S.Amdt. 3120

SA 3120. Mr. KING (for himself and Mr. Reid) submitted an amendment
intended to be proposed to amendment SA 2953 proposed by Ms. Murkowski
to the bill S. 2012, to provide for the modernization of the energy
policy of the United States, and for other purposes; which was ordered
to lie on the table; as follows:

At the end of title III, add the following:

Subtitle I--Residential Renewable Energy Generation

SEC. 3801. EXISTING ON-SITE GENERATING CUSTOMERS.

(a) In General.--Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is
amended by adding at the end the following:
``(20) Consumer protections for on-site generating
facilities.--
``(A) Standard.--Once an electric consumer has been offered
and has accepted net metering service as described in
paragraph (11) from an electric utility, the State regulatory
authority with ratemaking authority over the electric utility
and the electric utility may not change the rate
classification of the consumer unless the State regulatory
authority or electric utility, as applicable, demonstrates,
in an evidentiary hearing in a general rate case, that the
current and future net benefits of the net metered system to
the distribution, transmission, and generation systems of the
electric utility are less than the full retail rate.
``(B) Restriction.--A State regulatory authority or
electric utility may not impose a new or higher rate (such as
a new fee or demand charge) on an existing electric consumer
taking net metering service as described in paragraph (11)
from an electric utility unless the new or higher rate is
also charged to all electric consumers in the same rate class
of the electric utility.
``(C) Effect.--Nothing in this paragraph prevents an
electric utility from charging rates to each rate class
designed to recover all reasonable costs to the electric
utility of providing service to the electric consumers in
that class.''.
(b) Compliance.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is
amended by adding at the end the following:
``(7) Before changing the rate classification of, or
imposing a new or higher rate on, an existing electric
consumer taking net metering service as described in section
111(d)(11), a State regulatory authority (with respect to
each electric utility for which the authority has ratemaking
authority) or a nonregulated electric utility shall, with
respect to the standard established by paragraph (20) of
section 111(d)--
``(A) conduct a hearing and complete the consideration
required under that paragraph; and
``(B) make the determination referred to in section 111
with respect to the standard established by paragraph (20) of
section 111(d).''.

SEC. 3802. DISTRIBUTED ENERGY RESOURCES.

(a) In General.--Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) (as
amended by section 3801(a)) is amended by adding at the end
the following:
``(21) Distributed energy resources.--
``(A) Definition of distributed energy resource.--In this
paragraph, the term `distributed energy resource' means an
electric energy supply resource, technology, or service
that--
``(i) is interconnected to the distribution system of an
electric utility; and
``(ii) supplies electric energy to the distribution system
by generating or storing energy.
``(B) Requirement.--If a State regulatory authority
considers, through a rate proceeding or another mechanism
(such as consideration of fixed or minimum charges or any
other mechanism described in subparagraph (C)), modifying the
treatment of future net energy metering customers, the State
regulatory authority shall take into account the
considerations in subparagraph (C).
``(C) Considerations.--The considerations referred to in
subparagraph (B) include--
``(i) pricing for energy--

``(I) sold to an electric utility; or
``(II) purchased from an electric utility;

``(ii) capacity;
``(iii) the provision of ancillary services;
``(iv) the societal value of distributed energy resources;
``(v) transmission and distribution losses; and
``(vi) any other benefits that the State regulatory
authority considers to be appropriate.''.
(b) Compliance.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) (as
amended by section 3801(b)) is amended by adding at the end
the following:
``(8) Before considering, through a rate proceeding or
other mechanism, modifying the treatment of any future net
metering customer, a State regulatory authority (with respect
to each electric utility for which the authority has
ratemaking authority) or a nonregulated electric utility
shall, with respect to the standard established by paragraph
(21) of section 111(d)--
``(A) conduct a hearing and complete the consideration
required under that paragraph; and
``(B) make the determination referred to in section 111
with respect to the standard established by paragraph (21) of
section 111(d).''.
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