[Congressional Record Volume 162, Number 17 (Thursday, January 28, 2016)]
[Senate]
[Page S385]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  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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