HB277 By Representative Johnson (K) RFD Transportation, Utilities and Infrastructure Rd 1 23-FEB-16

SYNOPSIS: This bill would authorize a retail electric service customer to install or have installed solar technology for the generation of electricity for his or her own use and to finance such installation though a solar financing agent.

This bill would prohibit an electric supplier or utility from preventing, penalizing, discriminating against, or otherwise interfering with the installation or financing of solar technology by a retail electric service customer through a solar financing agent and from requiring the purchase of additional equipment or insurance or to perform additional testing other than that required by all applicable safety codes.

This bill would specify that such a solar financing agent would not be considered a supplier of electricity or a utility.

This bill would specify that the agreement between a retail electric service customer and a solar financing agent shall not be considered a private contract for electric service.

A BILL TO BE ENTITLED AN ACT

To add Chapter 4A, commencing with Section 37-4A-1, to Title 37 of the Code of Alabama 1975, to provide for the installation, use, and financing of solar technology for use by a retail electric customer; to prohibit an electric supplier or utility from preventing, penalizing, discriminating against, or otherwise interfering with the installation or financing of solar technology; to prohibit an electric supplier or utility from requiring the retail electric customer to purchase additional equipment or insurance or to perform additional testing other than that required by all applicable safety codes; to provide that a solar financing agent would not be considered a supplier of electricity or a utility; and to specify that the agreement between a retail electric service customer and a solar financing agent shall not be considered a private contract for electric service.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. Chapter 4A is added to Title 37 of the Code of Alabama 1975, as follows:

Chapter 4A. Solar Power Financing

§37-4A-1.

(a) This chapter shall be known and may be cited as the Solar Power Free-Market Financing and Property Rights Act of 2016.

(b) The Legislature finds that:

(1) It is in the public interest to encourage free choice for customers of retail electric services to save on their power bills by investing in current technologies, including energy efficient lighting, energy efficient appliances and air conditioning systems, and solar technologies for the on-site generation of electricity.

(2) Free market financing of solar technologies will provide more customers with opportunities to increase energy and cost savings.

(3) Leases, power purchase agreements, and other similar arrangements are financing arrangements that reduce or eliminate up-front costs involved in solar technology investments by retail electric service customers, thereby creating immediate cost saving opportunities.

(4) Retail electric service customers who finance their investment in solar technology and those individuals and entities that offer such financing opportunities through leases or power purchase agreements should not be considered or treated as an electric supplier or utility for any purpose in this title.

§37-4A-2.

As used in this chapter, the following terms have the following meanings:

(1) ELECTRIC SUPPLIER. An electric supplier as defined in Section 37-14-2.

(2) PRIVATE CONTRACT FOR ELECTRIC SERVICE. A contract as defined in subsection (b) of Section 37-4-30.

(3) RETAIL ELECTRIC SERVICE. A service as defined in Section 37-14-2.

(4) RETAIL ELECTRIC SERVICE CUSTOMER. A person who purchases retail electric service from an electric supplier for his or her own use and not for the purpose of resale.

(5) SOLAR FINANCING AGENT. An individual or entity whose business includes the installation or financing of solar technology on property owned or occupied by a retail electric service customer primarily for the on-site generation of electric energy.

(6) SOLAR TECHNOLOGY. A system that generates electric energy that is fueled by ambient sunlight and is installed upon property owned or occupied by a retail electric service consumer.

(7) UTILITY. A utility as defined in Section 37-4-1.

§37-4A-3.

(a) A retail electric service customer may install or have installed solar technology for the generation of electric energy for use primarily on property owned or occupied by that customer. The solar technology and its installation may be financed by the retail electric service customer through a solar financing agent utilizing a loan, lease, power purchase agreement, or any other form of financing agreement.

(b) No electric supplier or utility shall prevent, penalize, discriminate against, or otherwise interfere with the installation or financing of solar technology by a retail electric service customer through a solar financing agent pursuant to subsection (a).

(c) An electric supplier may require the retail electric service customer or solar financing agent to provide, at the customer's or solar financing agent's expense, only such equipment as is necessary to meet applicable safety, power quality, and interconnection requirements established by the National Electrical Code, the National Electrical Safety Code, the Institute of Electrical and Electronics Engineers, and the Underwriters Laboratories prior to interconnecting the solar technology to the retail electric service system. If the applicable safety, power quality, and interconnection requirements are met, an electric supplier may not require compliance with additional safety or performance standards, the performance of or payment for additional tests, or the purchase of additional liability insurance.

§37-4A-4.

(a) A provision in a loan, lease, power purchase agreement, or other form of financing agreement for payments to a solar financing agent by a retail electric service customer based on the amount of electricity furnished to such customer shall not be considered the providing of electricity to the public, the providing of electric service or retail electric service, or the supplying of electric service at retail by the solar financing agent, nor shall it be considered a private contract for electric service.

(b) Notwithstanding any other provision of law, a solar financing agent shall not be considered an electric supplier or utility for any purpose in this title.

(c) Notwithstanding any other provision of law, an agreement between a retail electric service customer and a solar financing agent related to the installation or financing of solar technology on property owned or occupied by a retail electric service customer shall not be considered a private contract for electric service.

§37-4A-5.

Nothing in this chapter shall be construed to create or alter rights in real property or to change any restrictions or regulations on the use of real property that may exist, including, but not limited to, a covenant, contract, ordinance, or state or federal law.

Section 2. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.

Solar Energy

Utilities

Electric Service

Solar Financing Agent

Code Added