SB 226

This bill authorizes the establishment of community solar programs through

which retail electric customers of an investor-owned electric utility may subscribe

to a community solar facility and receive credits to their electric bills for electricity

produced by the facility. Under the bill, entities called subscriber organizations may

own or operate community solar facilities, which use solar energy to produce

electricity. Retail electric customers may enter into a contract (subscription) with a

subscriber organization through which the customers receive credits towards their

electric bill based on their subscriptions. A subscriber and the community solar

facility to which the subscriber subscribes must be located within the service

territory of the same investor-owned electric utility. In addition, a subscriber may

not receive an annual value of bill credits that exceeds the subscriber's average

annual electric bill. Also, under the bill, subscribers may not receive any state

subsidy for which generating electricity from a renewable energy resource is a

criteria for eligibility nor may subscribers receive any payment or other benefit from

a tax incremental district.

The bill requires an investor-owned electric utility whose service territory

includes subscribers to a community solar facility to credit the electric bills of the

subscribers based on their subscriptions. Also, under the bill, at the time that an

investor-owned electric utility files tariffs with the Public Service Commission, the

investor-owned electric utility must include options in the tariffs that allow

subscribers to receive bill credits for subscriptions to community solar facilities. PSC

must promulgate rules allowing for establishment of community solar facilities and

for subscribers to receive electric bill credits for their subscriptions. PSC must also

establish a rate used to calculate the amount of bill credits that subscribers receive,

and the rate must be set for each investor-owned electric utility at a reasonably

compensatory level that creates a community solar market that is capable of being

financed considering the costs and benefits provided by community solar facilities.

Under the bill, the PSC's community solar program rules must also satisfy various

other requirements, including that the rules must modify existing interconnection

standards, fees, and processes to facilitate interconnection of community solar

facilities with the electric distribution grid; allow investor-owned electric utilities to

recover costs of applying credits to subscribers' bills; and require subscriber

organizations to maintain proof of financial responsibility ensuring the availability

of funds for decommissioning community solar facilities.

The bill also specifies that community solar facilities are subject to the zoning

ordinances applicable to the parcels on which they are located. Also under the bill,

community solar facilities may not be established in a municipality unless the

governing body of the municipality approves the establishment by a two-thirds vote.

The bill also subjects the community solar facilities of subscriber organizations to

property taxation. Under current law, a person engaged in generating electricity for