REFERENCE TITLE: energy improvements; on-bill repayments; utilities

State of Arizona

Senate

Fifty-fifth Legislature

First Regular Session

2021

SB 1475

Introduced by

Senators Engel: Bowie, Contreras, Gonzales, Peshlakai; Representative Rodriguez

AN ACT

Amending Title 40, chapter 2, article 1, Arizona Revised Statutes, by adding section 40-213; relating to public service corporations.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 40, chapter 2, article 1, Arizona Revised Statutes, is amended by adding section 40-213, to read:

START_STATUTE40-213. Energy improvements; on-bill repayment programs; rental properties; requirements; definitions

A. A public service corporation or public power entity with at least two hundred fifty thousand service connections in this state shall develop and implement one or more on-bill repayment programs for eligible energy efficiency, renewable energy, distributed generation, energy storage or demand response improvements.

B. A public service corporation may not implement an on-bill repayment program without the express approval of the commission.  The commission shall supervise the on-bill repayment program to ensure that the program is administered in compliance with the terms approved by the commission.

C. The governing body of a public power entity shall adopt terms that are substantially equivalent to the terms approved by the commission for public service corporations pursuant to subsection D of this section.

D. In approving an on-bill repayment program, the commission shall consider whether the program contains appropriate rules and criteria including all of the following:

1. Eligibility criteria for the types of energy improvements and technologies that would be financed by the program. The commission may include nonenergy reducing improvements as an eligible improvement for financing if the commission deems this inclusion appropriate.

2. Rules prohibiting the unauthorized removal from the rental property of an on-bill repayment improvement.

3. Rules for project inspection and verification services to ensure the cost-effectiveness of the program.

4. Requirements regarding the investment quality and performance of the financing instruments for the program.

5. Consumer protections for low-income residential customers, including protections that prevent increases in the number of service terminations, a loan loss reserve, bill neutrality, prepayment options and other mechanisms deemed appropriate by the commission.

E. For the purposes of this section:

1. "On-bill repayment program" means a program, which may include one or more pilot programs, that enables financing of eligible energy improvements for rental properties to be repaid through on-bill repayment charges to be associated with the same utility account or accounts where savings are anticipated to be realized as a result of the improvements.

2. "Public power entity" has the same meaning prescribed in section 30-801.

Sec. 2. Effective date

This act is effective from and after December 31, 2021.