,,ii  #aad? ,,congress  #a/ ,session    
,s4 #abac  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #f1 #bjae ,mr4 ,k+
 introduc$ ! foll[+ bill2 :i* 0 read    
twice & ref]r$ to ! ,committee on ,en]gy
 & ,natural ,res\rces  ,a ,,bill  ,to   
am5d ! ,public ,utility ,regulatory     
,policies ,act ( #aigh & ! ,f$]al ,p[]  
,act to facilitate ! free m>ket =       
di/ribut$ en]gy res\rces4  #a4 ,%ort    
title  ,?is ,act may be cit$ z ! ,free  
,m>ket ,en]gy ,act ( #bjae4  #b4 ,f9d+s 
,congress f9ds t x is 9 ! public        
int]e/-- 7#a7 to enhance p]sonal fre$om 
& national security by re9=c+ ! "r to   
sov]eignty ov] p]sonal en]gy *oices2 &  
7#b7 to enhance ! div]sity ( !          
electricity supply & en]gy indep5d5ce ( 
! ,unit$ ,/ates by ensur+ t !re is a    
free m>ket = di/ribut$ en]gy res\rces by
 provid+ = ! nondiscrim9atory           
int]connection ( di/ribut$ en]gy        
res\rces4  #c4 ,def9ition ( di/ribut$   
en]gy res\rce ,section #c ( ! ,f$]al    
,p[] ,act 7#af ,u4,s4,c4 #gif7 is am5d$ 

by add+ at ! end ! foll[+3  7#cj7       
,di/ribut$ en]gy res\rce ,! t]m         
di/ribut$ en]gy res\rce is a res\rce on 
! electricity di/ribution sy/em t       
includes--  7,a7 di/ribut$ fossil       
g5]ation2  7,b7 r5ewable g5]ation       
7includ+ biomass1 sol> photovoltaics1   
geo!rmal1 & hydrop[]72  7,c7 fuel cells2
  7,d7 comb9$ heat & p[] sy/ems2  7,e7  
en]gy /orage2  7,f7 dem& response2  7,g7
 effici5cy res\rces2  7,h7 microgrids2 &
  7,i7 any comb9ation ( ! res\rces      
describ$ 9 ?is p>agraph4  4  #d4 ,g5]al 
"r to neutrality ( int]connection ,!    
,public ,utility ,regulatory ,policies  
,act ( #aigh is am5d$ by ins]t+ aft]    
section #d 7#af ,u4,s4,c4 #bfjc7 !      
foll[+3  #e4 ,g5]al "r to neutrality (  
int]connection  7a7 ,9 g5]al ,di/ribut$ 
en]gy res\rces 7z def9$ 9 section #c ( !
 ,f$]al ,p[] ,act 7#af ,u4,s4,c4 #gif77 
%all h a g5]al "r ( int]connection "u   
?is ,act4  7b7 ,rates & fees ,all rates 
& fees = int]connection ( di/ribut$     
en]gy res\rces "u ?is ,act1 reg>dless ( 

:e!r ! di/ribut$ en]gy res\rce is a     
qualify+ facility1 %all--  7#a7 be j &  
reasonable2  7#b7 provide = ! #b-way    
b5efit = ! di/ribut$ en]gy res\rce & !  
electricity grid2  7#c7 %all n exce$ !  
actual co/ ( s]vice2 &  7#d7 %all n be  
punitive4  7c7 ,timeframes ,timeframes =
 int]connection ( di/ribut$ en]gy       
res\rces "u ?is ,act1 reg>dless ( :e!r !
 di/ribut$ en]gy res\rce is a qualify+  
facility1 %all be well-def9$1 exp$iti\s1
 & n unduly protract$4  4  #e4 ,en]gy & 
rate treatm5ts = di/ribut$ en]gy        
res\rces ,section #aaa7;d7 ( ! ,public  
,utility ,regulatory ,policies ,act (   
#aigh 7#af ,u4,s4,c4 #bfba7;d77 is am5d$
 by add+ at ! end ! foll[+3  7#bj7      
,di/ribut$ en]gy res\rces ,ea* ,/ate    
regulatory au?ority %all consid] requir+
 t di/ribut$ en]gy res\rces 7z def9$ 9  
section #c ( ! ,f$]al ,p[] ,act 7#af    
,u4,s4,c4 #gif77 be eligible to receive 
j & reasonable en]gy & rate treatm5t =--
  7,a7 "t-(-use pric+1 :i* may acc\nt = 
locational b5efit1 to be provid$ on an  

unbundl$ basis1 aft] acc\nt+ = ! #b-way 
valuation ( "t-(-use rates1 & progress+ 
to real-"t pric+1 =--  7i7 en]gy sold to
 an electric utility2 &  7ii7 en]gy     
pur*as$ f an electric utility2  7,b7    
capacity2  7,c7 en]gy cons]vation2  7,d7
 dem&-side managem5t or dem& response2  
7,e7 peak mon?ly dem&2  7,f7 ! provision
 ( ancill>y s]vices2  7,g7 ! societal   
value ( di/ribut$ en]gy res\rces2 &     
7,h7 any o!r b5efits t ! ,/ate          
regulatory au?ority consid]s to be      
appropriate4  4  #f4 ,qualify+ facility2
 improv$ int]connection /&>ds =         
di/ribut$ en]gy res\rces  7a7 ,def9ition
 ( qualify+ facilities ,section #c ( !  
,f$]al ,p[] ,act 7#af ,u4,s4,c4 #gif7 is
 am5d$--  7#a7 9 p>agraph 7#ag77;,c7--  
7,a7 by ind5t+ appropriately2 &  7,b7 by
 ins]t+ 7includ+ a di/ribut$ en]gy      
res\rce 9 any ,/ate 9 :i* a ,/ate       
regulatory au?ority or nonregulat$      
electric utility det]m9es n to e/abli%  
/&>ds 9 accordance ) p>agraph 7#bj7 (   
section #aaa7;d7 ( ! ,public ,utility   

,regulatory ,policies ,act ( #aigh 7#af 
,u4,s4,c4 #bfba7;d777 be=e t !          
,commission det]m9es2 &  7#b7 9 p>agraph
 7#ah77;,b7-- 7,a7 by ind5t+            
appropriately2 &  7,b7 by ins]t+        
7includ+ a di/ribut$ en]gy res\rce 9 any
 ,/ate 9 :i* a ,/ate regulatory au?ority
 or nonregulat$ electric utility        
det]m9es n to e/abli% /&>ds 9 accordance
 ) p>agraph 7#bj7 ( section #aaa7;d7 ( !
 ,public ,utility ,regulatory ,policies 
,act ( #aigh 7#af ,u4,s4,c4 #bfba7;d777 
be=e t ! ,commission det]m9es4  7b7     
,improv$ int]connection /&>ds =         
di/ribut$ en]gy res\rces ,section       
#aaa7;d7 ( ! ,public ,utility           
,regulatory ,policies ,act ( #aigh 7#af 
,u4,s4,c4 #bfba7;d77 7z am5d$ by section
 #e7 is am5d$ by add+ at ! end ! foll[+3
  7#ba7 ,improv$ int]connections /&>ds =
 di/ribut$ en]gy res\rces ,ea* ,/ate    
regulatory au?ority or nonregulat$      
electric utility1 act+ "u ,/ate au?ority
 9 a ,/ate t has det]m9$ n to e/abli%   
/&>ds "u p>agraph 7#bj71 %all consid]-- 

7,a7 sett+ rates t exce$ ! increm5tal   
co/ ( alt]native electric en]gy =       
pur*ases f any di/ribut$ en]gy res\rce  
7z def9$ 9 section #c ( ! ,f$]al ,p[]   
,act 7#af ,u4,s4,c4 #gif77 t is a       
qualify+ facility = electricity g5]at$1 
dem& r$uc$1 or s]vice provid$ by !      
qualify+ facility int]connect$ "u ?is   
,act1 )--  7i7 ! rates to be e/abli%$ at
 ! full retail rate2 &  7ii7 fix$ mon?ly
 *>ges = resid5tial electricity bills to
 be e/abli%$ at a *>ge ( n m ?an #aj    
doll>s p] mon?1 ) optional reevaluations
 ( ! am\nt ( *>ge to be consid]$ on a   
p]iodic basis2  7,b7 mak+ any di/ribut$ 
en]gy res\rce project exempt f fil+     
requirem5ts ) ! ,commission2  7,c7      
ensur+ t any requirem5ts consid]$ "u ?is
 p>agraph w\ld n affect ! pur*ase       
obligation "u section #baj = di/ribut$  
en]gy res\rce facilities2 &  7,d7       
requir+ t all rates & fees =            
int]connection ( di/ribut$ g5]ation     
facilities--  7i7 %all be j &           
reasonable2  7ii7 %all provide = !      

b5efit ( ! di/ribut$ en]gy res\rce to ! 
electricity grid & b5efit ( !           
electricity grid to ! di/ribut$ en]gy   
res\rce2 &  7iii7 n exce$ ! actual co/ (
 s]vice4  4  #g4 ,designation ( sm>t    
grid coord9ator or di/ribution sy/em    
op]ator ,section #aaa7;d7 ( ! ,public   
,utility ,regulatory ,policies ,act (   
#aigh 7#af ,u4,s4,c4 #bfba7;d77 7z am5d$
 by section #f7;b77 is am5d$ by add+ at 
! end ! foll[+3  7#bb7 ,designation (   
sm>t grid coord9ator or di/ribution     
sy/em op]ator ,ea* ,/ate regulatory     
au?ority %all consid] designat+1 ?r\gh a
 competitive process1 a regulat$        
utility1 o!r p>ty1 or a comb9ation (    
regulat$ utilities & o!r p>ties to be a 
sm>t grid coord9ator or di/ribution     
sy/em op]ator = ! ,/ate4  4  #h4        
,consid]ation ( nontransmission         
alt]natives ,section #aaa7;d7 ( !       
,public ,utility ,regulatory ,policies  
,act ( #aigh 7#af ,u4,s4,c4 #bfba7;d77  
7z am5d$ by section #g7 is am5d$ by add+
 at ! end ! foll[+3  7#bc7              

,nontransmission alt]natives  7,a7 ,9   
g5]al ,ea* ,/ate regulatory au?ority    
%all consid] nontransmission alt]natives
 9 in/ances 9 :i* a regulat$ utility    
proposes transmission projects4  7,b7   
,co/ ,to r$uce ! co/ to ! ratepay] ( a  
pot5tial transmission upgrade1 a        
nontransmission alt]native consid]$ "u  
subp>agraph 7,a71 %all receive ! avoid$ 
co/ ( ! transmission upgrade1 m9us a    
reasonable disc\nt1 z det]m9$ by ! ,/ate
 regulatory au?ority4  7,c7 ,recov]y ,if
 a nontransmission alt]native propos$ "u
 subp>agraph 7,a7 obviates ! ne$ = a    
reliability-bas$ transmission upgrade1 !
 co/ ( ! nontransmission alt]native %all
 be recov]$ f ! ratebase 9 ! same mann] 
z ! transmission upgrade w\ld h be54  4 
#i4 ,compliance  7a7 ,"t limitations    
,section #aab7;b7 ( ! ,public ,utility  
,regulatory ,policies ,act ( #aigh 7#af 
,u4,s4,c4 #bfbb7;b77 is am5d$ by add+ at
 ! end ! foll[+3  7#g7 7,a7 ,n lat] ?an 
#a ye> aft] ! date ( enactm5t ( ?is     
p>agraph1 ea* ,/ate regulatory au?ority 

7) respect to ea* electric utility = :i*
 ! au?ority has ratemak+ au?ority7 & ea*
 nonregulat$ utility %all1 ) respect to 
! /&>ds e/abli%$ by p>agraphs 7#bj71    
7#bb71 & 7#bc7 ( section #aaa7;d7--  7i7
 comm5ce ! consid]ation requir$ "u ^?   
p>agraphs2 or  7ii7 set a he>+ date = ! 
consid]ation4  7,b7 ,n lat] ?an #b ye>s 
aft] ! date ( enactm5t ( ?is p>agraph1  
ea* ,/ate regulatory au?ority 7) respect
 to ea* electric utility = :i* !        
au?ority has ratemak+ au?ority7 & ea*   
nonregulat$ electric utility1 %all1 )   
respect to ! /&>ds e/abli%$ by p>agraphs
 7#bj71 7#bb71 & 7#bc7 ( section        
#aaa7;d7--  7i7 complete ! consid]ation 
"u subp>agraph 7,a72 &  7ii7 make !     
det]m9ation ref]r$ to 9 section #aaa )  
respect to ! /&>ds e/abli%$ by ^?       
p>agraphs4  7#h7 7,a7 ,n lat] ?an #b    
ye>s aft] ! date ( enactm5t ( ?is       
p>agraph1 ea* ,/ate regulatory au?ority 
7) respect to ea* electric utility = :i*
 ! au?ority has ratemak+ au?ority7 & ea*
 nonregulat$ utility %all1 ) respect to 

! /&>ds e/abli%$ by section             
#aaa7;d77#ba7--  7i7 comm5ce !          
consid]ation requir$ "u t p>agraph2 or  
7ii7 set a he>+ date = ! consid]ation4  
7,b7 ,n lat] ?an #c ye>s aft] ! date (  
enactm5t ( ?is p>agraph1 ea* ,/ate      
regulatory au?ority 7) respect to ea*   
electric utility = :i* ! au?ority has   
ratemak+ au?ority7 & ea* nonregulat$    
electric utility1 %all1 ) respect to !  
/&>ds e/abli%$ by section               
#aaa7;d77#ba7--  7i7 complete !         
consid]ation requir$ "u t p>agraph2 &   
7ii7 make ! det]m9ation ref]r$ to 9     
section #aaa ) respect to ! /&>ds       
e/abli%$ by section #aaa7;d77#ba74  4   
7b7 ,failure ,to comply ,section        
#aab7;c7 ( ! ,public ,utility           
,regulatory ,policies ,act ( #aigh 7#af 
,u4,s4,c4 #bfbb7;c77 is am5d$ by add+ at
 ! end ! foll[+3  7#a7 ,9 ! case ( !    
/&>ds e/abli%$ by p>agraphs 7#bj7 ?r\gh 
7#bc7 ( section #aaa7;d71 ! ref]5ce     
conta9$ 9 ?is subsection to ! date (    
enactm5t ( ?is ,act %all be deem$ to be 

a ref]5ce to ! date ( enactm5t ( ^?     
p>agraphs4  4  7c7 ,prior /ate actions  
7#a7 ,9 g5]al ,section #aab ( ! ,public 
,utility ,regulatory ,policies ,act (   
#aigh 7#af ,u4,s4,c4 #bfbb7 is am5d$ by 
add+ at ! end ! foll[+3  7g7 ,prior /ate
 actions ,subsections 7b7 & 7c7 %all n  
apply to a /&>d e/abli%$ "u p>agraphs   
7#bj7 ?r\gh 7#bc7 ( section #aaa7;d7 9 !
 case ( any electric utility 9 a ,/ate  
if1 be=e ! date ( enactm5t ( ?is        
subsection--  7#a7 ! ,/ate has implem5t$
 = ! electric utility ! /&>d 7or a      
comp>able /&>d72  7#b7 ! ,/ate          
regulatory au?ority = ! ,/ate1 or !     
relevant nonregulat$ electric utility1  
has conduct$ a proce$+ to consid]       
implem5tation ( ! /&>d 7or a comp>able  
/&>d7 = ! electric utility2 or  7#c7 !  
,/ate legislature has vot$ on !         
implem5tation ( ! /&>d 7or a comp>able  
/&>d7 = ! electric utility4  4  7#b7    
,cross-ref]5ce ,section #abd ( ! ,public
 ,utility ,regulatory ,policies ,act (  
#aigh 7#af ,u4,s4,c4 #bfcd7 is am5d$ by 

add+ at ! end ! foll[+3 ,9 ! case ( ea* 
/&>d e/abli%$ "u p>agraphs 7#bj7 ?r\gh  
7#bc7 ( section #aaa7;d71 ! ref]5ce     
conta9$ 9 ?is subsection to ! date (    
enactm5t ( ?is ,act %all be deem$ to be 
a ref]5ce to ! date ( enactm5t ( ^?     
p>agraphs44  #aj4 ,effect ( ,act ,no?+ 9
 ?is ,act 7or an am5dm5t made by ?is    
,act7 %all apply to di/ribut$ en]gy     
res\rce contracts 9 effect on ! date (  
enactm5t ( ?is ,act4