I 
111TH CONGRESS 
1ST SESSION H. R. 2895 
To amend the Public Utility Regulatory Policies Act of 1978 to promote 
energy independence and self-sufficiency by providing for the use of 
net metering by certain small electric energy generation systems, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 16, 2009 
Mr. CARDOZA (for himself and Mr. LUJA´N) introduced the following bill; 
which was referred to the Committee on Energy and Commerce, and in 
addition to the Committees on Oversight and Government Reform, Finan-
cial Services, and Transportation and Infrastructure, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
of such provisions as fall within the jurisdiction of the committee con-
cerned 
A BILL 
To amend the Public Utility Regulatory Policies Act of 1978 
to promote energy independence and self-sufficiency by 
providing for the use of net metering by certain small 
electric energy generation systems, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Solar Opportunity and 
Local Access Rights Act’’. 
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
SEC. 2. NET METERING AND INTERCONNECTION STAND-
ARDS. 
(a) IN GENERAL.—Section 113 of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2623) is 
amended by adding at the end the following: 
‘‘(d) NET METERING.— 
‘‘(1) DEFINITIONS.—In this subsection and 
subsection (e): 
‘‘(A) CUSTOMER-GENERATOR.—The term 
‘customer-generator’ means the owner or oper-
ator of a qualified generation unit. 
‘‘(B) ELECTRIC GENERATION UNIT.—The 
term ‘electric generation unit’ means— 
‘‘(i) a qualified generation unit; and 
‘‘(ii) any electric generation unit that 
qualifies for net metering under a net me-
tering tariff or rule approved by a State. 
‘‘(C) LOCAL DISTRIBUTION SYSTEM.—The 
term ‘local distribution system’ means any sys-
tem for the distribution of electric energy to the 
ultimate consumer of the electricity, whether or 
not the owner or operator of the system is a re-
tail electric supplier. 
‘‘(D) NET METERING.—The term ‘net me-
tering’ means the process of— 
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
‘‘(i) measuring the difference between 
the electricity supplied to a customer-gen-
erator and the electricity generated by the 
customer-generator that is delivered to a 
local distribution system at the same point 
of interconnection during an applicable 
billing period; and 
‘‘(ii) providing an energy credit to the 
customer-generator in the form of a kilo-
watt-hour credit for each kilowatt-hour of 
energy produced by the customer-generator 
from a qualified generation unit. 
‘‘(E) QUALIFIED GENERATION UNIT.—The 
term ‘qualified generation unit’ means an elec-
tric energy generation unit that uses as the en-
ergy source of the unit solar energy to generate 
electricity to heat or cool that— 
‘‘(i) has a generating capacity of not 
more than 5,000 kilowatts; 
‘‘(ii) is located on premises that are 
owned, operated, leased, or otherwise con-
trolled by the customer-generator; 
‘‘(iii) operates in parallel with the re-
tail electric supplier; and 
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
‘‘(iv) is intended primarily to offset all 
or part of the requirements of the cus-
tomer-generator for electric energy. 
‘‘(F) RETAIL
ELECTRIC
SUPPLIER.—The 
term ‘retail electric supplier’ means any electric 
utility that sells electric energy to the ultimate 
consumer of the energy. 
‘‘(2) ADOPTION.—Not later than 1 year after 
the date of enactment of this subsection, each State 
regulatory authority (with respect to each electric 
utility for which the State regulatory authority has 
ratemaking authority), and each nonregulated elec-
tric utility, shall— 
‘‘(A) provide public notice and conduct a 
hearing with respect to the standards estab-
lished under paragraph (3); and 
‘‘(B) on the basis of the hearing, adopt the 
standard. 
‘‘(3) ESTABLISHMENT
OF
NET
METERING 
STANDARD.— 
‘‘(A) IN
GENERAL.—Each retail electric 
supplier shall offer to arrange (either directly or 
through a local distribution company or other 
third party) to make net metering available, on 
a first-come, first-served basis, to each of the 
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
retail customers of the retail electric supplier in 
accordance with the requirements described in 
subparagraph (B) and other provisions of this 
subsection. 
‘‘(B) REQUIREMENTS.—The requirements 
referred to in subparagraph (A) are, with re-
spect to a retail electric supplier, that— 
‘‘(i) rates and charges and contract 
terms and conditions for the sale of electric 
energy to customer-generators shall be the 
same as the rates and charges and con-
tract terms and conditions that would be 
applicable if the customer-generator did 
not own or operate a qualified generation 
unit and use a net metering system; and 
‘‘(ii) each retail electric supplier shall 
notify all of the retail customers of the re-
tail electric supplier of the standard estab-
lished under this paragraph as soon as 
practicable after the adoption of the stand-
ard. 
‘‘(4) NET ENERGY MEASUREMENT.— 
‘‘(A) IN
GENERAL.—Each retail electric 
supplier shall arrange to provide to customer- 
generators who qualify for net metering under 
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
subsection (b) an electrical energy meter capa-
ble of net metering and measuring, to the max-
imum extent practicable, the flow of electricity 
to or from the customer, using a single meter 
and single register. 
‘‘(B) IMPRACTICABILITY.—In a case in 
which it is not practicable to provide a meter to 
a customer-generator under subparagraph (A), 
a retail electric supplier (either directly or 
through a local distribution company or other 
third party) shall, at the expense of the retail 
electric supplier, install 1 or more of those elec-
tric energy meters for the customer-generators 
concerned. 
‘‘(5) BILLING.— 
‘‘(A) IN
GENERAL.—Each retail electric 
supplier subject to subsection (b) shall calculate 
the electric energy consumption for a customer 
using a net metering system in accordance with 
subparagraphs (B) through (D). 
‘‘(B) MEASUREMENT
OF
ELECTRICITY.— 
The retail electric supplier shall measure the 
net electricity produced or consumed during the 
billing period using the metering installed in ac-
cordance with paragraph (4). 
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
this clause shall be applied to cus-
tomer-generator electric energy con-
sumption on the following billing pe-
riod bill (except for a billing period 
that ends in the next calendar year). 
‘‘(III) CARRYOVER
OF
UNUSED 
CREDITS.—At the beginning of each 
12-month period, any unused kilo-
watt-hour credits remaining from the 
preceding year will carry over to the 
new 12-month period. 
‘‘(D) 
USE
OF
TIME-DIFFERENTIATED 
RATES.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), if a customer-generator 
is using a meter and retail billing arrange-
ment that has time-differentiated rates— 
‘‘(I) the kilowatt-hour credit shall 
be based on the ratio representing the 
difference in retail rates for each 
time-of-use rate; or 
‘‘(II) the credits shall be reflected 
on the bill of the customer-generator 
as a monetary credit reflecting retail 
rates at the time of generation of the 
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
electric energy by the customer-gener-
ator. 
‘‘(ii) DIFFERENT TARIFFS OR SERV-
ICES.—A retail electric supplier shall offer 
a customer-generator the choice of a time- 
differentiated energy tariff rate or a 
nontime-differentiated energy tariff rate, if 
the retail electric supplier offers the choice 
to customers in the same rate class as the 
customer-generator. 
‘‘(6) PERCENT LIMITATIONS.— 
‘‘(A) 8 PERCENT LIMITATION.—The stand-
ard established under this subsection shall not 
apply for a calendar year in the case of a cus-
tomer-generator served by a local distribution 
company if the total generating capacity of all 
customer-generators with net metering systems 
served by the local distribution company in the 
calendar year is equal to or more than 8 per-
cent of the capacity necessary to meet the aver-
age forecasted aggregate customer peak de-
mand of the company for the calendar year. 
‘‘(B) 4 PERCENT LIMITATION.—The stand-
ard established under this subsection shall not 
apply for a 12-month period in the case of a 
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
customer-generator served by a local distribu-
tion company if the total generating capacity of 
all customer-generators with net metering sys-
tems served by the local distribution company 
in the calendar year using a single type of 
qualified generation unit is equal to or more 
than 4 percent of the capacity necessary to 
meet the forecasted aggregate customer peak 
demand of the company for the calendar year. 
‘‘(C) RECORDS AND NOTICE.— 
‘‘(i) RECORDS.—Each retail electric 
supplier shall maintain, and make available 
to the public, records of— 
‘‘(I) the total generating capacity 
of customer-generators of the system 
of the retail electric supplier that are 
using net metering; and 
‘‘(II) the type of generating sys-
tems and energy source used by the 
electric generating systems used by 
the customer-generators. 
‘‘(ii) NOTICE.—Each such retail elec-
tric supplier shall notify the State regu-
latory authority and the Commission at 
each time at which the total generating ca-
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
pacity of the customer-generators of the 
retail electric supplier reaches a level that 
equals or exceeds— 
‘‘(I) 75 percent of the limitation 
specified in subparagraph (B); or 
‘‘(II) the limitation specified in 
subparagraph (B). 
‘‘(7) OWNERSHIP OF CREDITS.— 
‘‘(A) IN GENERAL.—For purposes of Fed-
eral and State laws providing renewable energy 
credits or greenhouse gas credits, a customer- 
generator with a qualified generation unit and 
net metering shall be treated as owning and 
having title to the renewable energy attributes, 
renewable energy credits and greenhouse gas 
emission credits relating to any electricity pro-
duced by the qualified generation unit. 
‘‘(B) RETAIL
ELECTRIC
SUPPLIERS.—No 
retail electric supplier shall claim title to or 
ownership of any renewable energy attributes, 
renewable energy credits, or greenhouse gas 
emission credits of a customer-generator as a 
result of interconnecting the customer-generator 
or providing or offering the customer-generator 
net metering. 
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
‘‘(8) SAFETY
AND
PERFORMANCE
STAND-
ARDS.— 
‘‘(A) IN GENERAL.—A qualified generation 
unit and net metering system used by a cus-
tomer-generator shall meet all applicable safety 
and performance and reliability standards es-
tablished by— 
‘‘(i) the national electrical code; 
‘‘(ii) the Institute of Electrical and 
Electronics Engineers; 
‘‘(iii) Underwriters Laboratories; or 
‘‘(iv) the American National Stand-
ards Institute. 
‘‘(B) ADDITIONAL
CHARGES.—The Com-
mission shall, after consultation with State reg-
ulatory authorities and nonregulated local dis-
tribution systems and after notice and oppor-
tunity for comment, prohibit by regulation the 
imposition of additional charges by retail elec-
tric suppliers and local distribution systems for 
equipment or services for safety or performance 
that are in addition to those necessary to meet 
the standards and requirements referred to in 
subparagraph (A) and subsection (e). 
‘‘(9) DETERMINATION OF COMPLIANCE.— 
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
‘‘(A) IN GENERAL.—Any State regulatory 
authority (with respect to each electric utility 
for which the authority has ratemaking author-
ity), and each nonregulated electric utility, may 
apply to the Commission for a determination 
that any State net metering requirement or reg-
ulations complies with this subsection. 
‘‘(B) ORDERS.—In the absence of a deter-
mination under subparagraph (A), the Commis-
sion, on the motion of the Commission or pur-
suant to the petition of any interested person, 
may, after notice and opportunity for a hearing 
on the record, issue an order requiring against 
any retail electric supplier or local distribution 
company to require compliance with this sub-
section. 
‘‘(C) ENFORCEMENT.— 
‘‘(i) IN GENERAL.—Any person who 
violates this subsection shall be subject to 
a civil penalty in the amount of $500 for 
each day that the violation continues. 
‘‘(ii) ASSESSMENT.—The penalty may 
be assessed by the Commission, after no-
tice and opportunity for hearing, in the 
same manner as penalties are assessed 
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
under section 31(d) of the Federal Power 
Act (16 U.S.C. 823b(d)). 
‘‘(e) INTERCONNECTION STANDARDS.— 
‘‘(1) MODEL STANDARDS.— 
‘‘(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of this subsection, 
the Commission shall publish model standards 
for the physical connection between local dis-
tribution systems and qualified generation units 
and electric generation units that— 
‘‘(i) are qualified generation units (as 
defined in subsection (d)(1)(E) other than 
clause (ii) of subsection (d)(1)(E)); and 
‘‘(ii) do not exceed 5 megawatts of ca-
pacity. 
‘‘(B) PURPOSES.—The model standards 
shall be designed to— 
‘‘(i) encourage the use of qualified 
generation units; and 
‘‘(ii) ensure the safety and reliability 
of the qualified generation units and the 
local distribution systems interconnected 
with the qualified generation units. 
‘‘(C) PROCEDURES.— 
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
‘‘(i) IN GENERAL.—The model stand-
ards shall have 2 separate procedures, in-
cluding— 
‘‘(I) 
a 
standard 
for 
inter-
connecting qualified generation units 
of not more than 15 kilowatts; and 
‘‘(II) a separate standard that 
expedites interconnection for qualified 
generation units of more than 15 kilo-
watts but not more than 5 megawatts. 
‘‘(ii) BEST
PRACTICES.—The proce-
dures shall be based on the best practices 
that have been used in States that have 
adopted interconnection standards. 
‘‘(iii) MODEL RULE.—In designing the 
procedures, the Commission shall consider 
Interstate 
Renewable 
Energy 
Council 
Model Rule MR–I2005. 
‘‘(D) TIMELINE.— 
‘‘(i) IN GENERAL.—Not later than 2 
years after the date of enactment of this 
subsection, each State shall— 
‘‘(I) adopt the model standards 
established under this paragraph, with 
or without modification; and 
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
‘‘(II) submit the standards to the 
Commission for approval. 
‘‘(ii) APPROVAL OF MODIFICATION.— 
The Commission shall approve a modifica-
tion of the model standards only if the 
Commission determines that the modifica-
tion is— 
‘‘(I) consistent with or superior 
to the purpose of the standards; and 
‘‘(II) required by reason of local 
conditions. 
‘‘(E) NONAPPROVAL OF STANDARDS FOR A 
STATE.—If standards have not been approved 
under this paragraph by the Commission for 
any State during the 2-year period beginning 
on the date of enactment of this subsection, the 
Commission shall, by rule or order, enforce the 
model standards of the Commission in the State 
until such time as State standards are approved 
by the Commission. 
‘‘(F) UPDATES.— 
‘‘(i) IN GENERAL.—Not later than 2 
years after the date of enactment of this 
subsection and after notice and oppor-
tunity for comment, the Commission shall 
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
publish an update of the model standards, 
after considering changes in the underlying 
standards and technologies. 
‘‘(ii) 
AVAILABILITY.—The 
updates 
shall be made available to State regulatory 
authorities for the consideration of the au-
thorities. 
‘‘(2) SAFETY, 
RELIABILITY, 
PERFORMANCE, 
AND COST.— 
‘‘(A) IN GENERAL.—The standards under 
this subsection shall establish such measures 
for the safety and reliability of the affected 
equipment and local distribution systems as are 
appropriate. 
‘‘(B) ADMINISTRATION.—The standards 
shall— 
‘‘(i) be consistent with all applicable 
safety and performance standards estab-
lished by— 
‘‘(I) the national electrical code; 
‘‘(II) the Institute of Electrical 
and Electronics Engineers; 
‘‘(III) Underwriters Laboratories; 
or 
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
‘‘(IV) the American National 
Standards Institute; and 
‘‘(ii) impose not more than such min-
imum cost and technical burdens to the 
interconnecting customer generator as the 
Commission determines, by rule, are prac-
ticable. 
‘‘(3) ADDITIONAL CHARGES.—The model stand-
ards under this subsection shall prohibit the imposi-
tion of additional charges by local distribution sys-
tems for equipment or services for interconnection 
that are in excess of— 
‘‘(A) the charges necessary to meet the 
standards; and 
‘‘(B) the charges and equipment require-
ments identified in the best practices of States 
with interconnection standards. 
‘‘(4) RELATIONSHIP TO EXISTING LAW REGARD-
ING INTERCONNECTION.—Nothing in this subsection 
affects the application of section 111(d)(15) relating 
to interconnection. 
‘‘(5) CONSUMER-FRIENDLY CONTRACTS.— 
‘‘(A) 
IN
GENERAL.—The 
Commission 
shall— 
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
‘‘(i) promulgate regulations that en-
sure that simplified contracts will be used 
for the interconnection of electric energy 
by electric energy transmission or local dis-
tribution systems and generating facilities 
that have a power production capacity of 
not greater than 5,000 kilowatts; and 
‘‘(ii) consider the best practices for 
consumer-friendly contracts that are used 
by States or national associations of State 
regulators. 
‘‘(B) LIABILITY OR INSURANCE.—The con-
tracts shall not require liability or other insur-
ance in excess of the liability or insurance that 
is typically carried by customer-generators for 
general liability.’’. 
(b) CONFORMING AMENDMENT.—Section 1262 of the 
Public Utility Holding Company Act of 2005 (42 U.S.C. 
16451) is amended by striking paragraph (5) and insert-
ing the following: 
‘‘(5) ELECTRIC UTILITY COMPANY.— 
‘‘(A) IN
GENERAL.—The term ‘electric 
utility company’ means any company that owns 
or operates facilities used for the generation, 
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
transmission, or distribution of electric energy 
for sale. 
‘‘(B) EXCLUSION.—The term ‘electric util-
ity company’ does not include an electric gen-
eration unit (as defined in section 113(d) of the 
Public Utility Regulatory Policies Act of 
1978).’’. 
SEC. 3. RELATIONSHIP TO STATE LAW. 
Section 117(b) of the Public Utility Regulatory Poli-
cies Act of 1978 (16 U.S.C. 2627(b)) is amended— 
(1) by striking ‘‘Nothing’’ and inserting the fol-
lowing: 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), nothing’’; and 
(2) by adding at the end the following: 
‘‘(2) NET
METERING
AND
INTERCONNECTION 
STANDARDS.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), no State or nonregulated utility may 
adopt or enforce any standard or requirement 
concerning net metering or interconnection that 
restricts access to the electric power trans-
mission or local distribution system by qualified 
generators beyond those standards and require-
ments established under section 113. 
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS