,,ii #aadth ,,congress #ast ,session ,s4 #bjjc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,august #f1 #bjae ,mr4 ,king introduced the following bill2 which was read twice and referred to the ,committee on ,energy and ,natural ,resources ,a ,,bill ,to facilitate the free market for distributed energy resources4 #a4 ,short title ,this ,act may be cited as the ,free ,market ,energy ,act4 #b4 ,definition of distributed energy resource ,section #c of the ,federal ,power ,act 7#af ,u4,s4,c4 #gif7 is amended by adding at the end the following3 7#cj7 ,distributed energy resource ,the term distributed energy resource means a resource1 technology1 or service interconnected to the electricity distribution system that generates1 manages1 or reduces energy use4 4 #c4 ,general right to neutrality of interconnection ,the ,public ,utility ,regulatory ,policies ,act of #aigh is amended by inserting after section #d 7#af ,u4,s4,c4 #bfjc7 the following3 #e4 ,general right to neutrality of interconnection 7a7 ,in general ,distributed energy resources 7as defined in section #c of the ,federal ,power ,act 7#af ,u4,s4,c4 #gif77 shall have a general right of interconnection under this ,act4 7b7 ,rates and fees ,states shall ensure that electric distribution grid operators adopt standards1 conditions1 and requirements for rates and fees for interconnection of distributed energy resources under this ,act1 that-- 7#a7 are just and reasonable2 7#b7 provide for the #b-way benefit for the distributed energy resource and the electricity grid2 and 7#c7 shall not be punitive4 7c7 ,timeframes 7#a7 ,in general ,timeframes for interconnection of distributed energy resources under this ,act shall be well-defined1 expeditious1 and not unduly protracted4 7#b7 ,delays or denial ,an interconnection of distributed energy resources under this ,act shall not be delayed or denied unless the electric utility demonstrates that the interconnection is unsafe or impracticable4 4 #d4 ,energy and rate treatments for distributed energy resources ,section #aaa7;d7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfba7;d77 is amended by adding at the end the following3 7#bj7 ,distributed energy resources 7,a7 ,in general ,if a ,state regulatory authority considers1 through a rate proceeding or another mechanism 7such as consideration of fixed or minimum charges71 modifying the treatment of net energy metering customers1 the ,state regulatory authority shall consider requiring that distributed energy resources 7as defined in section #c of the ,federal ,power ,act 7#af ,u4,s4,c4 #gif77 be eligible to receive just and reasonable energy and rate treatment using dynamic pricing1 which may account for locational benefit1 to be provided on an unbundled basis1 after accounting for the #b-way valuation of dynamic rates1 for services provided to or provided by the grid1 including the considerations with respect to the use of dynamic pricing described in subparagraph 7,b74 7,b7 ,considerations ,the considerations for the use of dynamic pricing referred to in subparagraph 7,a7 include-- 7i7 7,i7 pricing for energy sold to an electric utility2 and 7,,ii7 pricing for energy purchased from an electric utility2 7ii7 capacity2 7iii7 the provision of ancillary services2 7iv7 the societal value of distributed energy resources2 7v7 transmission and distribution losses2 and 7vi7 any other benefits that the ,state regulatory authority considers to be appropriate4 4 #e4 ,consideration of nontransmission alternatives ,section #aaa7;d7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfba7;d77 7as amended by section #d7 is amended by adding at the end the following3 7#ba7 ,nontransmission alternatives 7,a7 ,in general ,each ,state regulatory authority or applicable ,regional ,transmission ,organization or ,independent ,system ,operator shall consider nontransmission alternatives in instances in which an entity proposes transmission projects seeking cost-of-service rate recovery4 7,b7 ,cost ,to reduce the cost to the ratepayer of a potential transmission upgrade1 a nontransmission alternative considered under subparagraph 7,a71 the cost of the nontransmission alternative shall be recovered from the ratebase or regional recovery mechanism in the same manner as the transmission upgrade would have been4 4 #f4 ,prior state actions 7a7 ,in general ,section #aab of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfbb7 is amended by adding at the end the following3 7g7 ,prior state actions ,subsections 7b7 and 7c7 shall not apply to a standard established under paragraphs 7#bj7 and 7#ba7 of section #aaa7;d7 in the case of any electric utility in a ,state if1 before the date of enactment of this subsection-- 7#a7 the ,state has implemented for the electric utility the standard 7or a comparable standard72 7#b7 the ,state regulatory authority for the ,state1 or the relevant nonregulated electric utility1 has conducted a proceeding to consider implementation of the standard 7or a comparable standard7 for the electric utility2 or 7#c7 the ,state legislature has voted on the implementation of the standard 7or a comparable standard7 for the electric utility4 4 7b7 ,cross-,reference ,section #abd of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfcd7 is amended by adding at the end the following3 ,in the case of each standard established under paragraphs 7#bj7 and 7#ba7 of section #aaa7;d71 the reference contained in this subsection to the date of enactment of this ,act shall be deemed to be a reference to the date of enactment of those paragraphs44 #g4 ,effect ,nothing in this ,act 7or an amendment made by this ,act7 shall apply to distributed energy resource contracts in effect on the date of enactment of this ,act4