A bill to amend the Public Utility Regulatory Policies Act of 1978 to require electric utilities to provide net metering service.

SECTION 1. NET METERING.

    (a) Adoption of Standard.--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:
            ``(11) Net metering.--
                    ``(A) In general.--On the request of any electric 
                consumer served by an electric utility, the electric 
                utility shall make available to the electric consumer 
                net metering as provided in section 115(i).
                    ``(B) Consideration by state regulatory 
                authorities.--Notwithstanding subsections (b) and (c) 
                of section 112, not later than 1 year after the date of 
                enactment of this paragraph, a State regulatory 
                authority may consider and make a determination 
                concerning whether it is in the public interest to 
                decline to implement subparagraph (A) in the State.
                    ``(C) Incentives.--Nothing in this paragraph 
                precludes a State from establishing incentives to 
                encourage on-site generating facilities and net 
                metering in addition to the requirement under this 
                subsection.
                    ``(D) Reports.--Not later than 1 year after the 
                date of enactment of this paragraph and annually 
                thereafter, the Secretary shall submit to Congress a 
                report that--
                            ``(i) describes the status of 
                        implementation by the States of subparagraph 
                        (A);
                            ``(ii) contains a list of pre-approved 
                        systems and equipment eligible for uniform 
                        interconnection treatment; and
                            ``(iii) describes the public benefits that 
                        have been derived from net metering and 
                        interconnection standards.''.
    (b) Special Rules for Net Metering.--Section 115 of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625) is amended by 
adding at the end the following:
    ``(i) Net Metering.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Eligible on-site generating facility.--The 
                term `eligible on-site generating facility' means--
                            ``(i) a facility on the site of a 
                        residential electric consumer with a maximum 
                        generating capacity of 25 kilowatts or less 
                        that is fueled by solar energy, wind energy, or 
                        fuel cells; and
                            ``(ii) a facility on the site of a 
                        commercial electric consumer with a maximum 
                        generating capacity of 1000 kilowatts or less 
                        that is fueled solely by a renewable energy 
                        resource, landfill gas, or a high-efficiency 
                        system.
                    ``(B) High efficiency system.--The term `high 
                efficiency system' means a system that is comprised 
                of--
                            ``(i) fuel cells; or
                            ``(ii) combined heat and power.
                    ``(C) Net metering service.--The term `net metering 
                service' means service to an electric consumer, as 
                provided in section 111(d)(11), under which electric 
                energy generated by that electric consumer from an 
                eligible on-site generating facility and delivered to 
                the local distribution facilities may be used to offset 
                electric energy provided by the electric utility to the 
                electric consumer during the applicable billing period.
                    ``(D) Renewable energy resource.--The term 
                `renewable energy resource' means solar, wind, biomass, 
                micro-freeflow-hydro, or geothermal energy.
            ``(2) Net metering service.--For the purposes of 
        undertaking the consideration and making the determination with 
        respect to the standard concerning net metering established by 
        section 111(d)(11), the term `net metering service' means a 
        service provided in accordance with this subsection.
            ``(3) Charges by an electric utility.--An electric 
        utility--
                    ``(A) shall charge the owner or operator of an on-
                site generating facility rates and charges that are 
                identical to those that would be charged other electric 
                consumers of the electric utility in the same rate 
                class; and
                    ``(B) shall not charge the owner or operator of an 
                on-site generating facility any additional standby, 
                capacity, interconnection, or other rate or charge.
            ``(4) Measurement of quantities.--An electric utility that 
        sells electric energy to the owner or operator of an on-site 
        generating facility shall measure the quantity of electric 
        energy produced by the on-site facility and the quantity of 
        electric energy consumed by the owner or operator of an on-site 
        generating facility during a billing period with a single bi-
        directional meter or otherwise in accordance with reasonable 
        metering practices.
            ``(5) Quantity sold in excess of quantity supplied.--If the 
        quantity of electric energy sold by the electric utility to an 
        on-site generating facility exceeds the quantity of electric 
        energy supplied by the on-site generating facility to the 
        electric utility during the billing period, the electric 
        utility may bill the owner or operator for the net quantity of 
        electric energy sold, in accordance with reasonable metering 
        practices.
            ``(6) Quantity supplied in excess of quantity sold.--If the 
        quantity of electric energy supplied by the on-site generating 
        facility to the electric utility exceeds the quantity of 
        electric energy sold by the electric utility to the on-site 
        generating facility during the billing period--
                    ``(A) the electric utility may bill the owner or 
                operator of the on-site generating facility for the 
                appropriate charges for the billing period in 
                accordance with paragraph (5); and
                    ``(B) the owner or operator of the on-site 
                generating facility shall be credited for the excess 
                kilowatt-hours generated during the billing period 
                with--
                            ``(i) a kilowatt-hour credit appearing on 
                        the bill for the following billing period; or
                            ``(ii) a cash refund.
            ``(7) Compliance with standards.--An eligible on-site 
        generating facility and net metering system used by an electric 
        consumer shall meet all applicable safety, performance, 
        reliability, and interconnection standards established by the 
        National Electrical Code, the Institute of Electrical and 
        Electronics Engineers, and Underwriters Laboratories.
            ``(8) Requirements.--The Commission, after consideration of 
        all applicable safety, performance, reliability, and 
        interconnection standards established by the National 
        Electrical Code, the Institute of Electrical and Electronics 
        Engineers, and Underwriters Laboratories, and consultation with 
        State regulatory authorities and unregulated electric 
        utilities, and after notice and opportunity for comment, shall 
        promulgate additional control, testing, and interconnection 
        requirements for on-site generating facilities and net metering 
        systems that the Commission determines are necessary to protect 
        public safety and system reliability.''.

Summary: Amends the Public Utility Regulatory Policies Act of 1978 to require each electric utility to make net metering service available upon consumer request. Permits a State regulatory authority, one year after enactment of this Act, to determine whether it is in the public interest to decline to implement such requirement. Permits a State to establish incentives to encourage on-site generating facilities and net metering in addition to the requirements of this Act. Requires an electric utility to charge the owner or operator of an on-site generating facility rates that are identical to those charged to its other electric consumers in the same rate class. Bars such utility from charging the owner or operator of an on-site generating facility any additional standby, capacity, interconnection, or other charges. Prescribes guidelines for: (1) electric energy sales to the owner or operator of an on-site generating facility. And (2) measurements of electric energy consumed. Directs the Federal Energy Regulatory Commission to promulgate additional control, testing, and interconnection requirements for on-site generating facilities and net metering systems deemed necessary to protect public safety and system reliability.