Its crunch time for Energize America. As requested, in just over 60 hours, we will deliver our proposed Acts to our sponsor in Congress. So we need help from dkos more than ever.
Below the fold is a new version of the Net Metering Bill (formerly known as the Join the Grid Act). It incorporates changes suggested by the community in comments to my diary on the previous version.
This will be the last chance for the dkos community to review this Act before it heads to Congress.
Also, we're going to be changing the title one final time.. please vote for your favorite title below.
Changes from last version: There have been numerous changes from the last versionin response to 1) excellent suggestions in the comments, and 2) superb editing by our editors. I strongly appreciate all the suggestions-- unfortunately, I wasn't able to take all of them (that would have been impossible, as they often contradicted each other). But please continue to discuss, suggest and criticize, as this is extremely valuable to us.
Several suggestions concerned areas where, I think, reasonable people can disagree. In the comments to this diary, I will explain why I wrote things the way I did. If you think I erred, please let me know. Also, if you think I simply ignored your suggestion, this was more likely to be an oversight than a deliberate choice-- please remind me (and accept my apology).
Name Change Poll
This was originally titled the Net Metering Act, but we've decided we're not happy with that. We're currently considering new names, and I've listed four below (in alphabetical order), a few of which came from the comments of yesterday's diary.
Briefly, the name is part, possibly the most important part, of how we want to frame this Act. In our framing, we are not trying to appeal to a progressive audience-- they already strongly support Net Metering, and many want a stronger act. Instead, we are trying to come up a frame that makes this Act impossible to vote against-- even for Republicans.
Here are the rules of the poll:
-Please read the Act before casting your vote.
-If fewer than 30 votes are cast, the poll will not be used.
-If one choice gets two thirds of the votes, that will be the name (almost certainly).
-If none gets two thirds, then strong consideration will be given to whichever gets a plurality.
Obviously, feel free to explain in the comments why you voted as you did. Also, feel free to suggest other names in the comments (that's part of why I'm leaving wiggle room above.)
Text of Act Summary
The Join the Grid Act of 2007
Diversify and distribute electricity generation to enhance energy security
Objectives:
To establish a market for electricity generated on-site by homeowners, small businesses, farms and non-profits, or their agents, by providing for the use of Net Metering and removing regulatory and other barriers that prevent small-scale electrical entrepreneurs from selling electricity to their neighbors.
To promote conservation by establishing standards for Smart Meters.
Description:
This Act will require utilities to provide Net Meters to home owners, small businesses and non-profits that have an account with the utility, and generate some or all of their own electricity. (These entities will be called "electrical entrepreneurs.") Entrepreneurs will be debited for electricity they use, and credited for electricity they produce. At the end of each month, the entrepreneur will be billed (if his balance is negative) or paid (if his balance exceeds $100).
The rates may not depend on whether the customer participates in Net Metering. They may depend on time of day, instantaneous balance of supply and demand, or other factors. Utilities will buy the first megawatt per month at 10% less than the retail rate charged to customers. They will buy the next megawatt at 20% less than the retail rate, the third at 30%, etc. However, the price shall not be less than the wholesale rate. (The physical capacity of the grid may restrict the amount of power that electrical entrepreneurs can sell)
Green attributes (including Renewable Energy Credits, etc) will initially belong to the electrical entrepreneur. The entrepreneur may opt to sell them to the utility at a mutually agreed upon price. If the entrepreneur does not opt to do so, the Green attributes will be extinguished.
This Act will set safety, interoperability and other standards for Net Meters. It will also set standards for a Net Meter that also functions as a Smart Meter. The standards will assure interoperability, and protect the privacy of customers. However, privacy restrictions shall not prevent utilities from sharing aggregated customer data that does not reveal individual usage patterns. Additionally, the Act will provide that utilities may not penalize entrepreneurs for installing Smart meters that meet this standard.
A Proven Model:
Forty states have Net Metering bills in place, although program specifics vary greatly, and most are considerably weaker than this Act. This Act builds on the successes of other states programs.
Benefits:
Cost savings for utilities: First, Utilities buy power from a wide variety of different sources whose prices vary greatly. This Act will allow utilities to buy less electricity from their most expensive sources, and more from entrepreneurs (who will be paid at lesser rates).
Second, electricity generated by entrepreneurs will usually be used either by the entrepreneur himself, or by consumers located a short distance away. This places much less strain on the grid than transporting it hundreds of miles and repeatedly transforming it. Electrical entrepreneurs will be performing services (distribution and much of transmission) that would otherwise be performed by the utility. Nevertheless, the utility may in some cases be reimbursed for services that it does not provide.
Third, it is likely that utilities will be able to purchase green credits from electrical entrepreneurs for a fraction of their actual worth, because they are the only possible buyer.
Diversification of energy sources: The Act will diversify energy sources by promoting more small-scale energy sources.. This reduces the risk of disruption in the event of one source being incapacitated.
Reduction of fossil fuel use: By encouraging small-scale power generators, which tend to use solar power, wind power, hydro-electric power and biomass, the Act will lessen the need for fossil fuel power generation.
Reduce reliance on grid: The Act will increase the number of people who can generate some or all of their electricity in the event of man-made and natural grid failures.
Blackout reduction: Some utilities have resorted to rolling brownouts or blackouts to manage demand on hot, sunny days—precisely the time when solar power generation peaks. Because this Act encourages solar power generation, and generation in general, it will better balance electricity supply with demand, and so reduce planned and unplanned demand-driven brownouts and blackouts.
Promoting conservation: This Act will facilitate the introduction of Smart Meters, which have been shown to promote energy conservation, reducing electric bills.
Environmental benefits: This Act will have favorable environmental consequences as most distributed energy generation sources are less polluting than existing generation sources such as coal, natural gas, and nuclear, and Smart Meters encourage conservation.
Investment:
No expenditure of funds is required. Creating new markets may enhance tax revenues, although the effect will likely be small.
Key messages:
- Decentralizes and diversifies energy sources for greater reliability and security
- Deregulates to create a free and fair electricity market and a new class of electrical entrepreneurs
- Creates incentives for utilities to support green electricity generation
- Reduces brownouts/blackouts
- Promotes conservation by standardizing Smart Meters