SB 358 — Revises provisions relating to the renewable energy portfolio standard. (BDR 58-301)

NRS 701.380 is hereby amended to read as follows:

701.380 1.

The Director shall:

(2) Create incentives for investment in and the use of renewable energy and measures which conserve or reduce the demanddemand(3) forDistribute energygrants orand whichother resultmoney into moreestablish efficientprograms. use of energy.

(3) Distribute grants and other money to establish programs and projects which incorporate the use of renewable energy and measures which conserve or reduce the demand for energy or which result in more efficient use of energy.

(c) Take any other actions that the Director deems necessary to carry out the duties of the Office of Energy, including, without limitation, contracting with consultants, if necessary, for the - *SB358_R2* – 5 – purposes of program design or to assist the Director in carrying out the duties of the Office.

2.activities and programs of the Office of Energy and submit thehe report to the Legislative Commission and the Governor on or before January 30 of each year.

The Director shall prepare an annual report concerning the activities and programs of the Office of Energy and submit the report to the Legislative Commission and the Governor on or before January 30 of each year.

(c)- The80th amountSession of(2019) money– distributed5 for– each activity and program from the Trust Account for Renewable Energy and Energy Conservation and a detailed description of the use of that money for each activity and program;

(1) That uses renewable energy as defined in NRS [704.7(2)[704.7811] That704.7715 isto locatedgenerate onelectricity; the property of a customer of an electric utility;

meter;(3)(2) That is connectedlocated on the customer’sproperty side of thea electricity (4) That provides electricity primarily to offset customer loadof onan thatelectric property;utility;

and(3) (5)That The excess generation from which is periodicallyconnected exportedon to the gridcustomer’s inside accordanceof with the provisionselectricity governingmeter; net metering systems used by customer-generators pursuant to NRS 704.766 to 704.777, inclusive.

on that property;

andes electricity primarily to offset customer load (5) The excess generation from which is periodically exported to the grid in accordance with the provisions governing net metering systems used by customer-generators pursuant to NRS 704.766 to 704.777, inclusive.

-ownership *SB358_R2*may, –in 6a –plan Sec.filed pursuant to NRS 704.741 or ann amendment to such a plan, request that the Commission establish a just and reasonable price for the energy produced by a renewable energy facility owned by such utility or utilities by means of reference to a competitive market rate.

6.A request pursuant to this subsection must include a request that the Commission exclude any capital investment associated with the renewable energy facility from the rate base of the utility or - 80th Session (2019) – 6 – utilities and expenses associated with such facility from the revenue requirement of the utility or utilities.

1.

A utility or two or more utilities under common ownership may, in a plan filed pursuant to NRS 704.741 or an amendment to such a plan, request that the Commission establish a just and reasonable price for the energy produced by a renewable energy facility owned by such utility or utilities by means of reference to a competitive market rate.

A request pursuant to this subsection must include a request that the Commission exclude any capital investment associated with the renewable energy facility from the rate base of the utility or utilities and expenses associated with such facility from the revenue requirement of the utility or utilities.

If the Commission grants the request, any capital investment made by the utility or utilities in such a renewable energy facility must be excluded from the rate base of the utility or utilities and all expenses associated with the facility must be excluded from the revenue requirement of the utility or utilities.

The Commission may determine a competitive market price based on the results of a reasonably contemporaneous competitive request for proposals for a substantially similar product with substantially similar terms and conditions, including duration of the proposal.

or3. utilities pursuant to NRS 704.741 or an amendment to such aility plan that includes a provision for the acquisition of a renewable energy facility, the Commission may establish reasonable performance terms and conditions for the generation and sale of the electricity.

In an order approving or modifying a plan filed by a utility or utilities pursuant to NRS 704.741 or an amendment to such a plan that includes a provision for the acquisition of a renewable energy facility, the Commission may establish reasonable performance terms and conditions for the generation and sale of the electricity.

The Commission shall establish by regulation a mechanism by which a utility that is authorized to charge its customers a just and reasonable price established by the Commission for the electricity generated by a renewable energy facility may account for the electricity generated by the renewable energy facility and charge the just and reasonable price for thatthatle electricity to its customers through the mechanism set forth in NRS 704.187.

At the conclusion of the term, the Commission shall not allow the utility to include the remaining - *SB358_R2* – 7 – capital investment, if any, associated with such a facility in the utility’s rate base or to include any expenses associated with the facility in the utility’s revenue requirement.

The Commission may establish regulations for the utility to make a proposal regarding recovery of a just and reasonable price for energy produced by the facility beyond the initial term approved by the Commission by filing a plan pursuant to NRS 704.741 or an amendment to such a plan.- 80th Session (2019) – 7 – Commission before any other costs associated with the facility are charged to customers through the mechanism set forth in NRS 704.187.

Any such proposal must be reviewed and approved by the Commission before any other costs associated with the facility are charged to customers through the mechanism set forth in NRS 704.187.

The Commission has accepted a provision of a plan or an theamendment purchaseto ofa theplan electricitypursuant generatedto byNRS the704.751 renewablethat energyprovides for facility pursuant to an agreement for the purchase of that ele2.ricTheenergy utilityelectricity. provides a notice to the Commission which states:

2.

The utility provides a notice to the Commission which states:

(b) The contract price originally approved by the Commission will be the just and reasonable price that the utility will charge its customerspursuant forto electricitythe generatedaccounting mechanism set forth in NRS 704.187;cility (c) The utility agrees to be bound by all of the renewableterms energyand facilityconditions of the agreement for the purchase of the electricity that was accepted by the Commission pursuant to NRS 704.751 and acknowledges that, following the accountingconclusion mechanismof setthe forthterm inof NRSthe 704.187;agreement, the utility may not include:

(c) The utility agrees to be bound by all of the terms and conditions of the agreement for the purchase of the electricity that was accepted by the Commission pursuant to NRS 704.751 and - *SB358_R2* – 8 – acknowledges that, following the conclusion of the term of the agreement, the utility may not include:

or - 80th Session (2019) – 8 – (2) Any expense associated with the renewable energy facility in the utility’s revenue requirement;

and (d) That the utility acknowledges that, at the conclusion of the existing term of the agreement, the utility may not include a just and reasonable charge for the price of the electricity produced by the renewable energy facility in the deferred accountingaccountingroduced by mechanism set forth in NRS 704.187 unless the Commission approves a just and reasonable charge by reference to a competitive market price through a plan filed pursuant to NRS 704.741, or an amendment to such plan, filed by the utility pursuant to the regulations adopted by the Commission pursuant to subsection 4 of section 6 of this act.

Become a leading producer and consumer of clean and renewable energy, with a goal of achieving by 2050 an amount of energy production from zero carbon dioxide emission resources equal to the total amount of electricity sold by providers of electric service in this State;

and energy3. systems and energy efficiency measures are received by the residents of this State.

SuchEnsure benefitsthat include,the withoutbenefits limitation,of improvedthe airincreased quality,use reducedof water use, a more diverse portfolio ofenergy resourcessystems forand generatingenergy electricity,efficiency reducedmeasures fossilare fuelreceived consumptionby andthe moreresidents stable rates for retail customers of electricthis service.State.

Such benefits include, without limitation, improved air quality, reduced water use, a more diverse portfolio of resources for generating electricity, reduced fossil fuel service.ion and more stable rates for retail customers of electric Sec.

Persons engaged in the production and sale of natural gas, other than sales to the public, or engaged in the transmission of - *SB358_R2* – 9 – natural gas other than as a common carrier transmission or distribution line or system.

- 80th Session (2019) – 9 – 2.

and (b) Their gross sales for water or services for the disposal of sewage, or both, amounted to $25,000 or less during thethedisposal of immediately preceding 12 months.

defined6. in NRS 366.060.

Persons who are engaged in the sale or use of special fuel as 7.defined in NRS 366.060.

Persons7. who provide water from water storage, transmission transmission or treatment of water from mining operations.torage, 8.

Persons who areprovide videowater servicefrom providers,water asstorage, definedtransmission inand NRStreatment 711.151,facilities exceptif for those operationsfacilities ofare thefor video service provider which consist of providing a telecommunication service to the public,storage, intransmission whichor casetreatment the video service provider is a public utility only with regard to those operations of thewater videofrom servicemining provideroperations. which consist of providing a telecommunication service to the public.

8.

Persons who are video service providers, as defined in NRS which consist of providing a telecommunication service to thevider public, in which case the video service provider is a public utility only with regard to those operations of the video service provider which consist of providing a telecommunication service to the public.

- *SB358_R2*80th Session (2019) – 10 – (b) Used to produce not more than 150 percent of that other person’s requirements for electricity on an annual basis for the premises on which the individual system is located;

and (c) Not part of a larger system that aggregates electricity generatedthan fromthe renewablepremises energyon forwhich resalethe orindividual usesystem onis premiseslocated.s other than theAs premisesused onin whichthis subsection, “renewable energy” has the individualmeaning systemascribed isto located.it in NRS [704.7811.] 704.7715.

 As used in this subsection, “renewable energy” has the meaning ascribed to it in NRS [704.7811.] 704.7715.

(a) Pursuant to paragraph (a) of subsection 1 shall include in its annual report to the Commission a statement showing, for the period of recovery, the allocated rate of return for each of its operating departments in this State using deferred accounting.

its(b) annualPursuant report to theparagraph Commission(b) anyof informationsubsection that1 isudeshall include in required to be included in the annual report by the regulations adopted pursuant to section 6 of this act.

An electric utility that, pursuant to section 6 of this act, is approved by the Commission to charge a just and reasonable price for the electricity generated by a renewable energy facility shall file- deferred80th energySession accounting(2019) adjustments– in11 accordance– with the regulations adopted pursuant to section 6 of this act.act.with 6.

- *SB358_R2* – 11 – 6.

(2) Holds a certificate of public convenience and necessity issuedissued(3) In the most recently completed calendar year or transferredin pursuantany toother calendar year within the 7 calendar years immediately preceding the most recently completed calendar year, had a gross operating revenue of $250,000,000 or more in this chapter;State.

and (3)The Interm thedoes mostnot recentlyinclude completeda calendarcooperative yearassociation, ornonprofit incorporation, anynonprofit otherassociation calendaror yearprovider withinof theelectric 7service calendarwhich yearsis immediatelydeclared precedingto thebe mosta recentlypublic completedutility calendarpursuant year,to hadNRS a704.673 grossand operatingwhich revenueprovides ofservice $250,000,000only orto moreits inmembers. this State.

(d) The term does not include a cooperative association, nonprofit corporation, nonprofit association or provider of electric service which is declared to be a public utility pursuant to NRS 704.673 and whi(d) “Renewable energy facility” has the meaning ascribed to it in NRS 704.7315.

704.675.7.Every cooperative association or nonprofit corporation or association and every other supplier of services described in this chapter supplying those services for the use of its own members only is hereby declared to be affected with a public interest, to be a public utility, and to be subject to the jurisdiction, control and regulation of the Commission for the purposes of NRS 703.191, 704.330 , [and] 704.350 to 704.410, inclusive, and 704.7821, but not to any other jurisdiction, control and regulation of the Commission or to the provisions of any section not specifically mentioned in this section.

11.7.

NRS 704.675 is hereby amended to read as follows:

704.675 Every cooperative association or nonprofit corporation or association and every other supplier of services described in this chapter supplying those services for the use of its own members only is hereby declared to be affected with a public interest, to be a regulation of the Commission for the purposes of NRS 703.191,l and 704.330 , [and] 704.350 to 704.410, inclusive, and 704.7821, but not to any other jurisdiction, control and regulation of the Commission or to the provisions of any section not specifically mentioned in this section.

Sec.

- 80th Session (2019) – 12 – As used in this section, “renewable energy” has the meaning ascribed to it in NRS [704.7811.] 704.7715.

704.736 The application of NRS 704.736 to 704.754, inclusive, and sections 5, 6 and 7 of this act is limited to any public utility in - *SB358_R2* – 12 – the business of supplying electricity which has an annual operatingoperatingy in revenue in this state of $2,500,000 or more.

“Renewable energy” [has the meaning ascribed to it(a) inBiomass;4.7811.] NRS 704.7811.] means:

(e)(d) Wind.power;Waterpower;

and 2.(e) Wind.

2.

Except as otherwise provided in this subsection, the term includes, without limitation, power derived from water that has been pumped from a lower to a higher elevation if the generating capacity of the plant, facility, equipment- or80th systemSession for(2019) which– the13 water– is used is not more than 30 megawatts.

The term does not include power:power:d is not more than (a) Derived from water stored in a reservoir by a dam or similar device, unless:

(a) Derived from water stored in a reservoir by a dam or similar device, unless:

and - *SB358_R2* – 13 – (3) The generating capacity of the plant, facility, equipment or system for which the water is used is not more than 30 megawatts;

and (2) The generating capacity of the plant, facility, equipment ormegawatts.for system for which the water is used is not more than 30 megawatts.Sec.

Sec.

(a) Placed into operation before July 1, 1997, if a provider of electric service used electricity generated or acquired from the renewable energy system to satisfy its portfolio standard before July 1, 2009;

Sec.- 80th Session (2019) – 14 – 704.7808 1.

20.“Provider of electric service” and “provider”s:

NRSmean 704.7808any person or entity that is herebyin amendedthe business of selling electricity to readretail ascustomers follows:for consumption in this State, regardless of whether the person or entity is otherwise subject to regulation by the Commission.

704.7808 1.

“Provider of electric service” and “provider” mean any person or entity that is in the business of selling electricity to retail customers for consumption in this State, regardless of whether the person or entity is otherwise subject to regulation by the Commission.

The term includes, without limitation, a provider of new electric resources that is selling electricity to an eligible customer - *SB358_R2* – 14 – for consumption in this State pursuant to the provisions of chapter 704B of NRS.

(b) A rural electric cooperative established pursuant to chapter 81 of NRS.

(e) A cooperative association, nonprofit corporation, nonprofit association or provider of electric service which is declared to be a public utility pursuant to NRS 704.673 and which provides service only to its members.

(c) Solar energy;

and (e)2. Wind.

anyThe otherterm fossildoes fuel,not orinclude nuclearcoal, energy.uralnatural gas, oil, propane or 3.any other fossil fuel, or nuclear energy.

3.

[if the generating capacity of the plant, facility, equipment or system is not more than 30 megawatts.] Except as otherwise provided in this subsection, the term includes, without limitation, power derived from water that has been pumped from a lower to a higher elevation if- the80th generatingSession capacity(2019) of– the15 plant,– facility, equipment or system for which the water is used is not more than 30 megawatts [.] , andandtem the plant, facility, equipment or system was in existence and used to derive power from pumped water before January 1, 2019.

and - *SB358_R2* – 15 – (3) The generating capacity of the plant, facility, equipment or system for which the water is used is not more than 30 megawatts;

(1) The] the primary purpose of the use of the fossil fuel is not the creation of the power [;

andandof the use of the fossil fuel is (2) The generating capacity of the plant, facility, equipment or system for which the water is used is not more than 30 megawatts.] ;

(a) This state, a political subdivision of this state or an agency or instrumentality of this state or political subdivision of this stateystate or when it is an end-use customer that purchases electricity for consumption in this state, including, without limitation, when it is an eligible customer that purchases electricity for consumption in this state from a provider of new electric resources pursuant to the provisions of chapter 704B of NRS.

(b)- A80th residential,Session commercial(2019) or– industrial16 end-use– customer that purchases electricity for consumption in this state, including, that without limitation, an eligible customer that purchases electricity for consumption in this state from a provider of new electric resources pursuant to the provisions of chapter 704B of NRS.

- *SB358_R2* – 16 – Sec.

[The] Except as otherwise provided in subsections 6, 8 and 9, the portfolio standard must require each provider to generate, acquire or save electricity from portfolio energy systems or efficiency measures in an amount tha(a) For calendar years 2005 and 2006, not less than 6 percent of the total amount of electricity sold by the provider to its retail customers in this State during that is:calendar year.

(a) For calendar years 2005 and 2006, not less than 6 percent of the total amount of electricity sold by the provider to its retail customers in this State during that calendar year.

(f)than For20 calendarpercent yearsof 2015the throughtotal 2019,amount inclusive,of notelectricity lesssold by thess provider to its retail customers in this State during that calendar year.

(g) For calendar [years] year 2020 , [through 2024, inclusive,] not less than 22 percent of the total amount of electricity sold by the provider to its retail customers in this State during that calendar year.

(h)- For80th calendarSession year(2019) 2021,– not17 less– than 24 percent of the total amount of electricity sold by the provider to its retail customers in this State during that calendar year.

- *SB358_R2* – 17 – (l) For calendar year [2025] 2030 and for each calendar year thereafter, not less than [25] 50 percent of the total amount of electricity sold by the provider to its retail customers in this State duringdur2.g thattIn calendaraddition year.to the requirements set forth in subsection 1, the portfolio standard for each provider must require that:

2.

In addition to the requirements set forth in subsection 1, the portfolio standard for each provider must require that:

(1) During calendar years 2013 and 2014, not more than 25 percentpercent(2) ofDuring thateach amountcalendar mayyear be2015 basedto on2019, energyinclusive, efficiencynot; measures;

(2) During each calendar year 2015 to 2019, inclusive, not more than 20 percent of that amount may be based on energy efficiency measures;

(3) During each calendar year 2020 to 2024, inclusive, not more than 10 percent of that amount may be based on energye,energy not efficiency measures;

and (4) For calendar year 2025 and each calendar year thereafter, no portion of that amount may be based on energy efficiencyreafter,efficiency measures.

- If80th theSession provider(2019) intends– to18 use– energy efficiency measures to comply with its portfolio standard during any calendar year, of the total amount of electricity saved from energy efficiency measures for which the provider seeks to obtain portfolio energy credits pursuant to this paragraph, at least 50 percent of that amount must be saved from energy efficiency measures installed at service locations of residential customers of the provider, unless a different percentage is approved by the Commission.

If the provider is a - *SB358_R2* – 18 – utility provider and the Commission approves the terms and conditions of the contract between the utility provider and the other party, the contract and its terms and conditions shall be deemed totoer be a prudent investment and the utility provider may recover all just and reasonable costs associated with the contract.

5.shall comply with its portfolio standard during each calendar year.

Except as otherwise provided in subsection 6, each provider shall comply with its portfolio standard during each calendar year.

If, for any calendar year, a provider is unable to comply with its portfolio standard through the generation of electricity from its own renewable energy systems or, if applicable, through the use of portfolio energy credits, the provider shall take actions to acquire or save electricity pursuant to one or more renewable energy contracts or energy efficiency contracts.

[If the Commission determines that, for a calendar year, there is not or will not be a sufficient supply of toelectricity theor providera pursuantsufficient toamount renewableof energy contractssavings andmade energyleavailable - 80th Session (2019) – 19 – efficiency contracts with just and reasonable terms and conditions, the] The Commission shall exempt the provider, for that calendar year, from the remaining requirements of its portfolio standard or from any appropriate portion thereof, as determined by the Commission [.] if the Commission determines that:

or (b) The provider is unable to obtain a sufficient supply of electricity to comply with the portfolio standard because of a delay in the completion of the construction of a renewable energy system, or the underperformance of an existing renewable energy system, that is under the control of a person or entity other than thethe7. provider and that was intended to provide such electricity.

-The *SB358_R2*Commission –shall 19adopt –regulations 7.that establish:ty.

The Commission shall adopt regulations that establish:

8.provisions of this section do not apply to a provider of new electric resources as defined in NRS 704B.130.] For the purposes of subsection 1, for calendar year 2019 and for each calendar year thereafter, the total amount of electricity sold by a provider to its retail customers in this State during a calendar year does not include the amount of electricity sold by the provider as part of a program of optional pricing authorized by the Commission pursuant to which the provider either transfers portfolio energy - 80th Session (2019) – 20 – renewable energy portfolio standard on behalf of the customer.ove the 9.

[Except as otherwise provided in NRS 704.78213, the provisions of this section do not apply to a provider of new electric resources as defined in NRS 704B.130.] For the purposes of subsection 1, for calendar year 2019 and for each calendar year thereafter, the total amount of electricity sold by athe providerfollowing providers to itstheir retail customers in this State during a calendar year does not include the amountfirst 1,000,000 megawatt-hours of electricity sold by the provider as part of a program of optional pricing authorized by the Commission credits to thesuch customercustomers orduring retiresthat portfoliocalendar energyyear: credits above the renewable energy portfolio standard on behalf of the customer.

and(a) forA eachrural calendarelectric yearcooperative thereafter,established thepursuant totalto amountchapter ofrof 2019NRS electricitythat soldis by the following providers to their retail customers in thisexistence Stateon during a calendar year does not include the firsteffective 1,000,000date megawatt-hours of electricitythis soldact. by the provider to such customers during that calendar year:

(a) A rural electric cooperative established pursuant to chapter 81 of NRS that is in existence on the effective date of this act.

(d) A cooperative association, nonprofit corporation, nonprofit association or provider of electric service which is declared to be a public utility pursuant to NRS 704.673, which provides service only to its members and which is in existence and providing retail electric service on the effective date of this act.

- *SB358_R2* – 20 –  Such providers do not earn energy portfolio credits under the system of energy portfolio credits established by the Commission pursuant to subsection 4 for electricity generated or acquired by the provider from renewable energy systems to make the first 1,000,000 megawatt-hours of sales to retail customers within this State within a calendar year.

A provider listed in subsection 9 shall, during any calendar year in which the total amount of electricity sold by the provider to its retail customers in this State during that calendar year is less than 1,000,000 megawatt-hours, submit to the Commission, after the end of the calendar year and within the time prescribed by the Commission, a report of the total amount of electricity sold to its retail customers in this State for that calendar year.

The providers described in paragraphs (a) and (d) of that calendar subsection 9 shall submit the report required by this subsection to the Commission as part of the annual report filed by such a provider as required by NRS 703.191.

(b)- “Renewable80th energySession contract”(2019) means– a21 contract– toelectricity acquirefrom operatedone or controlledmore byrenewable otherenergy parties.nergy systems owned,owned,re (c)operated “Terms and conditions” includes, without limitation, the renewable energy contract or tocontrolled attainby energyother savingsparties. pursuant to an energy efficiency contract.

(c) “Terms and conditions” includes, without limitation, the price that a provider must pay to acquire electricity pursuant to a renewable energy contract or to attain energy savings pursuant to an energy efficiency contract.

The portfolio standard must require the provider of new electric resources to generate, acquire or save electricity from portfolio energy systems or efficiency measures in the amounts described in the portfolioportfolioems standard set forth in NRS 704.7821 .

[which is effective on the date on which the order approving the application or request is approved.] - *SB358_R2* – 21 – 2.

(a) If the order was issued by the Commission before JanuaryJan(b) 1,For 2019;calendar years before 2025.

and (b) For calendar years before 2025.

If, for the benefit of one or more eligible customers, the eligible customer of a provider of new electric resources has paid for or directly reimbursed, in whole or in part, the costs of the acquisition or installation of a solar energy system which qualifies as a renewable energy system and which reduces the consumption of electricity, the total reduction in the consumption of electricity during each calendar year that results from the solar energy system shall be deemed to be electricity that the provider of new electric - 80th Session (2019) – 22 – resources generated or acquired from a renewable energy system for the purposes of complying with its portfolio standard.

(a)4. “Eligible customer” has the meaning ascribed to it in NRS 704B.080.

ascribedAs toused it in NRSthis 704B.130.csection: resources” has the meaning Sec.

(a) “Eligible customer” has the meaning ascribed to it in NRS(b) “Provider of new electric resources” has the meaning ascribed to it in NRS 704B.130.

Sec.

(a) The amount of electricity which the provider generated, acquired or saved from portfolio energy systems or efficiency - *SB358_R2* – 22 – measures during the reporting period and, if applicable, the amount of portfolio energy credits that the provider acquired, sold or traded during the reporting period to comply with its portfolio standard;

(b) The capacity of each renewable energy system owned, operated or controlled by the provider, the total amount of electricity generated by each such system during the reporting period and the percentage of that total amount which was generated directly from renewable energy;

Based on the reports submitted by providers pursuant to this section, the Commission shall compile information that sets forth whether any provider has used energy efficiency measures to comply- with80th itsSession portfolio(2019) standard– and,23 if– so, the type of energy efficiency measures used and the amount of energy savingssavingsf energy attributable to each such energy efficiency measure.

(a) The Legislature, not later than the first day of each regular session;

andegislature,and not later than the first day of each regular (b) The Legislative Commission, if requested by the Chair of the Com6.ssTheCommission. provisions of this section do not apply to:

6.

The provisions of this section do not apply to:

or (b) A provider of electric service that is listed in subsection 9 of NRS 704.7821 during any calendar year in which the total amount of electricity sold by the provider to its retail customers in this State during that calendar year is less than 1,000,000 megawatt-megawatt-hours. hours.

NRS 704.7828 is hereby amended to read as follows:fol704.7828 1.

704.7828 1.

- *SB358_R2* – 23 – 2.

(a) The Commission shall authorize the provider to carry forward to subsequent calendar years for the purpose of complying with the portfolio standard for those subsequent calendar years any excess kilowatt-hours of electricity that the provider generates, acquires or saves from portfolio energy systems or efficiency measures;mea(b) By more than 10 percent but less than 25 percent of the amount of portfolio energy credits necessary to comply with its portfolio standard for the subsequent calendar year, the provider may sell any portfolio energy credits which are in excess of 10 percent of the amount of portfolio energy credits necessary to comply with its portfolio standard for the subsequent calendar year;

(b)and (c) By more25 than 10 percent butor lessmore than 25 percent of the amount of portfolio energy credits necessary to comply with its portfolio standard for the subsequent- calendar80th year,Session the(2019) provider– may24 – to sell any portfolio energy credits which are in excess of 1025 percent of the amount of portfolio energy credits necessary to comply with its portfolio standard for the subsequent calendar year;year.

and (c)Any Bymoney 25received percentby ora moreprovider offrom the amountsale of portfolio energy credits necessarypursuant to complyparagraphs with(b) itsand portfolio(c) standardmust forbe credited against the subsequentprovider’s calendarcosts year,for thepurchased providerfuel shalland usepurchased reasonablepower effortspursuant to sellNRS any704.187 portfolioin energythe creditssame whichcalendar areyear in excesswhich ofthe 25money percentis ofreceived, theless amountany ofverified portfolioadministrative energycosts creditsincurred necessaryby the provider to complymake withthe itssale, including any costs incurred to qualify the portfolio standardenergy credits for thepotential subsequentsale calendarregardless year.of whether such sales are made.

 Any money received by a provider from the sale of portfolio energy credits pursuant to paragraphs (b) and (c) must be credited pursuant to NRS 704.187 in the same calendar year in which thepower money is received, less any verified administrative costs incurred by the portfolio energy credits for potential sale regardless of whethery such sales are made.

(a) Shall] shall require the provider to carry forward to subsequent calendar years the amount of the deficiency in kilowatt- hours of electricity that the provider does not generate, acquire or save from portfolio energy systems or efficiency measures during a calendar year in violation of its portfolio standard .

- *SB358_R2* – 24 – (a) During any calendar year after 2018 but before 2030, and did not comply with its portfolio standard for the 2 immediately preceding calendar years;

or (b) During calendar year 2030 or any subsequent calendar year,  the Commission may impose an administrative fine against the provider or take other administrative action against the provider, or do both.[4.] 5.

[4.] 5.

- 80th Session (2019) – 25 – [5.] 6.

If a provider sells any portfolio energy credits pursuant to paragraph (b) or (c) of subsection 2 in any calendar year in which the Commission determines that the provider did not comply with its portfolio standard, the Commission shall not make any adjustment to the provider’s expenses or revenues and shall not impose on the provider any administrative fine authorized by this section for that calendar year if:

(a) In the calendar year immediately preceding the calendar year in which the portfolio energy credits were sold, the amount of year portfolio energy credits held by the provider and attributable to electricity generated, acquired or saved from portfolio energy systems or efficiency measures by the provider exceeded the amount of portfolio energy credits necessary to comply with the provider’s portfolio standard by more than 10 percent;

In the aggregate, the administrative fines imposed against a provider for all violations of its portfolio standard for a single calendar year must not exceed the amount which is necessary - *SB358_R2* – 25 – and reasonable to ensure that the provider complies with itsitsessary portfolio standard, as determined by the Commission.

- 80th Session (2019) – 26 – Sec.

Electric generating plants and their associated facilities, except electric generating plants and their associated facilities which use or will use renewable energy, as defined in NRS [704.7811,] 704.7715, as their primary source of energy to generate electricity and which have or will have a nameplate capacity of not more than 70 megawatts, including, without limitation, a net metering system, as defined in NRS 704.771.

As used in this subsection, “associated facilities” includes, without limitation, any facilities for the storage, transmission or treatment of water, including, without limitation,torage,limitation, facilities to supply water or for the treatment or disposal of was2.watElectricwastewater, transmissionwhich linessupport andor transmissionservice substationsan that:electric generating plant.

2.

Electric transmission lines and transmission substations that:

Except as otherwise provided in subsection 3, the Commission may not grant a permit for the construction, operation and maintenance of a utility facility, either as proposed or asason modified by the Commission, to a person unless it finds and determines:

- *SB358_R2* – 26 – (a) The nature of the probable effect on the environment;

(e)- That80th theSession location(2019) of– the27 facility– as proposed conforms to applicable state and local laws and regulations issued thereunder and the applicant has obtained, or is in the process of obtaining, all other permits, licenses, registrations and approvals required by federal, state and local statutes, regulations and ordinances;

part2. of the proposed facility should be modified, it may condition its permit upon such a modification.

If the applicantCommission hasdetermines notthat obtainedthe bylocation federal,of stateall andor locala statutes,part regulations and ordinances as of the dateproposed onfacility whichshould thebe Commissionmodified, decidesit tomay issue a permit, the Commission shall condition its permit upon thesuch applicanta obtainingmodification. those permits and approvals.

If the applicant has not obtained all the other permits, licenses, registrations and approvals required the date on which the Commission decides to issue a permit, thes as of Commission shall condition its permit upon the applicant obtaining those permits and approvals.

Notwithstanding the provisions of any other law or any ruling or order issued by or portfolio standard established by the Public Utilities Commission of Nevada to the contrary, for any portfolio standard established by the Commission pursuant to the provisions of subsection 1 of NRS 704.78213 before the effective date of this act, the Commission shall, for calendar year 2020 and - *SB358_R2* – 27 – for each calendar year thereafter, revise the portfolio standard to require the provider of new electric resources as defined in NRS 704B.130 to generate, acquire or save electricity from portfolio energy systems or energy efficiency measures in the amounts described in the portfolio standard set forth in NRS 704.7821, as amended by section 22 of this act.

2.- 80th Session (2019) – 28 – December 31, 2025.

Section 3 of this act expires by limitation on December~~~~~ 31,19 2025.- 80th Session (2019)

H - *SB358_R2*