,,ii  #aae? ,,congress  #b;d ,session   
,s4 #bggf  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,april #bf1 #bjah,mr4  
,b>rasso 7= himself & ,mr4 ,ris*7       
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on ,en]gy
 & ,natural ,res\rces  ,a ,,bill  ,to   
mod]nize ! ,public ,utility ,regulatory 
,policies ,act ( #aigh1 & = o!r         
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,updat+ ,pur*ase           
,obligations to ,deploy ,af=dable       
,res\rces to ,en]gy ,m>kets ,"u ,,purpa 
,act or ! ,,update ,,purpa ,act4  #b4   
,am5dm5ts to ,,purpa  7a7 ,cog5]ation & 
small p[] production rules ,section #baj
 ( ! ,public ,utility ,regulatory       
,policies ,act ( #aigh 7#af ,u4,s4,c4   
#hbd;a-#c7 is am5d$ by /rik+ subsection 
7a7 & ins]t+ ! foll[+3  7a7 ,cog5]ation 
& small p[] production rules  7#a7 ,9   
g5]al ,n lat] ?an #a ye> aft] ! date (  
enactm5t ( ?is ,act1 ! ,commission %all 
prescribe1 & f "t to "t !reaft] revise1 
rules z ! ,commission det]m9es necess>y 

to enc\rage cog5]ation & small p[]      
production1 & to enc\rage geo!rmal small
 p[] production facilities ( n m ?an #hj
 megawatts capacity4  7#b7 ,requirem5ts 
,! rules "u p>agraph 7#a7-- 7,a7 %all   
require electric utilities to (f]--  7i7
 to sell electric en]gy to qualify+     
cog5]ation facilities & qualify+ small  
p[] production facilities2 &  7ii7 to   
pur*ase electric en]gy f facilities     
describ$ 9 clause 7i72  7,b7 %all be    
prescrib$ aft] consultation )           
repres5tatives ( ,f$]al & ,/ate         
regulatory ag5cies hav+ ratemak+        
au?ority = electric utilities1 & aft]   
public notice & a reasonable opportunity
 = int]e/$ p]sons 7includ+ ,f$]al &     
,/ate ag5cies7 to submit oral z well z  
writt5 data1 views1 & argum5ts2  7,c7   
%all include provisions requir+-- 7i7   
m9imum reliability ( qualify+ cog5]ation
 facilities & qualify+ small p[]        
production facilities 7includ+          
reliability ( ^? facilities dur+        
em]g5cies72  7ii7 qualify+ facilities to

 be responsible = any co/s ne$$ to hold 
electric utility cu/om]s f9ancially     
indiff]5t to ! co/ ( enabl+ ! firm      
deliv]y capability ( ! qualify+         
facility1 includ+ ! co/ ( any facilities
 or network upgrades associat$ ) !      
int]connection s]vice ( ! qualify+      
facility & transmission s]vice          
arrangem5ts ( ! qualify+ facility to    
deliv] ! p[] ( ! qualify+ facility to   
electric utility cu/om]s2  7iii7        
curtailm5t ( qualify+ facilities z !    
,commission det]m9es necess>y to ensure 
res\rce adequacy2 &  7iv7 reliability ( 
electric en]gy s]vice to be available to
 facilities describ$ 9 clause 7i7 f     
electric utilities dur+ em]g5cies2 &    
7,d7 may n au?orize a qualify+          
cog5]ation facility or qualify+ small   
p[] production facility to make any sale
 = purposes o!r ?an resale4  4  7b7     
,rates = pur*ases by electric utilities 
,section #baj7;b7 ( ! ,public ,utility  
,regulatory ,policies ,act ( #aigh 7#af 
,u4,s4,c4 #hbd;a-#c7;b77 is am5d$--     

7#a7 9 p>agraph 7#a71 by /rik+ 1 & &    
ins]t+ 2 &2  7#b7 by r$esignat+         
p>agraphs 7#a7 & 7#b7 z subp>agraphs    
7,a7 & 7,b71 respectively1 & ind5t+ !   
subp>agraphs appropriately2  7#c7 9 !   
matt] prec$+ subp>agraph 7,a7 7z s      
r$esignat$71 by /rik+ ,! rules prescrib$
 "u subsection 7a7 %all insure & ins]t+ 
! foll[+3  7#a7 ,9 g5]al ,subject to    
p>agraph 7#b71 ! rules prescrib$ "u     
subsection 7a7 %all ensure  2 &  7#d7 9 
! undesignat$ matt] foll[+ subp>agraph  
7,b7 ( p>agraph 7#a7 7z s r$esignat$71  
by /rik+ ,no su* rule & ins]t+ ! foll[+3
  7#b7 ,limitation ,no rule  4  7c7     
,t]m9ation ( m&atory pur*ase requirem5ts
 ,section #baj7m77#a7 ( ! ,public       
,utility ,regulatory ,policies ,act (   
#aigh 7#af ,u4,s4,c4 #hbd;a-#c7m77#a77  
is am5d$--  7#a7 9 subp>agraph 7,b77ii71
 by /rik+ or at ! end2 &  7#b7 by /rik+ 
subp>agraph 7,c7 & ins]t+ ! foll[+3     
7,c7 any indep5d5tly adm9i/]$1 volunt>y1
 auction-bas$ en]gy m>ket 7includ+ an   
en]gy imbalance m>ket71 reg>dless (     

:e!r--  7i7 an applicable electric      
utility p>ticipat+ 9 su* a m>ket is a   
memb] ( a regional transmission         
organization or an indep5d5t sy/em      
op]ator2 or  7ii7 su* a m>ket has a     
gov]nance /ructure & op]ation t is :olly
 sep>ate & autonom\s f a regional       
transmission organization or an         
indep5d5t sy/em op]ator2 or  7,d7       
:olesale m>kets t are ( comp>able       
competitive quality to m>kets describ$ 9
 subp>agraph 7,a71 7,b71 or 7,c74  4    
7d7 ,nondiscrim9atory access ,section   
#baj7m7 ( ! ,public ,utility ,regulatory
 ,policies ,act ( #aigh 7#af ,u4,s4,c4  
#hbd;a-#c7m77 is am5d$ by add+ at ! end 
! foll[+3  7#h7 ,nondiscrim9atory access
 ,= purposes ( ?is subsection1 a        
qualify+ small p[] production facility )
 an in/all$ g5]ation capacity ( #b4e    
megawatts or great] is presum$ to h     
nondiscrim9atory access to !            
transmission & int]connection s]vices & 
:olesale m>kets describ$ 9 subp>agraphs 
7,a71 7,b71 7,c71 & 7,d7 ( p>agraph     

7#a74  4  7e7 ,recognition ( ,/ate or   
local det]m9ations ,section #baj7m7 ( ! 
,public ,utility ,regulatory ,policies  
,act ( #aigh 7#af ,u4,s4,c4             
#hbd;a-#c7m77 7z am5d$ by subsection    
7d77 is am5d$ by add+ at ! end ! foll[+3
  7#i7 ,/ate or local det]m9ation       
,effective beg9n+ on ! date ( enactm5t (
 ?is p>agraph1 no electric utility %all 
be requir$ to ent] into a new contract  
or obligation to pur*ase electric en]gy 
f a qualify+ small p[] production       
facility "u ?is section1 if !           
appropriate ,/ate regulatory ag5cy or   
non-regulat$ electric utility det]m9es  
t--  7,a7 ! electric utility has no ne$ 
to pur*ase electric en]gy f ! qualify+  
small p[] production facility 9 !       
quantities (f]$ )9 ! timeframe propos$  
by ! qualify+ small p[] production      
facility to meet any obligation to s]ve 
a cu/om]1 consi/5t ) ! ne$s = electric  
en]gy & ! timeframe = ^? ne$s1 z        
specifi$ 9 ! integrat$ res\rce plan (1  
or o!r applicable demon/ration ( ne$ by1

 ! electric utility2 or  7,b7 ! electric
 utility employs integrat$ res\rce      
plann+ or ano!r applicable demon/ration 
( ne$ & conducts a competitive res\rce  
procurem5t process = long-t]m en]gy     
res\rces t provides an opportunity =    
qualify+ small p[] production facilities
 to supply electric en]gy to ! electric 
utility 9 accordance ) ! integrat$      
res\rce plan (1 or o!r applicable       
demon/ration ( ne$ by1 ! electric       
utility4  4  7f7 ,te*nical corrections  
,section #baj ( ! ,public ,utility      
,regulatory ,policies ,act ( #aigh 7#af 
,u4,s4,c4 #hbd;a-#c7 is am5d$-- 7#a7 9  
subsection 7h77#b77;,a77i71 by /rik+    
subsection 7f7 or & ins]t+ subsection   
7f72 or2 &  7#b7 9 subsection 7k71 by   
add+ a p]iod at ! end4  #c4 ,f$]al      
,en]gy ,regulatory ,commission          
regulations  7a7 ,requir$ am5dm5ts      
relat+ to location ( small p[]          
production facilities  7#a7 ,9 g5]al ,n 
lat] ?an #ahj days aft] ! date (        
enactm5t ( ?is ,act1 ! ,f$]al ,en]gy    

,regulatory ,commission 7ref]r$ to 9 ?is
 section z ! ,commission7 %all publi% 9 
! ,f$]al ,regi/] a f9al rule to am5d1 9 
accordance ) ?is section1 ! regulations 
( ! ,commission promulgat$ to c>ry out  
section #c7ag77;,a77ii7 ( ! ,f$]al ,p[] 
,act 7#af ,u4,s4,c4 #gif7ag77;,a77ii77  
relat+ to ! me?od us$ by ! ,commission  
to det]m9e :e!r a facility is consid]$  
to be locat$ at ! same site z a facility
 = :i* qualification is s\ght = !       
purpose ( calculat+ p[] production      
capacity4  7#b7 ,rebuttable presumption 
7,a7 ,9 g5]al ,! am5dm5ts to regulations
 requir$ by p>agraph 7#a7 %all e/abli% a
 rebuttable presumption t--  7i7        
facilities sep>at$ by a di/ance ( #a    
mile or m %all n be consid]$ to be      
locat$ at ! same site2 &  7ii7          
facilities sep>at$ by a di/ance ( less  
?an #a mile %all be consid]$ to be      
locat$ at ! same site4  7,b7 ,rebutt+   
presumption ,! ,commission %all all[ any
 p]son 7z def9$ 9 section #che4ajb (    
title #ah1 ,code ( ,f$]al ,regulations  

7z 9 effect on ! date ( enactm5t ( ?is  
,act77 to rebut ! presumption describ$ 9
 subp>agraph 7,a74  7#c7 ,factors =     
consid]ation  7,a7 ,9 g5]al ,! am5dm5ts 
to regulations requir$ by p>agraph 7#a7 
%all require t1 9 det]m9+ :e!r a        
facility is consid]$ to be locat$ at !  
same site z a facility = :i*            
qualification is s\ght1 ! ,commission   
%all take into consid]ation1 to !       
maximum ext5t practicable1 ! foll[+     
factors3  7i7 ,! ext5t to :i* ! own]s or
 op]ators ( ! facilities are-- 7,i7     
affiliates or associate companies 7z ^? 
t]ms are def9$ 9 section #abfb ( !      
,public ,utility ,hold+ ,company ,act ( 
#bjje 7#db ,u4,s4,c4 #afdea772 or       
7,,ii7 "u ! control ( ! same p]son1     
subject to subp>agraph 7,b74  7ii7 ,!   
ext5t to :i* ! facilities h be5 treat$ z
 a s+le project = purposes ( o!r        
regulatory fil+s or applications4  7iii7
 ,:e!r ! facilities use ! same en]gy    
res\rce4  7iv7 ,:e!r ! facilities--     
7,i7 h a common g5]ator lead l9e2 or    

7,,ii7 connect at ! same or ne>by       
int]connection po9ts or sub/ations4  7v7
 ,! ext5t to :i* ! own]s or op]ators ( !
 facilities h a common l& lease or l&   
rights ) respect to l& on :i* !         
facilities are locat$4  7vi7 ,! ext5t to
 :i* !re is common f9anc+ ) respect to !
 facilities4  7vii7 ,! ext5t to :i* !   
facilities are "p ( a common developm5t 
plan or p]mitt+ ef=t1 reg>dless ( :e!r !
 int]connection ( ! facilities occurs at
 sep>ate po9ts4  7,b7 ,control ,=       
purposes ( subp>agraph 7,a77i77,,ii71 ! 
,commission %all consid] ! own] or      
op]ator ( a facility to be "u ! control 
( a p]son if--  7i7 ! p]son directly or 
indirectly owns1 controls1 or holds1 )  
p[] to vote1 #aj p]c5t or m ( ! out/&+  
vot+ securities ( ! own] or op]ator2 or 
7ii7 ! ,commission det]m9es1 aft] notice
 & opportunity = he>+1 t ! p]son        
ex]cises1 directly or indirectly 7alone 
or pursuant to an arrangem5t or und]/&+ 
) "o or m p]sons71 a controll+ influ5ce 
ov] ! managem5t ( ! own] or op]ator4    

7b7 ,prohibition on requir+ m9imum t]m =
 c]ta9 contracts ,! ,commission %all n  
issue any regulation1 guidance1 or ord] 
t requires a m9imum contract t]m = any  
p[] pur*ase contract betwe5--  7#a7 an  
electric utility 7z def9$ 9 section #c (
 ! ,public ,utility ,regulatory         
,policies ,act ( #aigh 7#af ,u4,s4,c4   
#bfjb772 &  7#b7 a qualify+ small p[]   
production facility 7z def9$ 9 section  
#c ( ! ,f$]al ,p[] ,act 7#af ,u4,s4,c4  
#gif774  7c7 ,requir$ am5dm5t relat+ to 
legally en=ceable obligations ,n lat]   
?an #ahj days aft] ! date ( enactm5t (  
?is ,act1 ! ,commission %all publi% 9 ! 
,f$]al ,regi/] a f9al rule to am5d !    
regulation conta9$ 9 section            
#bib4cjd7;d77#b7 ( title #ah1 ,code (   
,f$]al ,regulations 7z 9 effect on !    
date ( enactm5t ( ?is ,act71 to provide 
t a legally en=ceable obligation = !    
deliv]y ( electric en]gy or capacity f a
 qualify+ small p[] production facility 
to an electric utility %all n require   
any electric utility to pur*ase electric

 en]gy or capacity f a qualify+ small   
p[] production facility at a rate t     
exce$s ! increm5tal co/ to ! electric   
utility ( alt]native electric en]gy or  
capacity1 z calculat$ at ! "t ( deliv]y 
( ! electric en]gy or capacity4