"NEW SECTION.  Sec. 1   The legislature finds it is in the public interest to adopt this chapter to simplify the process of interconnecting distributed generation facilities that will be used by customers, including net metered customers. The legislature recognizes that interconnection of distributed generation facilities involves technical, engineering, operational, and safety issues. This chapter is intended to both identify a class of distributed generators that can be interconnected with ease and expedition as well as standard procedures to be used for ordinary interconnections by all electric utilities.

NEW SECTION.  Sec. 2   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Applicant" means a person who has filed an application to interconnect a customer-generator facility to an electric distribution system.
     (2) "Application" means the standard application forms developed by the group under section 7 of this act.
     (3) "Commission" means the utilities and transportation commission.
     (4) "Consumer-owned utility" means a municipal electric utility formed under Title 35 RCW, a public utility district formed under Title 54 RCW, an irrigation district formed under chapter 87.03 RCW, a cooperative formed under chapter 23.86 RCW, or a mutual corporation or association formed under chapter 24.06 RCW, that is engaged in the business of distributing electricity to more than one retail electric customer in the state.
     (5) "Customer-generator" means a residential, commercial, or industrial customer that generates electricity, including but not limited to a customer-generator as defined in RCW 80.60.010.
     (6) "Customer-generator facility" means the equipment used by a customer-generator to generate, manage, and monitor electricity. A customer-generator facility includes an electric generator and/or an equipment package.
     (7) "Electric distribution system" means the infrastructure constructed and maintained by an electric utility to deliver electric service to end-users.
     (8) "Electric utility" means a consumer-owned or investor-owned utility.
     (9) "Equipment package" means a group of components connecting an electric generator with an electric distribution system, and includes all interface equipment including switchgear, inverters, or other interface devices. An equipment package may include an integrated generator or electric source.
     (10) "Fault current" means electrical current that flows through a circuit and is produced by an electrical fault, such as single-phase to ground, double-phase to ground, three-phase to ground, phase-to-phase, and three-phase. A fault current is several times larger in magnitude and a different phase angle than the current that normally flows through a circuit.
     (11) "Good utility practice" means any of the practices, methods, and acts engaged in or approved by a significant portion of the electric industry, or any of the practices, methods, and acts that, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety, and expedition. "Good utility practice" is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region.
     (12) "Governing body" means the council of a city or town, the commissioners of an irrigation district, municipal electric utility, or public utility district, or the board of directors of an electric cooperative or mutual association.
     (13) "Group" means the interconnection technical advisory group established under section 6 of this act.
     (14) "Interconnection agreement" means an agreement between a customer-generator and an electric utility that governs the connection of the customer-generator facility to the electric distribution system, as well as the ongoing operation of the customer-generator facility after it is connected to the system.
     (15) "Investor-owned utility" means a company owned by investors that meets the definition of electrical company in RCW 80.04.010 and is engaged in distributing electricity to more than one retail electric customer in the state.
     (16) "Minor system modifications" include activities such as changing the fuse in a fuse holder cut-out, changing the settings on a circuit recloser, and other activities that usually entail less than four hours of work and one thousand dollars in materials.
     (17) "Point of common coupling" means the point where the electrical conductors of the distribution system are connected to a customer's and where any transfer of electric power between the customer and the distribution system takes place.
     (18) "Spot network" means a type of electric distribution system that uses two or more inter-tied transformers to supply an electrical network circuit. A spot network is generally used to supply power to a single customer or a small group of customers.
     (19) "Standard technical requirements" means technical, engineering, operational, and safety requirements for interconnecting distributed generation facilities established under section 7 of this act.

Sec. 3   RCW 80.60.010 and 2000 c 158 s 1 are each amended to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly indicates otherwise.
     (1) "Commission" means the utilities and transportation commission.
     (2) "Customer-generator" means a user of a net metering system.
     (3) "Electrical company" means a company owned by investors that meets the definition of RCW 80.04.010.
     (4) "Electric cooperative" means a cooperative or association organized under chapter 23.86 or 24.06 RCW.
     (5) "Electric utility" means any electrical company, public utility district, irrigation district, port district, electric cooperative, or municipal electric utility that is engaged in the business of distributing electricity to retail electric customers in the state.
     (6) "Irrigation district" means an irrigation district under chapter 87.03 RCW.
     (7) "Municipal electric utility" means a city or town that owns or operates an electric utility authorized by chapter 35.92 RCW.
     (8) "Net metering" means measuring the difference between the electricity supplied by an electric utility and the electricity generated by a customer-generator that is fed back to the electric utility over the applicable billing period.
     (9) "Net metering system" means a fuel cell or a facility for the production of electrical energy that:
     (a) Uses as its fuel either solar, wind, or hydropower;
     (b) Has a generating capacity of not more than ((twenty-five)) one hundred kilowatts;
     (c) Is located on the customer-generator's premises;
     (d) Operates in parallel with the electric utility's transmission and distribution facilities; and
     (e) Is intended primarily to offset part or all of the customer-generator's requirements for electricity.
     (10) "Port district" means a port district within which an industrial development district has been established as authorized by Title 53 RCW.
     (11) "Public utility district" means a district authorized by chapter 54.04 RCW.

Sec. 4   RCW 80.60.020 and 2000 c 158 s 2 are each amended to read as follows:
     An electric utility:
     (1) Shall offer to make net metering available to eligible customers-generators on a first-come, first-served basis until the cumulative generating capacity of net metering systems equals ((0.1)) one percent of the utility's peak demand during 1996, of which not less than ((0.05)) 0.5 percent shall be attributable to net metering systems that use as its fuel either solar, wind, or hydropower;
     (2) Shall allow net metering systems to be interconnected using a standard kilowatt-hour meter capable of registering the flow of electricity in two directions, unless the commission, in the case of an electrical company, or the appropriate governing body, in the case of other electric utilities, determines, after appropriate notice and opportunity for comment:
     (a) That the use of additional metering equipment to monitor the flow of electricity in each direction is necessary and appropriate for the interconnection of net metering systems, after taking into account the benefits and costs of purchasing and installing additional metering equipment; and
     (b) How the cost of purchasing and installing an additional meter is to be allocated between the customer-generator and the utility;
     (3) Shall charge the customer-generator a minimum monthly fee that is the same as other customers of the electric utility in the same rate class, but shall not charge the customer-generator any additional standby, capacity, interconnection, or other fee or charge unless the commission, in the case of an electrical company, or the appropriate governing body, in the case of other electric utilities, determines, after appropriate notice and opportunity for comment that:
     (a) The electric utility will incur direct costs associated with interconnecting or administering net metering systems that exceed any offsetting benefits associated with these systems; and
     (b) Public policy is best served by imposing these costs on the customer-generator rather than allocating these costs among the utility's entire customer base.

Sec. 5   RCW 80.60.030 and 1998 c 318 s 4 are each amended to read as follows:
     Consistent with the other provisions of this chapter, the net energy measurement must be calculated in the following manner:
     (1) The electric utility shall measure the net electricity produced or consumed during the billing period, in accordance with normal metering practices.
     (2) If the electricity supplied by the electric utility exceeds the electricity generated by the customer-generator and fed back to the electric utility during the billing period, the customer-generator shall be billed for the net electricity supplied by the electric utility, in accordance with normal metering practices.
     (3) If electricity generated by the customer-generator exceeds the electricity supplied by the electric utility, the customer-generator:
     (a) Shall be billed for the appropriate customer charges for that billing period, in accordance with RCW 80.60.020; and
     (b) Shall be credited for the excess kilowatt-hours generated during the billing period, with this kilowatt-hour credit appearing on the bill for the following billing period.
     ((At the beginning)) On April 30th of each calendar year, any remaining unused kilowatt-hour credit accumulated during the previous year shall be granted to the electric utility, without any compensation to the customer-generator.

NEW SECTION.  Sec. 6   (1) There is hereby created the interconnection technical advisory group.
     (2) Membership of the group shall consist of one representative from each of the investor-owned utilities in the state, one representative from a public utility district in the state, one representative from an electric cooperative in the state, and one representative from a municipal utility in the state.
     (3) The group shall elect a chair from among its members.
     (4) Additional nonvoting ex officio members may participate at no cost to the state.
     (5) The representative from a public utility district, an electric cooperative in the state, and a municipal utility in the state, shall be appointed by the respective statewide associations for those groups.
     (6) Members of the group shall serve without compensation.

NEW SECTION.  Sec. 7   (1) The group must review and study technical, engineering, operational, safety, and procedural issues related to interconnecting distributed generation facilities at each of the levels established under section 8 of this act.
     (2) By January 1, 2006, the group must establish, by majority agreement, standard technical requirements and standard application forms for interconnection at the simplified and expedited levels established under section 8 of this act and must submit standard technical requirements and standard application forms to the commission, to the governing body of each consumer-owned utility, and to the appropriate committees of the legislature.
     (3) By July 1, 2006, the group must establish majority agreement on standard technical requirements and standard application forms for interconnection at the intermediate and standard levels established under section 8 of this act and must submit standard technical requirements and standard application forms to the commission, to the governing body of each consumer-owned utility, and to the appropriate committees of the legislature.
     (4) Within one hundred twenty days of receiving standard technical requirements and standard application forms from the group, the commission and the governing body of each consumer-owned utility shall adopt rules establishing standard technical requirements and standard application forms. The adopted rules shall be substantially consistent with standard technical requirements and standard application forms submitted by the group.
     (5) Within thirty days of adopting standard technical requirements and standard application forms, the commission and the governing body of each consumer-owned utility shall each provide a report to the group identifying where adopted rules differ from standard technical requirements and standard application forms submitted by the group. The group shall provide information, electronically, to the department of community, trade, and economic development identifying the electric utilities that have adopted rules that are substantially consistent with the standard technical requirements and standard application forms submitted by the group.
     (6) The group must meet by July 16, 2007, and each year thereafter by July 31st, to update, by majority agreement, standard technical requirements for interconnection at each of the levels established under section 8 of this act.
     (7) The group must submit recommended changes to the commission, to the governing body of each consumer-owned utility, and to the appropriate committees of the legislature.
     (8) One year after the group establishes majority agreement and submits standard technical requirements for interconnection at all of the levels established under section 8 of this act, if electric utilities serving eighty-five percent of the total customer load in the state have not adopted standard technical requirements that are substantially consistent with standard technical requirements agreed on by the group, the department of community, trade, and economic development shall adopt rules establishing standard technical requirements for all electric utilities that have failed to adopt standard technical requirements. The rules adopted by the department shall be substantially consistent with the standard technical requirements agreed on by the group.

NEW SECTION.  Sec. 8   There are four interconnection review paths for interconnection of customer-sited generation.
     (1) Simplified. This applies to facilities certified under section 9 of this act with a capacity of ten kilowatts or less, where the generator interconnection is single-phase and for facilities certified under section 9 of this act with a capacity of one hundred kilowatts or less, where the generator interconnection is three-phase.
     (2) Expedited. This applies to facilities certified under section 9 of this act that have a capacity between ten kilowatts and one hundred kilowatts where the generator interconnection is single-phase and for facilities certified under section 9 of this act that have a power rating between one hundred kilowatts and three hundred kilowatts where the generator interconnection is three-phase.
     (3) Intermediate. This applies to facilities certified under section 9 of this act that have a capacity between three hundred kilowatts and one megawatt where the generator interconnection is three-phase.
     (4) Standard. This applies to all generating facilities not qualifying for simplified, expedited, or intermediate interconnection that have a power rating of ten megawatts or less.

NEW SECTION.  Sec. 9   (1) To qualify for simplified, expedited, or intermediate interconnection procedures, a customer-generator facility no larger than one megawatt must be certified under this section.
     (2) An equipment package shall be certified for interconnected operation if it has been submitted by a manufacturer, tested, and listed by a nationally recognized testing and certification laboratory for continuous interactive operation with a utility grid in compliance with the following:
     (a) The institute of electrical and electronic engineers' 1547 standard for interconnecting distributed resources with electric power systems or 929 standard for inverters less than ten kilowatts in size; and
     (b) UL 1741 inverters, converters, and controllers for use in independent power systems.
     (3) If the equipment package has been tested and listed as an integrated package, which includes a generator or other electric source, the equipment package shall be deemed certified and the electric utility shall not require further design review, testing, or additional equipment.
     (4) If the equipment package includes only the interface components such as switchgear, inverters, or other interface devices, then an interconnection applicant must show that the generator or other electric source being used with the equipment package is compatible with the equipment package and consistent with the testing and listing specified for the package.
     (5) A certified equipment package does not include equipment provided by the electric utility.

NEW SECTION.  Sec. 10   To qualify for simplified, expedited, or intermediate interconnection, the aggregated generation, including the proposed generator, must not:
     (1) Exceed ten percent of the total circuit annual peak load under normal operating conditions;
     (2) Contribute more than ten percent to the distribution circuit's maximum fault current at the point on the high voltage primary level nearest the proposed point of common coupling;
     (3) Compromise the operation of system safety protective devices; and
     (4) Compromise system safety and reliability, as measured by specific and verifiable industry standards.

NEW SECTION.  Sec. 11   (1) Each electric utility must have a simplified interconnection procedure for facilities qualified under section 9 of this act that have a capacity of ten kilowatts or less, where the generator interconnection is single-phase and for facilities certified under section 9 of this act with a capacity of one hundred kilowatts or less, where the generator interconnection is three-phase.
     (2) The simplified procedure must include the following steps:
     (a) The customer-generator must submit an application filled out properly and completely, including a reasonable application fee established by the electric utility to defray costs of processing and reviewing applications;
     (b) The electric utility must acknowledge to the customer-generator receipt of the application within five business days of receipt of the application;
     (c) The electric utility must evaluate the application for completeness and compliance with standard technical requirements, and notify the customer-generator within ten business days of acknowledging receipt of the application that the application is or is not complete;
     (d) If the application is incomplete, the application shall be rejected and returned to the customer with a list of items needed to make it complete;
     (e) If the proposed interconnection meets standard technical requirements, within five business days of notifying the customer-generator that the application is complete, the electric utility must execute and send an interconnection agreement to the customer-generator;
     (f) The customer-generator must return the signed agreement within five business days of receiving the agreement from the electric utility;
     (g) The electric utility and the customer-generator must establish a schedule for installation of the facility and the customer-generator must notify the electric utility when installation is complete;
     (h) After installation, the electric utility may inspect an installed generating facility for compliance with standard technical requirements and may arrange for a witness test in which the generating facility is tested with a representative from the electric utility present;
     (i) If the inspection and test are satisfactory, within five business days of completing the inspection, the electric utility must notify the customer-generator in writing that interconnection is allowed and approved;
     (j) If the inspection and test are not satisfactory, within five business days of completing the inspection and test, the electric utility must notify the customer and the customer-generator must comply with standard technical requirements before interconnection is allowed and approved; and
     (k) Customer-generators who do not receive any notice from the electric utility within fifteen business days of the inspection and test are deemed approved for interconnection.
     (3) Additional protection equipment not included with the certified generator or interconnection equipment package may be added at the electric utility's discretion if the performance of the system is not negatively impacted in any way and the customer-generator is not charged for equipment in addition to that which is included in the certified equipment package.

NEW SECTION.  Sec. 12   (1) Each electric utility must have an expedited interconnection procedure for facilities certified under section 9 of this act that have a capacity between ten kilowatts and one hundred kilowatts where the generator interconnection is single-phase and for facilities certified under section 9 of this act that have a capacity between one hundred kilowatts and three hundred kilowatts where the generator interconnection is three-phase.
     (2) The expedited procedure must include the following steps:
     (a) To assist customers in the interconnection process, the electric utility must designate an employee or office from which basic application information can be obtained through an informal process;
     (b) Upon the applicant's request, the electric utility must meet with the applicant before submission of an application;
     (c) The applicant must submit an application filled out properly and completely to the electric utility, including a reasonable application fee established by the electric utility to defray costs of processing and reviewing applications;
     (d) The electric utility must acknowledge to the applicant receipt of the application within five business days of receipt of the application;
     (e) The electric utility must notify the applicant within fifteen business days of its receipt of the application whether the application has been completed adequately;
     (f) If the application is incomplete, the electric utility must provide the applicant with a written list detailing all information that must be provided to complete the application;
     (g) The applicant must submit the missing information within ten business days of receiving the written list. If the applicant does not submit the listed information to the electric utility within the ten business days, the application shall be deemed withdrawn;
     (h) An application is complete when the applicant submits all information identified in the electric utility's written list. The electric utility must acknowledge to the customer-generator receipt of the application within five business days of receiving the information identified in the electric utility's written list;
     (i) The electric utility must review the proposed interconnection within twenty business days after the electric utility notifies the applicant it has received a complete application. Review must include the following:
     (i) Review of compliance with standard technical requirements;
     (ii) Notice to the applicant of the results, including copies of analysis and data underlying the electric utility's determinations; and
     (iii) Any additional studies or tests the electric utility deems necessary to evaluate the proposed interconnection, conducted at the electric utility's own expense;
     (j) If review determines that the proposed interconnection meets standard technical requirements, the interconnection application must be approved and the electric utility must provide the applicant with an executable interconnection agreement within five business days after the determination;
     (k) If review determines that the proposed interconnection does not meet standard technical requirements, but the electric utility determines through review that the small generator may nevertheless be interconnected consistent with safety, reliability, and power quality standards, with or without minor system modifications, the electric utility will provide the applicant with an executable interconnection agreement within five business days after the determination and the generator is responsible for the cost of any minor system modifications required;
     (l) If review determines that the proposed interconnection does not meet standard technical requirements, and the electric utility does not or cannot determine that the generator may nevertheless be interconnected consistent with safety, reliability, and power quality standards, then the electric utility must:
     (i) Offer to perform additional review if the electric utility concludes that additional review might determine that the proposed interconnection could qualify for interconnection pursuant to the expedited technical requirements; and
     (ii) Provide a nonbinding, but good faith estimate of the costs and schedule for the additional review;
     (m) Within five business days of receiving an executable interconnection agreement from the electric utility, the applicant must return the signed interconnection agreement to the electric utility;
     (n) The electric utility and the customer-generator must establish a schedule for installation of the facility and the customer-generator must notify the electric utility when installation is complete;
     (o) After installation, the electric utility may inspect an installed generating facility for compliance with standard technical requirements and may arrange for a witness test, in which the generating facility is tested with a representative from the utility present;
     (p) If the inspection and test are satisfactory, within five business days of completing the inspection, the electric utility must notify the customer in writing that interconnection is allowed and approved; and
     (q) If the inspection and test are not satisfactory, within five business days of completing the inspection and test, the electric utility must notify the customer and the customer-generator must comply with standard technical requirements before interconnection is allowed and approved.
     (3) Additional fees may be charged to customer-generators if their generator interconnection requires minor system modifications under subsection (2)(k) of this section or additional review under subsection (2)(l) of this section.

NEW SECTION.  Sec. 13   (1) Each electric utility must have an intermediate interconnection procedure for facilities certified under section 9 of this act that have a capacity between three hundred kilowatts and one megawatt where the generator interconnection is three-phase.
     (2) The intermediate procedure must include the following steps:
     (a) To assist applicants in the interconnection process, the electric utility must designate an employee or office from which basic information on the application can be obtained through an informal process;
     (b) Upon the applicant's request, the electric utility must meet with the applicant before submission of an application for interconnection;
     (c) The applicant must submit an application filled out properly and completely to the electric utility, including a reasonable application fee established by the electric utility to defray costs of processing and reviewing applications;
     (d) The electric utility must acknowledge to the applicant receipt of the application within five business days of receipt of the application;
     (e) The electric utility must notify the applicant within fifteen business days of its receipt of the application whether the application has been completed adequately;
     (f) If the application is incomplete, the electric utility must provide the applicant with a written list detailing all information that must be provided to complete the application;
     (g) The applicant must submit the missing information within ten business days of receiving the written list. If the applicant does not submit the listed information to the electric utility within ten business days, the application shall be deemed withdrawn;
     (h) An application is complete when the applicant submits all of the information identified in the electric utility's written list and the electric utility must acknowledge to the applicant receipt of the application within five business days of receiving the information identified in the electric utility's written list;
     (i) Within sixty business days after the electric utility notifies the applicant that it received a complete application, the electric utility must perform review of the proposed interconnection. Review must include the following:
     (i) Review of electric utility system impact, if any, and compliance with standard technical requirements;
     (ii) Notice to the applicant of the results, including copies of the analysis and data underlying the electric utility's determinations; and
     (iii) Any additional studies or tests the electric utility deems necessary to evaluate the proposed interconnection, conducted at the electric utility's own expense;
     (j) If review determines that the proposed interconnection meets standard technical requirements, the electric utility must approve the interconnection application and must provide the applicant an executable interconnection agreement within five business days after the determination;
     (k) If review determines that the proposed interconnection does not meet standard technical requirements, but the electric utility determines through the review that the small generator may nevertheless be interconnected consistent with safety, reliability, and power quality standards, with or without minor system modifications, the electric utility must approve the interconnection application and provide the applicant an executable interconnection agreement within five business days;
     (l) If review determines that the proposed interconnection does not meet standard technical requirements, and the electric utility does not or cannot determine from the initial review that the generator may nevertheless be interconnected consistent with safety, reliability, and power quality standards, then the electric utility must:
     (i) Offer to perform additional review if the electric utility concludes that an additional review might determine that the generator could qualify for interconnection; and
     (ii) Provide a nonbinding, but good faith estimate of the costs and schedule for the additional review;
     (m) The applicant must return the signed agreement to the electric utility within five business days of receiving an executable interconnection agreement from the electric utility;
     (n) The electric utility and the customer-generator must establish a schedule for installation of the facility and the customer-generator must notify the electric utility when installation is complete;
     (o) After installation, the electric utility may inspect an installed generating facility for compliance with standard technical requirements and may arrange for a witness test, in which the generating facility is tested with a representative from the utility present;
     (p) If the inspection and test are satisfactory, within five business days of completing the inspection, the electric utility must notify the customer in writing that interconnection is allowed and approved; and
     (q) If the inspection and test are not satisfactory, within five business days of completing the inspection, the electric utility must notify the customer-generator and the customer-generator must comply with standard technical requirements before interconnection is allowed and approved.
     (3) Additional fees may be charged to customer-generators if their generator interconnection requires the electric utility to conduct an impact study under subsection (2)(i)(i) of this section, minor system modifications under subsection (2)(k) of this section, or additional review under subsection (2)(l) of this section.

NEW SECTION.  Sec. 14   (1) Each electric utility must have a standard interconnection procedure available for generators not exceeding ten megawatts in capacity that do not qualify for simplified, expedited, or intermediate interconnection procedures.
     (2) The standard procedure must include the following steps:
     (a) To assist applicants in the interconnection process, the electric utility must designate an employee or office from which basic information on the application can be obtained through an informal process;
     (b) Upon the applicant's request, the electric utility must meet with the applicant before submission of an application for interconnection;
     (c) The applicant must submit an application filled out properly and completely, including a reasonable application fee established by the electric utility to defray costs of processing and reviewing applications, or an applicant's interconnection application is transferred from simplified, expedited, or intermediate interconnection procedures for failure to meet all of the requirements of those procedures. If an application is transferred from simplified, expedited, or intermediate interconnection procedures, the application shall be considered as a newly submitted application for standard review;
     (d) The electric utility must acknowledge receipt of the application or the transfer from simplified, expedited, or intermediate interconnection procedures within five business days;
     (e) The electric utility must notify the applicant within fifteen business days of receipt of the application whether the application has been completed adequately;
     (f) If the application is incomplete, the electric utility must at the same time provide the applicant a written list detailing all information that must be provided to complete the application;
     (g) The applicant must submit the missing information within ten business days of receiving the written list. If the applicant does not submit the listed information to the electric utility within ten business days, the application shall be deemed withdrawn;
     (h) An application is complete when the applicant submits all of the information identified in the electric utility's written list. The electric utility must acknowledge to the applicant receipt of the application within five business days of receiving the information identified in the electric utility's written list;
     (i) Within twenty business days of notifying the customer-generator that the application is complete, the electric utility must conduct initial review. Initial review must include:
     (i) Review using standard technical requirements;
     (ii) A scoping meeting or discussion with the customer-generator to review the application;
     (iii) Review of information such as the available fault current at the proposed location, the existing peak loading on the lines in the general vicinity of the proposed generator, and the configuration of the distribution lines at the proposed point of interconnection; and
     (iv) Any additional studies or tests the electric utility deems necessary to evaluate the proposed interconnection, conducted at the electric utility's own expense;
     (j) If initial review determines that additional study is necessary, the electric utility must conduct supplemental review within twenty business days of completing initial review. Supplemental review shall identify:
     (i) Specific additional requirements for interconnection and an executable interconnection agreement; or
     (ii) Notice that continued additional studies are required;
     (k) When supplemental review reveals that continued additional studies are required, the electric utility and the customer-generator must enter into an agreement that provides for the electric utility to perform additional studies, facility design, and engineering, and provides detailed cost estimates for billing to the customer-generator at the customer-generator's expense. The agreement must set forth the electric utility's estimated schedule and charges for completing such work;
     (l) The maximum amount of time provided to complete all review and studies is one hundred fifty business days;
     (m) If the electric utility determines, in accordance with good utility practice, that system modifications or additions to the electric utility's electric system are necessary, the electric utility will produce a cost estimate and schedule for the modifications. The electric utility and the customer-generator shall enter into an agreement setting forth the electric utility and the customer-generator's responsibilities, completion schedules, and costs;
     (n) After executing the applicable agreements, the electric utility and the customer-generator shall construct and install modifications or facilities identified in the agreements;
     (o) After installation, the electric utility shall inspect the completed generator installation and attend any required commissioning tests;
     (p) If the inspection and tests are satisfactory, within five business days of completing the tests, the electric utility shall notify the customer in writing that interconnection is allowed and approved; and
     (q) If the inspection and tests are not satisfactory, within five business days of completing the inspection, the electric utility must notify the customer-generator and the customer-generator must satisfy inspection and tests before interconnection is allowed and approved.

NEW SECTION.  Sec. 15   (1) Once an interconnection has been approved under this chapter, the electric utility shall not require a customer-generator to test its facility except for the following:
     (a) An annual test in which the customer-generator's facility is disconnected from the electric utility's equipment to ensure that the generator stops delivering power to the grid;
     (b) Any manufacturer-recommended testing; and
     (c) Testing when the electric utility has identified a condition outside of normal operating conditions that will affect system safety and reliability.
     (2) An electric utility may inspect a customer-generator's facility both before and after interconnection approval is granted, at reasonable hours and with reasonable advance notice to the customer-generator.
     (3) If the electric utility discovers the customer-generator's facility is not in compliance with standard technical requirements and the noncompliance adversely affects the safety or reliability of the electric system, the electric utility shall require disconnection of the customer-generator's facility until it complies with this chapter. If the customer-generator fails to disconnect, the electric utility may itself disconnect the facility.
     (4) Each customer-generator approved for interconnection shall affix to their electric revenue meter a warning sign that notifies utility personnel of the existence of customer-sited parallel generation.

NEW SECTION.  Sec. 16   (1) A customer-generator approved for interconnection must, at its own expense, maintain in force general liability insurance without any exclusion for liabilities related to the interconnection.
     (2) The amount of the general liability insurance must be sufficient to insure against all reasonably foreseeable direct and indirect liabilities given the size and nature of the customer-generator's generating equipment, the interconnection itself, and the characteristics of the system to which the interconnection is made.
     (3) A customer-generator must obtain additional insurance if necessary as a function of owning and operating a generating facility.
     (4) An electric utility shall not be liable directly or indirectly for permitting or continuing to allow an interconnection, or for the acts or omissions of the customer-generator that cause loss or injury, including death, to any third party.

NEW SECTION.  Sec. 17   (1) The procedures established in this chapter apply under normal work conditions and when an electric utility has a reasonable number of applications for interconnection under review.
     (2) A customer-generator may bring a civil action in the appropriate court of limited jurisdiction identified in RCW 3.02.010 to enforce this chapter and recover damages up to the maximum amount of damages specified in RCW 3.66.020.
     (3) Damages in the amount of ten dollars per kilowatt capacity of the customer-generator's generating facility applies to an electric utility's failure to comply with procedures established under this chapter up to the maximum amount of damages specified in RCW 3.66.020.

NEW SECTION.  Sec. 18   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION.  Sec. 19   Sections 1, 2, and 6 through 18 of this act constitute a new chapter in Title 19 RCW."