Improve Customer Use Distributed Energy Resources

     The act defines, and creates requirements for, portable-scale solar generation devices. In addition, the act prohibits a provider of retail electric service or wholesale energy from, among other things, requiring a customer to obtain the provider's approval before installing or using a portable-scale solar generation device. The act also prohibits a person from directly or indirectly unreasonably prohibiting the installation, use, or operation of a portable-scale solar generation device. A covenant or restriction that explicitly or indirectly unreasonably prohibits or restricts the installation, use, or operation of a portable-scale solar generation device is unenforceable and void as a matter of public policy, though a real property owner may require reasonable restrictions.

     The act clarifies that a portable-scale solar generation device is considered an energy efficiency measure on and after January 1, 2027, and a unit owners' association of a common interest community is therefore not permitted to prohibit the installation or use of a portable-scale solar generation device. However, a real property owner that resides in a common interest community and installs a portable-scale solar generation device may be required to reasonably secure the device to their unit and may be responsible for all liability and costs associated with the device's installation, maintenance, or removal.

     The act specifies that a provider of retail electric service or wholesale energy is not liable for any damage caused by a portable-scale solar generation device and requires that the installation of a portable-scale solar generation device be in accordance with fire code requirements and applicable building codes that pertain to health and safety.

     Under current law, a utility that is subject to regulation by the public utilities commission (commission) must allow for customer ownership and use of a meter collar adapter through the utility's interconnection standards. The act requires the commission, on or before December 31, 2026, to revise existing commission interconnection rules to explicitly require commission-regulated utilities to:

• Maintain a public list of at least one approved meter collar adapter;
• Have a process for approving a meter collar adapter that is not included in the public list;
• Approve proposed meter collar adapters that meet certain technical requirements;
• If the installation of an approved meter collar adapter requires relocation of the meter enclosure or replacement of the meter housing, provide an estimate of costs associated with this work upon request of the customer;
• Establish and publish a process for a customer to request and install a meter collar adapter; and
• Facilitate the installation of a meter collar adapter by a registered electrical contractor and require that all electrical work be performed by a qualified party such as a master electrician.

     In addition, the act states that the revised commission interconnection rules must allow commission-regulated utilities to require that installation work for a meter collar adapter be performed by the commission-regulated utility, a licensed electrical contractor, or a party approved by the commission-regulated utility if the installation of an approved meter collar adapter requires removal of the meter.

     The act requires cooperative electric associations and customer-generators to comply with the rules adopted by the commission regarding meter collar adapters and with other commission rules regarding production meters.

     Similarly, the act requires municipally owned utilities to:

• Maintain a public list of at least one approved meter collar adapter;
• Have a process for approving a meter collar adapter that is not included in the public list;
• Approve proposed meter collar adapters that meet certain technical requirements;
• If the installation of an approved meter collar adapter requires relocation of the meter enclosure or replacement of the meter housing, provide an estimate of costs associated with this work upon request of the customer; and
• Include a process for a customer to request and install a meter collar adapter.
  
  (Note: This summary applies to this bill as enacted.)