SB 448 — Revises provisions governing public utilities. (BDR 58-46)

Section 47 of this bill requires the Commission to - 81st Session (2021) – 4 – submit a report concerning the Program on or before December 31, 2022, for transmittal to the 82nd Session of the Legislature.

Existing law requires the Commission to establish goals for energy savings for each electric utility for each calendar year and also requires each electric utility to implement an energy efficiency plan which is cost effective and designed to meetlitymeet torequires that at least 5 percent of the goalsexpenditures forrelated to energy savingsefficiency establishedprograms bymust be directed toward low-income customers of the Commission.electric utility.

Existing(NRS law704.741, further704.7836) requiresSections 39, 41 and 44 of this bill require that at least 510 percent of the expenditures related to energy efficiency programs must be directedspent towardon energy efficiency measures for customers in low-income households and residential customers ofand thepublic electricschools utility.in historically underserved communities.

(NRSAdditionally, 704.741,section 704.7836) Sections 39, 41 and 44 ofprovides thisthat billprograms require that atcan leastoffer 10variable percentincentive ofthis thebill expendituresrequires relatedan toelectric energyutility efficiencyto programsamend mustits be spent on energy efficiency measuresplan forto customersconform inwith low-incomethe householdsamendatory andprovisions residentialof Additionally,this sectionbill. 44 provides that programs that can offer variable incentive levels must offer higher incentive levels for low-income households.

Section 54 of this bill requires an electric utility to amend its energy efficiency plan to conform with the amendatory provisions of this bill.

Existing law creates the New Energy Industry Task Force which is charged with advising the Director of the Office of Energy on measures to promote the development701.510) Section 55 of renewablethis energybill andabolishes energythe efficiencyTask projects.Force.ects.

(NRS 701.500, 701.510)EXPLANATION Section– 55Matter ofin thisbolded billitalics abolishesis thenew; Task Force.

matter between brackets [omitted material] is material to be omitted.

Meeting these greenhouse gas emission goals will require substantial further reductions in Nevada’s transportation sector - 81st Session (2021) – 5 – emissions below the current projected emission levels for that sector for 2025 and 2030.

- *SB448_R1* – 5 – 5.

Accelerating the use of electric vehicles will help preserve Nevada’s climate and help protect Nevadans from unhealthy air pol6.tioAccelerating the use of electric vehicles will reduce pollution in low-income neighborhoods and communities of color that traditionally have been most affected by transportation pollution.

6.

Accelerating the use of electric vehicles will reduce pollution in low-income neighborhoods and communities of color that traditionally have been most affected by transportation pollution.

Widespread adoption of electric vehicles should improve an electric utility’s electrical system efficiency and operational flexibility, including, without limitation, the ability of the electric utility to integrate variable renewable energy generation resources andandSec. to make use of off-peak generation resources.

2.e uChapter 701A of NRS is hereby amended by adding thereto the provisions set forth as sections 3, 4 and 5 of this act.

2.

Chapter 701A of NRS is hereby amended by adding thereto the provisions set forth as sections 3, 4 and 5 of this act.

Sec.

“Energy storage technology” means technology that stores energy as potential, kinetic, chemical or thermal energy that can be released asat electrica power,later time, including, without limitation, batteries, flywheels, electrochemical capacitors, compressed-air storage and thermal storage devices.

“Facility for the storage of energy from renewable generation” means a facility that is constructed or installed for the sole purpose of storing electric energy received from a facility for the generation of electricity from renewable energy for release as electric power at a later time, including, without limitation, a facility that is designed to use energy storage technology.

- 81st Session (2021) – 6 – Sec.

“Hybrid renewable generation and energy storage facility” means a facility that includes both a wholesale facility for - *SB448_R1* – 6 – the generation of electricity from renewable energy and a facility for the storage of energy from renewable generation.

701A.300 NRSAs used in NRS 701A.300 to 701A.390, inclusive, and sections 3, 4 and 5 of this act, unless the context otherwise requires, the words and terms defined in NRS 701A.305 to 701A.345, inclusive, and sections 3, 4 and 5 of this act have the meanings ascribed to them in those sections.

6.

NRS 701A.300 is hereby amended to read as follows:

701A.300 As used in NRS 701A.300 to 701A.390, inclusive, and sections 3, 4 and 5 of this act, unless the context otherwise requires, the words and terms defined in NRS 701A.305 to 701A.345, inclusive, and sections 3, 4 and 5 of this act have the meanings ascribed to them in those sections.

Sec.

3.application for a partial abatement, the Director shall forward a copy of the application to:

As soon as practicable after the Director receives an application for a partial abatement, the Director shall forward a copy of the application to:

5.- 81st Session (2021) – 7 – The hearing must not be held earlier than 30 days after all persons listed in subsection 3 have received a copy of the application.

The Director shall hold a public hearing on the application.

The hearing must not be held earlier than 30 days after all persons listed in subsection 3 have received a copy of the application.

The Director, in consultation with the Office of Economic Development, shall approve an application for a partial - *SB448_R1* – 7 – abatement pursuant to NRS 701A.300 to 701A.390, inclusive, and sections 3, 4 and 5 of this act if the Director, in consultation with the Office of Economic Development, makes the following determinations:

and (2)specified Bindperiod.he the successors in interest in the facility for the specified(b) period.The facility is registered pursuant to the laws of this State or the applicant commits to obtain a valid business license and all other permits required by the county, city or town in which the facility operates.

(b) The facility is registered pursuant to the laws of this State or the applicant commits to obtain a valid business license and all other permits required by the county, city or town in which the facility operates.

(1) There will be 75 or more full-time employees working on the construction of the facility during the second quarter of construction,cause, including,at unlessleast waived50 bypercent thewho Directorare forresidents of Nevada;for good cause,(2) Establishing the facility will require the facility to make a capital investment of at least 50$10,000,000 percentin whothis areState residentsin capital assets that will be retained at the location of Nevada;the facility until at least the date which is 5 years after the date on which the abatement becomes effective;

(2)(3) EstablishingThe theaverage facilityhourly wage that will requirebe paid by the facility to makeits aemployees capitalin investmentthis ofState is at least $10,000,000110 inpercent thisof Statethe inaverage capitalstatewide assetshourly thatwage, willexcluding bemanagement retainedand atadministrative the- location81st ofSession the(2021) facility– until8 at– leastof the dateDepartment whichof isEmployment, 5Training yearsand afterRehabilitation the date on whichJuly the1 abatementof becomeseach effective;fiscal year;

(3)and The(4) Except as otherwise provided in subsection 6, the average hourly wage thatof willthe beemployees paidworking byon the facilityconstruction toof itsthe employeesfacility inwill thisbe State is at least 110175 percent of the average statewide hourly wage, excluding management and administrative employees, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year;year and:

and (4) Except as otherwise provided in subsection 6, the average hourly wage of the employees working on the construction of the facility will be at least 175 percent of the average statewide hourly wage, excluding management and administrative employees, as established by the Employment Security Division of the Department - *SB448_R1* – 8 – of Employment, Training and Rehabilitation on July 1 of each fiscal year and:

and (II) The cost of the benefits provided to the employees working on the construction of the facility will meet the minimum requirements for benefits established by the Director by regulation pursuantpur(e) toIf NRSthe 701A.390.facility will be located in a county whose population is less than 100,000, in an area of a county whose population is 100,000 or more that is located within the geographic boundaries of an area that is designated as rural by the United States Department of Agriculture and at least 20 miles outside of the geographic boundaries of an area designated as urban by the United States Department of Agriculture, or in a city whose population is less than 60,000, the facility meets the following requirements:

(e) If the facility will be located in a county whose population is less than 100,000, in an area of a county whose population is 100,000 or more that is located within the geographic boundaries of an area that is designated as rural by the United States Department of Agriculture and at least 20 miles outside of the geographic boundaries of an area designated as urban by the United States Department of Agriculture, or in a city whose population is less than 60,000, the facility meets the following requirements:

(2) Establishing the facility will require the facility to make a capital investment of at least $3,000,000 in this State in capital assets that will be retained at the location of the facility until at least becomes effective;5 years after the date on which the abatement (3) The average hourly wage that will be paid by the facility to its employees in this State is 5at yearsleast after110 percent of the dateaverage onstatewide whichhourly wage, excluding management and administrative employees, as established by the abatementEmployment becomesSecurity effective;Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year;

(3)and The(4) averageExcept hourlyas wageotherwise thatprovided willin besubsection paid6, by the facilityaverage tohourly itswage of the employees inworking thison Statethe isconstruction atof leastthe 110- percent81st ofSession the(2021) average– statewide9 hourly– wage, excluding management and administrative employees, asaside hourly established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year;year and:

and (4) Except as otherwise provided in subsection 6, the average hourly wage of the employees working on the construction of the facility will be at least 175 percent of the average statewide hourly wage, excluding management and administrative employees, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year and:

and - *SB448_R1* – 9 – (II) The cost of the benefits provided to the employees working on the construction of the facility will meet the minimum requirements for benefits established by the Director by regulation pursuant to NRS 701A.390.

(g) The facility is consistent with the State Plan for Economic Development developed by the Executive Director of the Office ofofic Economic Development pursuant to subsection 2 of NRS 231.053.

(a) Shall, in considering an application pursuant to this subsection, make a recommendation to the Director regarding the application;

or (2)- The81st projectedSession financial(2021) benefits– that10 will– result to the county from the employment by the facility of the residents of this State and from capital investments by the facility in the county will not exceed the projected loss of tax revenue that will result from the abatement;

and - *SB448_R1* – 10 – (d) May, without regard to whether the board has provided notice to the Director of its intent to consider the application, make a recommendation to the Director regarding the application.

 If the board of county commissioners does not approve or deny the application within 30 days after the board receives from the Director a copy of the application, the application shall be deemed approved.app3.vedNotwithstanding the provisions of subsection 1, the Director, in consultation with the Office of Economic Development, may, if the Director, in consultation with the Office, determines that such action is necessary:

3.

Notwithstanding the provisions of subsection 1, the Director, in consultation with the Office of Economic Development, may, if the Director, in consultation with the Office, determines that such action is necessary:

The Director shall submit to the Office of Economic Development an annual report, at such a time and containing such information as the Office may require, regarding the partial abatementsaba6. granted pursuant to this section.

6.

(a) Means the[the] basic: hourly rate of pay.

(b)(1) DoesThe notbasic includehourly therate amount of anypay health[.] insurance; plan, pension or other bona fide fringe benefits which are a benefit to the employee.

and - 81st Session (2021) – 11 – (2) The amount of any hourly contribution made to a third- party administrator pursuant to a pension plan or vacation plan which is for the benefit of the employee.

(b) [Does] Except as provided in paragraph (a), does not bona fide fringe benefits which are a benefit to the employee.her Sec.

8.5.

NRS 701A.450 is hereby amended to read as follows:

701A.450 1.

The Renewable Energy Account is hereby created in the State General Fund.

2.

The Director of the Office of Energy appointed pursuant to NRS 701.150 shall administer the Account.

3.

The interest and income earned on the money in the Account must be credited to the Account.

4.

[Not less than 75 percent of the] The money in the Account must be used [to offset the cost of electricity to or the use of electricity by retail customers of a public utility that is subject to the portfolio standard established by the Public Utilities Commission of Nevada pursuant to NRS 704.7821.] for such purposes as the Director of the Office of Energy may establish by regulation.

5.

Any money remaining in the Account at the end of a fiscal year does not revert to the State General Fund, and the balance in the Account must be carried forward to the next fiscal year.

6.

The Director [of the Office of Energy] may by regulation establish [:

(a) Other uses of the money in the Account;

and (b) A] a procedure by which any officer or employee of the money from the Account may enter into an agreement with theution of Director pursuant to which repayment of the loan or other distribution of money may be made through payroll deductions.

Subject to the limitation prescribed by subsection 3, the Commission may authorize the payment of an incentive pursuant to the Solar Energy Systems Incentive Program created by NRS 701B.240, the Wind Energy Systems Demonstration Program - *SB448_R1*81st Session (2021) – 1112 – created by NRS 701B.580 [, the Electric Vehicle Infrastructure Demonstration Program created by NRS 701B.670] and the Waterpower Energy Systems Demonstration Program created by NRS 701B.820 if the payment of the incentive would not cause the total amount of incentives paid by all utilities in this State for the installation of [electric vehicle infrastructure,] solar energy systems, solar distributed generation systems, energy storage systems, wind energy systems and waterpower energy systems to exceed $295,270,000 for the period beginning on July 1, 2010, and ending on December 31, 2025.

The Commission shall review and approve any plan submitted pursuant to this subsection in accordance with the requirements of NRS 701B.230, 701B.610 and 701B.850, as applicable.

The Legislature hereby finds and declares that it is the policy of this State to expand and accelerate the deployment of- electric81st Session (2021) – 13 – State.ctric vehicles and supporting infrastructure throughout this State.2.

- *SB448_R1* – 12 – 2.

(c) The imposition of a rate by the utility to require the purchase of electric service for the charging of an electric vehicle at a rate which is based on the time of day, day of the week or time of yearyearate during which the electricity is used, or which otherwise varies based upon the time during which the electricity is used, if a customer of the utility participates in the Electric Vehicle Infrastructure Demonstration Program;

and (e) The payment of an incentive to a customer of the utility that is a public school, as defined in NRS 385.007, that installs electric vehicle infrastructure on the property of the public school or purchases electric vehicles dedicated to the transportation of students, not to exceed 75 percent of the cost to install such infrastructure or purchase such vehicles.] 4.

and (b) Approve each annual plan with such modifications and upon such terms and conditions as the Commission finds necessary or appropriate- to81st facilitateSession (2021) – 14 – Demonstration Program.ate the Electric Vehicle Infrastructure Demonstration5.] Program.Each utility:

5.](a) EachShall utility:carry out and administer the Electric Vehicle Infrastructure Demonstration Program within its service area [in accordance with its annual plan] as approved by the Commission ;

- *SB448_R1* – 13 – (a) Shall carry out and administer the Electric Vehicle Infrastructure Demonstration Program within its service area [in accordance with its annual plan] as approved by the Commission ;

(b) “Electric vehicle infrastructure” includes, without limitation, electric vehicles and the charging stations for the recharging of electriceleSec. vehicles.

Sec.

or (2) In which, in the immediately preceding census, at least 20 percent of households were not proficient in the English language;

or (2) That participates in universal meal service in high poverty areas pursuant to Section 104 of the Healthy, Hunger- Free Kids Act of 2010, Public Law 111-296;

- 81st Session (2021) – 15 – (b) “Block group” means a combination of blocks whose numbers begin with the same digit.

“Low-income household” means a household, which may include one or more persons, with a median household income of not more than 80 percent of the area medianmedianhousehold - *SB448_R1* – 14 – household income, based on the guidelines published by the United States Department of Housing and Urban Development.

(d) Rate designs, programs or management systems that encourage the charging of vehicles in a manner that supports the operation and optimal integration of transportation electrification into the electric grid, including, without limitation, proposed schedules necessary to implement the rate designs or programs;

During the 9 months immediately before an electric utility files its first plan pursuant to subsection 1 and during the 12 months immediately before an electric utility files any subsequent plan pursuant to subsection 1, the electric utility shall conduct at least one stakeholder engagement meeting each calendar quarter - 81st Session (2021) – 16 – to discuss the development of the plan and to solicit comments and gather ideas for improvements or additions to the plan which support transportation electrification.

Each stakeholder engagement meeting must be open to participation by the Regulatory Operations Staff of the Commission, personnel from the Bureau of Consumer Protection in the Office of the Attorney General and any other interested person.

Each plan filed pursuant to subsection 1 must include a summary of the stakeholder - *SB448_R1* – 15 – engagement meetings conducted in the 9- or 12-month period, as applicable, immediately preceding the filing of the plan, which must include, without limitation, summaries of the comments and ideas provided by the participants.

The Commission shall adopt regulations necessary to carry out the provisions of this section,section. including, without limitation, regulations prescribing a process for the electric utility to recover all costs that it prudently and reasonably incurs to develop and implement a plan submitted pursuant to this section and approved by the Commission pursuant to NRS 704.751.

To the extent that a plan submitted pursuant to subsection includes programs in which customers may participate, eligibility for participation by customers in such programs must be offered by the electric utility on a nondiscriminatory basis to both NRS 704B.080, who purchase or plan to purchase electricity from a provider of new electric resources, as defined in NRS 704B.130.

7.

(I)- Designated81st asSession a(2021) qualified– census17 tract– by the Secretary of Housing and Urban Development pursuant to 2626e U.S.C.

- *SB448_R1* – 16 – (f) “Transportation electrification” means the use of electricity from external sources to power, wholly or in part, passenger vehicles, trucks, buses, trains, boats or other equipment that transportstraSec. goods or people.

Sec.

“High-voltage transmission infrastructure” means bulk transmission lines capable of transmitting electricity at a voltage of 345 kilovolts or more, and associated electrical substationstransmission andlines.station substation expansions to accommodate the transmissionSec. lines.

Sec.

On or before September 1, 2021, an electric utility shall file an amendment to its most recent resource plan filed pursuant to NRS 704.741 to incorporate into the resource plan a transmission infrastructure for a clean energy economy plan which sets forth a plan for the construction of high-voltage - 81st Session (2021) – 18 – transmission infrastructure that will be placed into service not later than December 31, 2028, to:

(a) Assure a reliable and resilient transmission network in this State to serve the existing and currently projected transmission serviceser(b) obligationsAssist ofthe utility in meeting the electricportfolio utility;standard established by NRS 704.7821 and the goals for the reduction of greenhouse gas emissions set forth in NRS 445B.380 and 704.7820;

(b) Assist the utility in meeting the portfolio standard established by NRS 704.7821 and the goals for the reduction of greenhouse gas emissions set forth in NRS 445B.380 and 704.7820;

- *SB448_R1* – 17 – (e) Use federally granted rights-of-way within designated renewable energy transmission corridors before the expiration of such rights-of-way;

 Two or more utilities that are affiliated through common ownership and that have an interconnected system for thetheon transmission of electricity shall submit a joint plan.

(b) A project for the implementation of high-voltage transmission infrastructure located in southern Nevada and accessing a federally designated renewable energy transmission corridor- that81st willSession accommodate(2021) future– renewable19 energy– development and increased demand for electricity.electricity.nergy 3.

3.

The Commission retains full authority to decide any request by an electric utility for the recovery of such costs before a high-voltage transmission infrastructure project is placed into service, and to determine if of such costs.inancial incentive will be provided on the recovery 4.

- *SB448_R1* – 18 – (b) The resilience of the transmission network of the utility, including, without limitation, the ability of the transmission network to withstand natural or manmade events that could otherwise disrupt the provision of electric service in this State;

(e) The projected carbon dioxide emissions of the utility resulting from the generation of electricity, including, without limitation, carbon dioxide emissions from the generation of electricity that is purchased by the electric utility;

(g) The ability of the utility to reliably integrate into its supply portfolio larger amounts of electricity from variable renewable energy- resources,81st including,Session without(2021) limitation,– solar20 and– wind energy resources;

including, without limitation, solar and wind (h) The ability of the utility to reduce its energy supply costs by selling to other states electricity generated in this State from renewable energy during periods when the utility’s supply of electricity exceeds the demand for electricity by the customers of the utility;

(j) The utility’s provision of open access to interstate and intrastate transmission services, in accordance with the utility’s open access transmission tariff, to other persons in this State using the utility’s transmission network, including, without limitation, eligible customers, as defined in NRS 704B.080, and providers of new electric resources, as defined in NRS 704B.130, who are or intend to become customers of the utility’s interstate transmission services;

(l) The development of regional transmission interconnections that may be required for this State to cost-effectively achieve the - *SB448_R1* – 19 – goals for the reduction of greenhouse gas emissions set forth in NRS 445B.380 and 704.7820 or for the electric utility to participate fully in any future organized competitive regional wholesale electricity market on the Western Interconnection;

5.the synchronously operated electric transmission grid located in the western part of North America, including parts of Montana, Nebraska, New Mexico, South Dakota, Texas, Wyoming and Mexico and all of Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah, Washington and the Canadian Provinces of British Columbia and Alberta.

As used in this section, “Western Interconnection” means the synchronously operated electric transmission grid located in the western part of North America, including parts of Montana, Nebraska, New Mexico, South Dakota, Texas, Wyoming and Mexico and all of Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah, Washington and the Canadian Provinces of British Columbia and Alberta.

In implementing a transmission infrastructure for a clean energy economy plan, an electric utility shall mitigate costs to the extent possible by utilizing available federal tax - 81st Session (2021) – 21 – incentives and federal funding, including, without limitation, direct and indirect grants and loan guarantees.

If, in any general rate proceeding filed by an electric utility pursuant to NRS 704.110 or 704.7621, the electric utility includes a request for recovery of any amount related to the implementation of a transmission infrastructure for a clean energy economy plan and the recovery of such an amount would result in an increase in the electric utility’s total revenue requirement of more than 10 percent, the utility must propose a method or mechanism by which such an increase may be mitigated.

Nothing in this subsection shall be construed as requiring the Commission to provide a financial incentive to an electric utility.

If the Commission deems inadequate any portion of a transmission infrastructure for a clean energy economy plan or any amendment to the plan, the Commission, as provided in NRS 704.751, may recommend to the electric utility a modification of that portion of the plan or amendment, and the electric utility may:may1.

1.

- *SB448_R1* – 20 – Sec.

- 81st Session (2021) – 22 – 3.

Achieves the objectives of an open and competitive wholesale electric generation marketplace, elimination of barriers to market entry and preclusion of control of bottleneck electricelectricrs transmission facilities in the provision of retail electric service;

“Task Force” means the Regional Transmission CoordinationCooSec. Task Force created by section 31 of this act.

Sec.

- *SB448_R1* – 21 – Sec.

(a)- The81st transmissionSession provider(2021) files– an23 application– with the Commission on or before January 1, 2027, requesting the waiver or delay;

The ChairCha3. is a voting member of the Task Force.

3.isIn addition to the Chair, the Task Force consists of:

In addition to the Chair, the Task Force consists of:

(7) A representative of the data center businesses in this State;(8) A representative of an organization that represents the mining industry in this State;

- *SB448_R1* – 22 – (8) A representative of an organization that represents the mining industry in this State;

- 81st Session (2021) – 24 – (12) A representative of the OfficeNevada ofIndian Energy;Commission;

(13) A representative of the Office of EconomicEnergy; Development;

(14) TwoA membersrepresentative of the Senate,Office nominated by the Majority Leader of theEconomic Senate,Development; at least one of whom must be a member of the minority political party;

(15)Majority TwoLeader members of the Assembly,Senate, nominated by the Speaker of the Assembly, at least one of whom must be a member of the minority political party;

and (16) NotTwo moremembers thanof threethe personsAssembly, whonominated representby the generalSpeaker public.of the Assembly, at least one of whom must be a member of the minority political party;

and (17) Not more than three persons who represent the general public.

The Chair shall identify and approve the scope of work and issues to be addressed by 4.e A majority of the voting members of the Task Force constitutes a quorum, and anya workingquorum group.may exercise all the powers conferred on the Task Force.

4.

A majority of the voting members of the Task Force constitutes a quorum, and a quorum may exercise all the powers conferred on the Task Force.

- *SB448_R1* – 23 – (a) The potential costs and benefits to transmission providers and their customers in this State of forming or joining a regional transmission organization which provides access to an organized competitive regional wholesale electricity market;

(b)- Policies81st thatSession will(2021) accommodate– entrance25 by– transmission providers in this State into a regional transmission organization by January 1, 2030;

The Task Force shall, not later than November 30, 2022, and every 2 years thereafter, submit to the Governor and the Director of the Legislative Counsel Bureau for transmittal to the next regular session of the Legislature a report on its activities, including any recommended legislation needed to enable entrance by transmission providers in this State into a regionalregionalentrance transmission organization.

Except as otherwise provided in this chapter, when the Commission reviews an application to make changes in any schedule, there is no presumption that any recorded expenses, investments or other costs included in the application wereweres, prudently incurred, unless the Commission has previously determined that such expenses, investments or other costs were prudently incurred.

- *SB448_R1* – 24 – Sec.

- 81st Session (2021) – 26 – 1.

2.compensation, water or services for the disposal of sewage, or both, to persons within this State if:

Persons engaged in the business of furnishing, for compensation, water or services for the disposal of sewage, or both, to persons within this State if:

7.and treatment facilities if those facilities are for the storage,n transmission or treatment of water from mining operations.

Persons who provide water from water storage, transmission and treatment facilities if those facilities are for the storage, transmission or treatment of water from mining operations.

- *SB448_R1*81st Session (2021) – 2527 – (a) The electricity is delivered only to persons, units or spaces located on the premises on which the net metering system or systems are located;

(b) The residential or commercial units or spaces do not have individual meters measuring electricity use by an individual unit or space;

andandters measuring electricity use by an individual unit (c) Persons occupying the individual units or spaces are not charged for electricity based upon volumetric usage at the person’s individual unit or space.

Any plant or equipment that is used by a data center to produce, deliver or furnish electricity at agreed-upon prices for or to persons on the premises of the data center for the sole purpose ofofor those persons storing, processing or distributing data, but only with regard to those operations which consist of providing electric service.

(a)- A81st publicSession utility(2021) shall– 28 – unless the public utility:all not make changes in any schedule, unless(1) Files with the publicCommission utility:an application to make the proposed changes and the Commission approves the proposed changes pursuant to NRS 704.110;

- *SB448_R1* – 26 – (1) Files with the Commission an application to make the proposed changes and the Commission approves the proposed changes pursuant to NRS 704.110;

(b) A public utility shall adjust its rates on a quarterly basis between annual rate adjustment applications pursuant to subsection 8 of NRS 704.110 based on changes in the public utility’s recorded costs of natural gas purchased for resale.

(d) A public utility shall post copies of all proposed schedules and all new or amended schedules in the same offices and in substantially the same form, manner and places as required by NRS 704.070 for the posting of copies of schedules that are currently in force.

(1) The public utility may file the proposed change with the Commissionandmission using a letter of advice in lieu of filing an application;

and (2) The Commission shall determine whether it should dispense with a hearing regarding the proposed change.

 A letter of advice filed pursuant to this paragraph must include a certification by the attorney for the public utility or an affidavit by an authorized representative of the public utility that to the best of the signatory’s knowledge, information and belief, formed after a reasonable inquiry, the proposed change in schedule does not - 81st Session (2021) – 29 – revenue of the public utility in an amount that exceeds $15,000.rating (g) If the applicant is a small-scale provider of last resort and the proposed change in any rateschedule orwill result in an increase in the annual gross operating revenue in an amount that does not exceed $50,000 or 10 percent of the publicapplicant’s utilityannual ingross anoperating amountrevenue, thatwhichever exceedsis $15,000.less:

(g) If the applicant is a small-scale provider of last resort and the proposed change in any schedule will result in an increase in annual gross operating revenue in an amount that does not exceed $50,000 - *SB448_R1* – 27 – or 10 percent of the applicant’s annual gross operating revenue, whichever is less:

(I) Includes with the letter of advice a certification by the attorney for the small-scale provider of last resort or an affidavit by an authorized representative of the small-scale provider of last resort that to the best of the signatory’s knowledge, information and belief, formed after a reasonable inquiry, the proposed change in schedule does not change any rate or result in an increase in the annual gross operating revenue of the small-scale provider of last resort in an amount tha(II) Demonstrates that exceedsthe $50,000proposed change in schedule is required by or 10directly percent,related whicheverto isa less;regulation or order of the Federal Communications Commission;

(II) Demonstrates that the proposed change in schedule is required by or directly related to a regulation or order of the Federal Communications Commission;

The Commission may hold a hearing to consider such a request.r(h) In making the determination pursuant to paragraph (f) or (g), the Commission shall first consider all timely written protests, any presentation that the Regulatory Operations Staff of the Commission may desire to present, the application of the public utility and any other matters deemed relevant by the Commission.

(h) In making the determination pursuant to paragraph (f) or (g), the Commission shall first consider all timely written protests, any presentation that the Regulatory Operations Staff of the Commission may desire to present, the application of the public utility and any other matters deemed relevant by the Commission.

The Commission shall, not later - 81st Session (2021) – 30 – than 90 days after receipt of such a request, issue an order approving or denying the request.

The Commission may approve the request if the applicant provides proof satisfactory to the Commission that the applicant is not earning more than the rate of return authorized by the Commission and that it is in the public interest for the Commission to grant the request for a waiver.

The Commission shall not approve a request for a waiver if the request is submitted - *SB448_R1* – 28 – later than 7 years after the issuance by the Commission of a final order on a general rate application filed by the applicant in accordance with subsection 3 of NRS 704.110.

If the Commission approves a request for a waiver submitted pursuant to this subsection, the applicant shall file the letter of advice pursuant to subparagraph (1) of paragraph (g) of subsection 1 not earlier than 120 days after the date on which the applicant submitted the request for a waiver pursuant to this subsection, unless the order issued by the Commission approving the request for a waiver specifies a different period for the filing of the letter of advice.

Two or more utilities that are affiliated through common ownership and that have an interconnected system for the transmission of electricity shall submitsub2. a joint plan.

2.

and (b)- Designate81st renewableSession energy(2021) zones– and31 revise– the designated renewable energy zones as the Commission deems necessary.necessary.signated 3.

3.

(b) A proposal for the expenditure of not less than [5] 10 percent of the total expenditures related to energy efficiency and - *SB448_R1* – 29 – conservation programs on energy efficiency [and conservation programs directed to low-income] measures for customers of the electric utility [.] in low-income households and residential customers and public schools in historically underserved communities, through both targeted programs and programs directed at residential customers and public schools in general.

(c) A comparison of a diverse set of scenarios of the best combination of sources of supply to meet the demands or the best methods to reduce the demands, which must include at least one scenario of low carbon [intensity] dioxide emissions that [includes] :

(d) An analysis of the effects of the requirements of NRS 704.766 to 704.776, inclusive, on the reliability of the distribution system of the utility or utilities and the costs to the utility or utilities to provide electric service to all customers.

[The Commission shall require the utility or utilities to include in the plan a plan for construction or expansion of transmission- facilities81st toSession serve(2021) renewable– energy32 zones– and to facilitate the utility or utilities in meeting the portfolio standard established by NRS 704.7821.

This evaluation must be based on reductions or increases in local generation capacity needs, avoided or increased investments in distribution infrastructure, safety benefits, reliability benefits and any other savings the distributed resources provide to the electricity - *SB448_R1* – 30 – grid for this State or costs to customers of the electric utility or utilities.

(c) Propose cost-effective methods of effectively coordinating existing programs approved by the Commission, incentives and tariffs to maximize the locational benefits and minimize the incremental costs of distributed resources.

The Commission shall require the utility or utilities to include in the plan a proposal for annual limits on the total amount of energy and capacity that eligible customers may be authorized to purchase from providers of new electric resources through transactions approved by the Commission pursuant to an application submitted pursuant to NRS 704B.310 on or after May 16, 2019.

- 81st Session (2021) – 33 – (b) The number of eligible customers that are currently being served by or anticipated to be served by the utility or utilities;

(c) Information concerning the infrastructure of the utility or utilities that is available to accommodate market-based new electric resources;res(d) Proposals to ensure the stability of rates and the availability and reliability of electric service;

(d) Proposals to ensure the stability of rates and the availability and reliability of electric service;

- *SB448_R1* – 31 – [7.] 6.

[(d)]NRS (c)704B.080.“Eligible “Eligible customer” has the meaning ascribed to it in [(e)] (d) “Energy” has the meaning ascribed to it in NRS 704B.080.704B.090.

[(e)] (d) “Energy” has the meaning ascribed to it in NRS 704B.090.

- 81st Session (2021) – 34 – [(i)] (j) “Sensitivity analysis” means a set of methods or procedures which results in a determination or estimation of the sensitivity of a result to a change in given data or a given assumption.

Sec.704.746 1.RS 70After a utility has filed its plan pursuant to NRS 704.741, the Commission shall convene a public hearing on the adequacy of the plan.

40.

NRS 704.746 is hereby amended to read as follows:

704.746 1.

After a utility has filed its plan pursuant to NRS 704.741, the Commission shall convene a public hearing on the adequacy of the plan.

The Commission must grant a petition to intervene as a party in the hearing if the person or entity has relevant material evidence to - *SB448_R1* – 32 – provide concerning the adequacy of the plan.

(b) The plan identifies and takes into account any present and projected reductions in the demand for energy that may result from measures to improve energy efficiency in the industrial, commercial, residential and energy producing sectors of the area being served.

(6)- 81st Session (2021) – 35 – (7) Other generationtransmission facilities;facilities.nd 5.

and (7) Other transmission facilities.

5.

 In considering the measures and sources of supply set forth in paragraph (c) of subsection 4 and determining the preference given - *SB448_R1* – 33 – to such measures and sources of supply, the Commission shall consider the cost of those measures and sources of supply to the customerscus6. of the electric utility or utilities.

6.The Commission shall:tility or utilities.

The Commission shall:

The Commission shall, after a hearing, review and accept or modify an emissions reduction and capacity replacement plan which includeswhether eachto elementaccept requiredor bymodify NRSan 704.7316.emissions reduction and capacity replacement plan, the Commission shall consider:

In considering whether to accept or modify an emissions reduction and capacity replacement plan, the Commission shall consider:

and - 81st Session (2021) – 36 – (d) Whether the plan represents the best value to the customers of the electric utility or utilities.

In considering whether to accept or modify a proposal for annual limits on the total amount of energy and capacity that eligible customers may be authorized to purchase from providers of new electric resources through transactions approved by the Commission pursuant to an application submitted pursuant to NRS 704B.310 after May 16, 2019, which is included in the plan pursuant to subsection [6] 5 of NRS 704.741, the Commission shall consider whether the proposed annual limits:

and - *SB448_R1* – 34 – (c) Encourage the development and use of renewable energy resources located in this State and, in particular, renewable energy resources that are coupled with energy storage.

and (8)- Provide81st informationSession and(2021) education– on37 the– benefits of transportation electrification to customers.

on the benefits of (b) Whether the proposed investments, incentives, rate designs, systems and programs provide electric services and pricing that customers value.

andand(b) - *SB448_R1* – 35 – (b) Within 210 days for all portions of the plan not described in paragraph (a).

or (b) Within 180 days after the filing of the amendment for all portions of the amendment which contain an element of the emissions reduction and capacity replacement plan.

of the  If the Commission issues an order modifying the amendment, the utility or utilities may consent to or reject some or all of the modifications by filing with the Commission a notice to that effect.

- 81st Session (2021) – 38 – 3.

Any order issued by the Commission accepting or modifying a plan required pursuant to NRS 704.741 or an amendment to such a plan must include the justification of the Commission for the preferences given pursuant to subsection 5 of NRS 704.746 to the measuressubsection and4 sources of supplyNRS 704.746.ly set forth in paragraph (c) of subsection4. 4 of NRS 704.746.

4.

Any order issued by the Commission accepting or modifying an energy efficiency plan or an amendment to such a plan must, if the energy efficiency plan remains cost effective, require that not less than [5] 10 percent of the total expenditures of the utility or utilities on approved energy - *SB448_R1* – 36 – efficiency and conservation programs in the energy efficiency plan must be specifically directed to energy efficiency [and conservation programs for low-income] measures for customers of the utility or utilities [.] in low-income households and residential customers and public schools in historically underserved communities, through both targeted programs and programs directed at residential customers and public schools in general.

6.

The Commission may accept [:

8.] Any order issued by the Commission accepting or modifying an element of an emissions reduction and capacity replacement plan must include provisions authorizing the electric utility or utilities to construct or acquire and own electric generating plants- necessary81st toSession meet(2021) the– capacity39 amounts– approved in, and carry out the provisions of, the plan.

704.7591assets 1.pursuant to a merger, acquisition or transaction that isn authorized pursuant to NRS 704.329 or pursuant to a transfer of its certificate of public convenience and necessity that is authorized pursuant to NRS 704.410, if:

An(a) The electric utility maydisposes disposeof substantially all of its generation assets pursuantand tosubstantially aall merger, acquisition or transaction that is authorized pursuant to NRS 704.329 or pursuant to a transfer of its certificateother ofassets publicto conveniencethe andother necessityperson thatin isthe authorizedmerger, pursuantacquisition, totransaction NRSor 704.410,transfer; if:

- *SB448_R1* – 37 – (a) The electric utility disposes of substantially all of its generation assets and substantially all of its other assets to the other person in the merger, acquisition, transaction or transfer;

Any person who assumes or has assumed ownership, possession, control, operation, administration or maintenance of a generation asset pursuant to a merger, acquisition, transaction or transferNRS described704.7561 into subsection704.7595, 1inclusive.s is subject to the provisions of NRSSec. 704.7561 to 704.7595, inclusive.

Sec.

- 81st Session (2021) – 40 – Sec.

The Commission shall establish by regulation for each electric utility goals for energy savings resulting from energy efficiency programs implemented by the electric utility each year,electric whichutility mustpursuant beto includedNRS in704.741.rce the resource plan filed by the electric2. utility pursuant to NRS 704.741.

2.

and - *SB448_R1* – 38 – (c) Is cost effective.

5.electric utility to meet the goals for energy savings established by the Commission pursuant to this section, the Commission shall approve an energy efficiency plan that is:

In approving an energy efficiency plan developed by an electric utility to meet the goals for energy savings established by the Commission pursuant to this section, the Commission shall approve an energy efficiency plan that is:

Unless the Commission determines that it is not cost effective, any energy efficiency plan approved by the Commission must provide that not less than [5] 10 percent of the total expenditures related to energy efficiency programs must be [directed- to]81st spentSession on(2021) energy– efficiency41 [programs]– measures for [low-income] customers of the electric utility [.] in low-income households and residential customers and public schools in historically underserved communities, through both targeted programs and programs directed at residential customers and public schools in general.

704.7881 The Commission, in consultation with the Office of EconomicEco1.micShall Development:adopt regulations:

1.

Shall adopt regulations:

- *SB448_R1* – 39 – (2) In the third [,] and fourth [, fifth and sixth] year of a contract entered into pursuant to NRS 704.7877, the reduction in the rates as a result of the discount must not exceed [20] 30 percent of the base tariff energy rate;

[and] (3) In the fifth, sixth, seventh and eighth year of a contract entered into pursuant to NRS 704.7877, the reduction in the rates as a result of the discount must not exceed [10] 20 percent of the base tariff energy rate;

andandt must not exceed [10] 20 percent of the base (4) In the ninth and tenth year of a contract entered into pursuant to NRS 704.7877, the reduction in the rates as a result of the discount must not exceed 10 percent of the base tariff energy rate;

(c) Prescribing the procedure by which an electric utility is authorized to recover through a deferred energy accounting adjustment- application81st theSession amount(2021) of– the42 discount– provided to a participant in the Program;

andandnt of the discount provided to a (d) Prescribing any additional information which must be submitted by an applicant for participation in the Program.

The remaining amount of electricity available for allocation pursuantpurSec. to the Program.

Sec.

and - *SB448_R1* – 40 – (c) The provider holds a valid license.

(a) Specific information demonstrating that the person filing the applicationapp(b) isInformation andemonstrating eligiblethat customer;the proposed provider will provide energy, capacity or ancillary services from a new electric resource;

(b)(c) InformationSpecific demonstratinginformation concerning the terms and conditions of the proposed transaction that is necessary for the Commission to evaluate the impact of the proposed providertransaction willon providecustomers and the public interest, including, without limitation, information concerning the duration of the proposed transaction, the point of receipt of the energy, capacity or ancillary services and the amount - 81st Session (2021) – 43 – provider;, capacity or ancillary services to be purchased from athe new(d) electricSpecific resource;information identifying transmission requirements associated with the proposed transaction and the extent to which the proposed transaction requires transmission import capacity;

(c) Specific information concerning the terms and conditions of the proposed transaction that is necessary for the Commission to evaluate the impact of the proposed transaction on customers and the public interest, including, without limitation, information concerning the duration of the proposed transaction, the point of receipt of the energy, capacity or ancillary services and the amount of energy, capacity or ancillary services to be purchased from the provider;

(d) Specific information identifying transmission requirements associated with the proposed transaction and the extent to which the proposed transaction requires transmission import capacity;

5.eligible customer unless the Commission finds that the proposed transaction:

The Commission shall not approve the application of the eligible customer unless the Commission finds that the proposed transaction:

- *SB448_R1* – 41 – (a) Whether the electric utility that has been providing electric service to the eligible customer will experience increased costs as a res(b) Whether any remaining customer of the electric utility will pay increased costs for electric service or forgo the benefit of a reduction of costs for electric service as a result of the proposed transaction;

(b) Whether any remaining customer of the electric utility will pay increased costs for electric service or forgo the benefit of a reduction of costs for electric service as a result of the proposed transaction;

(a)- The81st eligibleSession customer(2021) shall– not44 begin– purchasing energy, capacity or ancillary services from the provider pursuant to the proposed transaction sooner than 280 days after the date on which the application was filed, unless the Commission allows the eligible customer to begin purchasing energy, capacity or ancillary services from the provider at an earlier date;

(I) Payment by the eligible customer to the electric utility of the eligible customer’s load-share portion of any unrecovered balance in the deferred accounts of the electric utility;

andandred (II) Payment by the eligible customer, or the provider of new electric resources, as applicable, of the annual assessment and any other tax, fee or assessment required by NRS 704B.360;

and (4) Must ensure that the eligible customer pays its load-ratio share of the costs associated with the electric utility’s obligations that were incurred as deviations from least-cost resource planning pursuant to the laws of this State including, without limitation, costs incurred to satisfy the requirements of NRS 704.7821 and implement the provisions of NRS 701B.240, 701B.336, 701B.580, - *SB448_R1* – 42 – [701B.670,] 701B.820, 702.160, 704.773, 704.7827, 704.7836, 704.785, 704.7865, 704.7983 and 704.7985.704.7985.04.7827, 704.7836, 8.

8.

and (b) Would have a peak load of 10 megawatts or more in the service territory of an electric utility within 2 years of initially taking electric service, - is81st requiredSession to(2021) pay– only45 those– costs, fees, charges or rates which apply to current and ongoing legislatively mandated public policypolicych programs, as determined by the Commission.

Two or more utilities that are affiliated through common ownership and that have an interconnected system for the transmission of electricity shall submit a joint plan pursuant to this section.accelerate transportation electrification in an amount not to exceed $100,000,000.

The joint plan must include a plan for investments to accelerate transportation electrification in an amount not to exceed $100,000,000.

The Interstate CorridorCorrid(1) ChargingMust Depotinclude Program:the establishment of direct-current fast chargers and level 2 chargers, which may be owned by the electric utility or a third-party provider.

(1)(2) MustMay include the establishment of direct-currentelectric fastutility-owned chargersenergy andstorage levelsystems 2or chargers,renewable energy systems which mayminimize bethe ownedimpact byto the electricgrid utilityby orreducing athe third-partypeak provider.demand for electricity.

-(b) *SB448_R1*An –Urban 43Charging –Depot (2)Program Mayaimed includeat theproviding establishmentincreased ofaccess to public electric utility-ownedvehicle energycharging storageinfrastructure systemsin or- renewable81st energySession systems(2021) which– minimize46 the– impactmetropolitan toareas theof gridthis byState, reducingparticularly thefor peakcustomers demandwho forare electricity.unable to charge vehicles at their home or business.

(b)The An Urban Charging Depot Program aimedmust atalso providingbe increaseddesigned access to publicaddress electricthe vehicleneeds chargingof infrastructuretourists, indelivery metropolitanservices areasand ofbusinesses thisthat State,require particularlyaccess forto customersintended whoscope areand unablegeneral tolocation chargefor vehicleseach atproposed theirchargingorth homethe ordepot. business.

The Urban Charging Depot Program must also be designed to address the needs of tourists, delivery services and businesses that require access to public charging for fleet electrification.

The plan must set forth the intended scope and general location for each proposed charging depot.

An electric vehicle charging station which is installed under the Program may be owned by a public agency, the electric utility or a third-party provider.

The electric utility shall not allow a nongovernmental commercial customer to participate in the Transit, School Bus and Transportation Electrification Custom Program unless, as a condition of participation, the - *SB448_R1* – 44 – nongovernmental commercial customer electrifies more than 50 company vehicles or more than 25 percent of its fleet, and satisfies such additional qualifications as the electric utility may establish.

As part of the Transit, School Bus and Transportation Electrification Custom- Program,81st anSession electric(2021) utility– may47 partner– with a commercial site to allow for multiple ownership options for the electrical supply, storage and charging equipment, including, without limitation, ownership by the electric utility.

Eligibility for any customer incentivesparticipation in the Outdoor Recreation and Tourism Program must be offered by the electric utility on a nondiscriminatory basis to both the utility’s bundled retail customers and eligible customers, as defined in NRS 704B.080, who purchase or plan to purchase electricity from a provider of new electric resources, as defined in NRS 704B.130.

As part of the Outdoor Recreation and Tourism Program, an electric utility may partner with a commercial site to allow for multiple ownership options for the electrical supply, storage and charging equipment, including, without limitation, ownership by the electric utility.uti4.

4.

6.(c) Twenty percent of the total program expenditures proposed in a plan submitted pursuant to this section must be dedicated to incentives for behind-the-meter investments in electric vehicle cha6.ingAn electric utility shall submit to the Commission any program, software, contract or other instrument that may be used for the billing, control, operation or maintenance of the public and private chargers installed under a plan filed pursuant to this section.

AnThe electricprudent utilityand shallreasonable submitexpenditures made by the electric utility to evaluate the Commissionneed for any program, software, contract or other instrument thatto mayfacilitate be used for the billing, control, operation or maintenance of the public and private chargers installed under athe plan filedmay pursuantbe to- this81st section.Session (2021) – 48 – the utility.

The prudent and reasonable expenditures made by the electric utility to evaluate the need for any program, software, contract or other instrument to facilitate the billing, control, operation or maintenance of the public and private chargers installed under the plan may be recovered by the utility through rates charged to the customers of the7. utility.

- *SB448_R1* – 45 – 7.

If such a notice is filed, any petition for reconsideration or rehearing of the order must be filed with the Commission not later than 10 business days after the date the notice is filed.

Acceptance by the Commission of a plan submitted pursuant to this section constitutes a finding that the investments contained in the plan, including, without limitation, any proposed incentives to be provided to customers, are prudent and that the utility may recover from the rates charged to the utility’s customers all costs that the utility prudently and reasonably incurs to operate, maintain, develop and implement the plan, including, without limitation, any costs associated with acquiring the right to use and develop private or public land.

(2)- The81st electricSession utility’s(2021) authorized– rate49 – (3) Any depreciation of return;the utility’s investment in the facilities;

(3) Any depreciation of the utility’s investment in the facilities;

- *SB448_R1* – 46 – (b) Carrying charges shall not accrue for any month in which the electric utility earns in excess of its last authorized rate of return.

The rate must be charged to all of the customers in the service territory of the electric utility in which the plan assets reside and reflect all costs incurred in thethe12. electric utility’s service territory.

12.As used in this section:territory.

As used in this section:

A resource plan filed by an electric utility pursuant to NRS 704.741, as amended by section 39 of this act, on or before June 1, 2021, is not required to include, at the time the plan is filed, the transportation electrification plan required by section 14 of this act and NRS 704.741, as amended by section 3939by of this act.

- 81st Session (2021) – 50 – Sec.

The amendatory provisions of section 46 of this act dosection not46 applyof tothis aact.act contract entered into before the effective date of sectionSec. 46 of this act.

-53.5. *SB448_R1* – 47 – Sec.

The provisions of section 35 of this act apply prospectively.

The provisions of this section shall not be construed as a statement, clarification or interpretation of Nevada law as it existed prior to the effective date of this section or a statement of the intent of the Nevada Legislature concerning Nevada law as it existed prior to the effective date of this section.

Sec.

This section applies retroactively from and after MarchMarSec. 22, 2021.

Sec.

This section and sections 1 to 8,8.5, inclusive, 11 to 47, inclusive, 49 to 55, inclusive, and 57 of this act become effective upon passage and approval.

Sections 45, 46 and 47 of this act expire by limitation on the date on which the last contract entered into pursuant to the Program, - 81st Session (2021) – 51 – as defined in NRS 704.7874, terminates, whether termination is by expiration of the terms of the contract or otherwise.

LEADLINES~~~~~ OF21 REPEALED- SECTIONS81st 701.090Session “Task(2021) Force” defined.

701.500 Creation;

membership.

701.505 Chair;

meetings;

regulations;

quorum;

terms;

members serve without compensation.

701.510 Powers and duties.

701.515 Support and assistance to be provided by Director.

- *SB448_R1* – 48 – 701B.670 Legislative findings and declarations;

creation of Program;

regulations;

payment of incentives;

purchase of vehicle infrastructure;

review and approval by Commission ofic annual plans from utilities;

recovery of costs by utility.

H - *SB448_R1*