Montana HB 643: Revising net metering laws

Bill Text

Amendment - 1st Reading-white - Requested by: Greg Kmetz - (H) Energy, Technology and
Federal Relations
- 2023
68th Legislature 2023 Drafter: Trevor Graff, 406-444-4975 HB0643.001.001

- 1 - Authorized Print Version – HB 643

HOUSE BILL NO. 643 1
INTRODUCED BY J. KASSMIER 2
3
A BILL FOR AN ACT ENTITLED: “AN ACT REVISING NET METERING LAWS; INCREASING THE CAP ON 4
NET METERING SYSTEMS; REQUIRING THE PUBLIC SERVICE COMMISSION TO ESTABLISH 5
SEPARATE RATE CLASSIFICATIONS FOR CUSTOMER GENERATORS; REQUIRING A UTILITY TO 6
CONDUCT A COST-BENEFIT STUDY; PROVIDING RULEMAKING AUTHORITY; REVISING THE 7
DEFINITION OF "NET METERING SYSTEM"; AMENDING SECTIONS 69-8-103, 69-8-601, 69-8-602, 69-8-8
610, 69-8-611, AND 69-8-612, MCA; AMENDING SECTION 13, CHAPTER 248, LAWS OF 2017; AND 9
PROVIDING EFFECTIVE DATES.” 10
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA: 12
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Section 1. Section 69-8-103, MCA, is amended to read: 14
"69-8-103. Definitions. As used in this chapter, unless the context requires otherwise, the following 15
definitions apply: 16
(1) "Assignee" means any entity, including a corporation, partnership, board, trust, or financing 17
vehicle, to which a utility assigns, sells, or transfers, other than as security, all or a portion of the utility's interest 18
in or right to transition property. The term also includes an entity, corporation, public authority, partnership, 19
trust, or financing vehicle to which an assignee assigns, sells, or transfers, other than as security, the 20
assignee's interest in or right to transition property. 21
(2) "Board" means the board of investments created by 2-15-1808. 22
(3) "Carbon offset provider" means a qualified third-party entity that arranges for projects or actions 23
that either reduce carbon dioxide emissions or increase the absorption of carbon dioxide. 24
(4) "Cooperative utility" means: 25
(a) a utility qualifying as an electric cooperative pursuant to Title 35, chapter 18; or 26
(b) an existing municipal electric utility as of May 2, 1997. 27

Amendment - 1st Reading-white - Requested by: Greg Kmetz - (H) Energy, Technology and
Federal Relations
- 2023
68th Legislature 2023 Drafter: Trevor Graff, 406-444-4975 HB0643.001.001

- 6 - Authorized Print Version – HB 643

the costs of recovering, reimbursing, financing, or refinancing the transition costs and acquiring transition 1
property, including the costs of issuing, servicing, and retiring transition bonds. Any right that a utility has in the 2
transition property before the utility's sale or transfer or any other right created under this section or created in 3
the financing order and assignable under this chapter or assignable pursuant to a financing order is only a 4
contract right. 5
(30) "Transmission facilities" means those facilities that are used to provide transmission services 6
as determined by the federal energy regulatory commission and the commission and that are controlled or 7
operated by a utility. 8
(31) "Universal system benefits charge" means a nonbypassable rate or charge to be imposed on a 9
customer to pay the customer's share of universal system benefits programs costs. 10
(32) "Universal system benefits programs" means public purpose programs for: 11
(a) cost-effective local energy conservation; 12
(b) low-income customer weatherization; 13
(c) renewable resource projects and applications, including those that capture unique social and 14
energy system benefits or that provide transmission and distribution system benefits; 15
(d) research and development programs related to energy conservation and renewables; 16
(e) market transformation designed to encourage competitive markets for public purpose 17
programs; and 18
(f) low-income energy assistance. 19
(33) "Utility" means any public utility or cooperative utility." 20
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Section 2. Section 69-8-601, MCA, is amended to read: 22
"69-8-601. Legislative findings. The legislature finds that it is in the public interest to promote net 23
metering because it: 24
(1) encourages private investment in renewable energy resources; 25
(2) stimulates Montana's economic growth; and 26
(3) enhances the continued diversification of the energy resources used in Montana." 27

Amendment - 1st Reading-white - Requested by: Greg Kmetz - (H) Energy, Technology and
Federal Relations
- 2023
68th Legislature 2023 Drafter: Trevor Graff, 406-444-4975 HB0643.001.001

- 8 - Authorized Print Version – HB 643

metering equipment are to be allocated between the customer-generator and the public utility. 1
(3) (a) The commission shall charge the customer-generator an appropriate rate pursuant to 69-3-2
306. 3
(b) Notwithstanding 69-8-610 through 69-8-612, if the commission determines, after appropriate 4
notice and opportunity for comment, that a public utility is incurring direct costs associated with interconnecting 5
or administering net metering systems that exceed any offsetting benefits associated with these net metering 6
systems, the commission ma