

1.

Except as otherwise provided in subsection 3, each utility shall, in accordance with a tariff filed by the utility and approved by the Commission, offer net metering to customer-generators who submit applications to install net metering systems within its service territory after the date on which the cumulative capacity requirement described in paragraph (a) of subsection 1 of NRS 704.773 is met.

2.

For the purposes of evaluating and approving any tariff filed with the Commission pursuant to subsection 1 and otherwise carrying out the provisions of this section, the Commission:

(a) May establish one or more rate classes for customer-generators.

(b) May establish terms and conditions for the participation by customer-generators in net metering, including, without limitation, limitations on enrollment in net metering which the Commission determines are appropriate to further the public interest.

(c) May close to new customer-generators a tariff filed pursuant to subsection 1 and approved by the Commission if the Commission determines that closing the tariff to new customer-generators is in the public interest.

(d) May authorize a utility to establish just and reasonable rates of costs from customer-generators to other customers of the utility.

(e) Shall not approve a tariff filed pursuant to subsection 1 or authorize any rates or charges for net metering that unreasonably - *AB405_R2* – 27 – shift costs from customer-generators to other customers of the uti3.tyIn approving any tariff submitted pursuant to subsection 1, the Commission shall determine whether and the extent to which any tariff approved or rates or charges authorized pursuant to this section are applicable to customer-generators who, on or before the paragraph (a) of subsection 1 of NRS 704.773 is met, submitted a complete application to install a net metering system within the service territory of a utility.

H - *AB405_R2*