1011-SAMHMORRH2673.2SHB 1011H AMD354By Representative Morris Strike everything after the enacting clause and insert thefollowing:NEW SECTION.Sec. The legislature finds it is in the publicinterest to adopt this chapter to simplify the process ofinterconnecting distributed generation facilities that will be used bycustomers, including net metered customers. The legislature recognizesthat interconnection of distributed generation facilities involvestechnical, engineering, operational, and safety issues. This chapteris intended to both identify a class of distributed generators that canbe interconnected with ease and expedition as well as standardprocedures to be used for ordinary interconnections by all electricutilities.NEW SECTION.Sec. The definitions in this section applythroughout this chapter unless the context clearly requires otherwise. (1) "Applicant" means a person who has filed an application tointerconnect a customergenerator facility to an electric distributionsystem. (2) "Application" means the standard application forms developed bythe group under section 7 of this act. (3) "Commission" means the utilities and transportation commission. (4) "Consumerowned utility" means a municipal electric utilityformed under Title 35 RCW, a public utility district formed under Title54 RCW, an irrigation district formed under chapter 87.03 RCW, acooperative formed under chapter 23.86 RCW, or a mutual corporation orassociation formed under chapter 24.06 RCW, that is engaged in thebusiness of distributing electricity to more than one retail electriccustomer in the state. (5) "Customergenerator" means a residential, commercial, or 1 industrial customer that generates electricity, including but notlimited to a customergenerator as defined in RCW 80.60.010. (6) "Customergenerator facility" means the equipment used by acustomergenerator to generate, manage, and monitor electricity. Acustomergenerator facility includes an electric generator and/or anequipment package. (7) "Electric distribution system" means the infrastructureconstructed and maintained by an electric utility to deliver electricservice to endusers. (8) "Electric utility" means a consumerowned or investorownedutility. (9) "Equipment package" means a group of components connecting anelectric generator with an electric distribution system, and includesall interface equipment including switchgear, inverters, or otherinterface devices. An equipment package may include an integratedgenerator or electric source. (10) "Fault current" means electrical current that flows through acircuit and is produced by an electrical fault, such as singlephase toground, doublephase to ground, threephase to ground, phasetophase,and threephase. A fault current is several times larger in magnitudeand a different phase angle than the current that normally flowsthrough a circuit. (11) "Good utility practice" means any of the practices, methods,and acts engaged in or approved by a significant portion of theelectric industry, or any of the practices, methods, and acts that, inthe exercise of reasonable judgment in light of the facts known at thetime the decision was made, could have been expected to accomplish thedesired result at a reasonable cost consistent with good businesspractices, reliability, safety, and expedition. "Good utilitypractice" is not intended to be limited to the optimum practice,method, or act to the exclusion of all others, but rather to beacceptable practices, methods, or acts generally accepted in theregion. (12) "Governing body" means the council of a city or town, thecommissioners of an irrigation district, municipal electric utility, orpublic utility district, or the board of directors of an electriccooperative or mutual association. 2 (13) "Group" means the interconnection technical advisory groupestablished under section 6 of this act. (14) "Interconnection agreement" means an agreement between acustomergenerator and an electric utility that governs the connectionof the customergenerator facility to the electric distribution system,as well as the ongoing operation of the customergenerator facilityafter it is connected to the system. (15) "Investorowned utility" means a company owned by investorsthat meets the definition of electrical company in RCW 80.04.010 and isengaged in distributing electricity to more than one retail electriccustomer in the state. (16) "Minor system modifications" include activities such aschanging the fuse in a fuse holder cutout, changing the settings on acircuit recloser, and other activities that usually entail less thanfour hours of work and one thousand dollars in materials. (17) "Point of common coupling" means the point where theelectrical conductors of the distribution system are connected to acustomer's and where any transfer of electric power between thecustomer and the distribution system takes place. (18) "Spot network" means a type of electric distribution systemthat uses two or more intertied transformers to supply an electricalnetwork circuit. A spot network is generally used to supply power toa single customer or a small group of customers. (19) "Standard technical requirements" means technical,engineering, operational, and safety requirements for interconnectingdistributed generation facilities established under section 7 of thisact.Sec. RCW 80.60.010 and 2000 c 158 s 1 are each amended to readas follows: The definitions in this section apply throughout this chapterunless the context clearly indicates otherwise. (1) "Commission" means the utilities and transportation commission. (2) "Customergenerator" means a user of a net metering system. (3) "Electrical company" means a company owned by investors thatmeets the definition of RCW 80.04.010. (4) "Electric cooperative" means a cooperative or associationorganized under chapter 23.86 or 24.06 RCW. 3 (5) "Electric utility" means any electrical company, public utilitydistrict, irrigation district, port district, electric cooperative, ormunicipal electric utility that is engaged in the business ofdistributing electricity to retail electric customers in the state. (6) "Irrigation district" means an irrigation district underchapter 87.03 RCW. (7) "Municipal electric utility" means a city or town that owns oroperates an electric utility authorized by chapter 35.92 RCW. (8) "Net metering" means measuring the difference between theelectricity supplied by an electric utility and the electricitygenerated by a customergenerator that is fed back to the electricutility over the applicable billing period. (9) "Net metering system" means a fuel cell or a facility for theproduction of electrical energy that: (a) Uses as its fuel either solar, wind, or hydropower; (b) Has a generating capacity of not more than ((twentyfive)) onehundred kilowatts; (c) Is located on the customergenerator's premises; (d) Operates in parallel with the electric utility's transmissionand distribution facilities; and (e) Is intended primarily to offset part or all of the customergenerator's requirements for electricity. (10) "Port district" means a port district within which anindustrial development district has been established as authorized byTitle 53 RCW. (11) "Public utility district" means a district authorized bychapter 54.04 RCW.Sec. RCW 80.60.020 and 2000 c 158 s 2 are each amended to readas follows: An electric utility: (1) Shall offer to make net metering available to eligiblecustomersgenerators on a firstcome, firstserved basis until thecumulative generating capacity of net metering systems equals ((0.1))one percent of the utility's peak demand during 1996, of which not lessthan ((0.05)) 0.5 percent shall be attributable to net metering systemsthat use as its fuel either solar, wind, or hydropower; 4 (2) Shall allow net metering systems to be interconnected using astandard kilowatthour meter capable of registering the flow ofelectricity in two directions, unless the commission, in the case of anelectrical company, or the appropriate governing body, in the case ofother electric utilities, determines, after appropriate notice andopportunity for comment: (a) That the use of additional metering equipment to monitor theflow of electricity in each direction is necessary and appropriate forthe interconnection of net metering systems, after taking into accountthe benefits and costs of purchasing and installing additional meteringequipment; and (b) How the cost of purchasing and installing an additional meteris to be allocated between the customergenerator and the utility; (3) Shall charge the customergenerator a minimum monthly fee thatis the same as other customers of the electric utility in the same rateclass, but shall not charge the customergenerator any additionalstandby, capacity, interconnection, or other fee or charge unless thecommission, in the case of an electrical company, or the appropriategoverning 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 withinterconnecting or administering net metering systems that exceed anyoffsetting benefits associated with these systems; and (b) Public policy is best served by imposing these costs on thecustomergenerator rather than allocating these costs among theutility's entire customer base.Sec. RCW 80.60.030 and 1998 c 318 s 4 are each amended to readas follows: Consistent with the other provisions of this chapter, the netenergy measurement must be calculated in the following manner: (1) The electric utility shall measure the net electricity producedor consumed during the billing period, in accordance with normalmetering practices. (2) If the electricity supplied by the electric utility exceeds theelectricity generated by the customergenerator and fed back to theelectric utility during the billing period, the customergenerator 5 shall be billed for the net electricity supplied by the electricutility, in accordance with normal metering practices. (3) If electricity generated by the customergenerator exceeds theelectricity supplied by the electric utility, the customergenerator: (a) Shall be billed for the appropriate customer charges for thatbilling period, in accordance with RCW 80.60.020; and (b) Shall be credited for the excess kilowatthours generatedduring the billing period, with this kilowatthour credit appearing onthe bill for the following billing period. ((At the beginning)) On April 30th of each calendar year, anyremaining unused kilowatthour credit accumulated during the previousyear shall be granted to the electric utility, without any compensationto the customergenerator.NEW SECTION.Sec. (1) There is hereby created theinterconnection technical advisory group. (2) Membership of the group shall consist of one representativefrom each of the investorowned utilities in the state, onerepresentative from a public utility district in the state, onerepresentative from an electric cooperative in the state, and onerepresentative 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 nocost to the state. (5) The representative from a public utility district, an electriccooperative in the state, and a municipal utility in the state, shallbe appointed by the respective statewide associations for those groups. (6) Members of the group shall serve without compensation.NEW SECTION.Sec. (1) The group must review and studytechnical, engineering, operational, safety, and procedural issuesrelated to interconnecting distributed generation facilities at each ofthe levels established under section 8 of this act. (2) By January 1, 2006, the group must establish, by majorityagreement, standard technical requirements and standard applicationforms for interconnection at the simplified and expedited levelsestablished under section 8 of this act and must submit standard 6 technical requirements and standard application forms to thecommission, to the governing body of each consumerowned utility, andto the appropriate committees of the legislature. (3) By July 1, 2006, the group must establish majority agreement onstandard technical requirements and standard application forms forinterconnection at the intermediate and standard levels establishedunder section 8 of this act and must submit standard technicalrequirements and standard application forms to the commission, to thegoverning body of each consumerowned utility, and to the appropriatecommittees of the legislature. (4) Within one hundred twenty days of receiving standard technicalrequirements and standard application forms from the group, thecommission and the governing body of each consumerowned utility shalladopt rules establishing standard technical requirements and standardapplication forms. The adopted rules shall be substantially consistentwith standard technical requirements and standard application formssubmitted by the group. (5) Within thirty days of adopting standard technical requirementsand standard application forms, the commission and the governing bodyof each consumerowned utility shall each provide a report to the groupidentifying where adopted rules differ from standard technicalrequirements and standard application forms submitted by the group.The group shall provide information, electronically, to the departmentof community, trade, and economic development identifying the electricutilities that have adopted rules that are substantially consistentwith the standard technical requirements and standard application formssubmitted by the group. (6) The group must meet by July 16, 2007, and each year thereafterby July 31st, to update, by majority agreement, standard technicalrequirements for interconnection at each of the levels establishedunder section 8 of this act. (7) The group must submit recommended changes to the commission, tothe governing body of each consumerowned utility, and to theappropriate committees of the legislature. (8) One year after the group establishes majority agreement andsubmits standard technical requirements for interconnection at all ofthe levels established under section 8 of this act, if electricutilities serving eightyfive percent of the total customer load in the 7 state have not adopted standard technical requirements that aresubstantially consistent with standard technical requirements agreed onby the group, the department of community, trade, and economicdevelopment shall adopt rules establishing standard technicalrequirements for all electric utilities that have failed to adoptstandard technical requirements. The rules adopted by the departmentshall be substantially consistent with the standard technicalrequirements agreed on by the group.NEW SECTION.Sec. There are four interconnection review pathsfor interconnection of customersited generation. (1) Simplified. This applies to facilities certified under section9 of this act with a capacity of ten kilowatts or less, where thegenerator interconnection is singlephase and for facilities certifiedunder section 9 of this act with a capacity of one hundred kilowatts orless, where the generator interconnection is threephase. (2) Expedited. This applies to facilities certified under section9 of this act that have a capacity between ten kilowatts and onehundred kilowatts where the generator interconnection is singlephaseand for facilities certified under section 9 of this act that have apower rating between one hundred kilowatts and three hundred kilowattswhere the generator interconnection is threephase. (3) Intermediate. This applies to facilities certified undersection 9 of this act that have a capacity between three hundredkilowatts and one megawatt where the generator interconnection isthreephase. (4) Standard. This applies to all generating facilities notqualifying for simplified, expedited, or intermediate interconnectionthat have a power rating of ten megawatts or less.NEW SECTION.Sec. (1) To qualify for simplified, expedited, orintermediate interconnection procedures, a customergenerator facilityno larger than one megawatt must be certified under this section. (2) An equipment package shall be certified for interconnectedoperation if it has been submitted by a manufacturer, tested, andlisted by a nationally recognized testing and certification laboratoryfor continuous interactive operation with a utility grid in compliancewith the following: 8 (a) The institute of electrical and electronic engineers' 1547standard for interconnecting distributed resources with electric powersystems or 929 standard for inverters less than ten kilowatts in size;and (b) UL 1741 inverters, converters, and controllers for use inindependent power systems. (3) If the equipment package has been tested and listed as anintegrated package, which includes a generator or other electricsource, the equipment package shall be deemed certified and theelectric utility shall not require further design review, testing, oradditional equipment. (4) If the equipment package includes only the interface componentssuch as switchgear, inverters, or other interface devices, then aninterconnection applicant must show that the generator or otherelectric source being used with the equipment package is compatiblewith the equipment package and consistent with the testing and listingspecified for the package. (5) A certified equipment package does not include equipmentprovided by the electric utility.NEW SECTION.Sec. To qualify for simplified, expedited, orintermediate interconnection, the aggregated generation, including theproposed generator, must not: (1) Exceed ten percent of the total circuit annual peak load undernormal operating conditions; (2) Contribute more than ten percent to the distribution circuit'smaximum fault current at the point on the high voltage primary levelnearest the proposed point of common coupling; (3) Compromise the operation of system safety protective devices;and (4) Compromise system safety and reliability, as measured byspecific and verifiable industry standards.NEW SECTION.Sec. (1) Each electric utility must have asimplified interconnection procedure for facilities qualified undersection 9 of this act that have a capacity of ten kilowatts or less,where the generator interconnection is singlephase and for facilities 9 certified under section 9 of this act with a capacity of one hundredkilowatts or less, where the generator interconnection is threephase. (2) The simplified procedure must include the following steps: (a) The customergenerator must submit an application filled outproperly and completely, including a reasonable application feeestablished by the electric utility to defray costs of processing andreviewing applications; (b) The electric utility must acknowledge to the customergeneratorreceipt of the application within five business days of receipt of theapplication; (c) The electric utility must evaluate the application forcompleteness and compliance with standard technical requirements, andnotify the customergenerator within ten business days of acknowledgingreceipt of the application that the application is or is not complete; (d) If the application is incomplete, the application shall berejected and returned to the customer with a list of items needed tomake it complete; (e) If the proposed interconnection meets standard technicalrequirements, within five business days of notifying the customergenerator that the application is complete, the electric utility mustexecute and send an interconnection agreement to the customergenerator; (f) The customergenerator must return the signed agreement withinfive business days of receiving the agreement from the electricutility; (g) The electric utility and the customergenerator must establisha schedule for installation of the facility and the customergeneratormust notify the electric utility when installation is complete; (h) After installation, the electric utility may inspect aninstalled generating facility for compliance with standard technicalrequirements and may arrange for a witness test in which the generatingfacility is tested with a representative from the electric utilitypresent; (i) If the inspection and test are satisfactory, within fivebusiness days of completing the inspection, the electric utility mustnotify the customergenerator in writing that interconnection isallowed and approved; 10 (j) If the inspection and test are not satisfactory, within fivebusiness days of completing the inspection and test, the electricutility must notify the customer and the customergenerator must complywith standard technical requirements before interconnection is allowedand approved; and (k) Customergenerators who do not receive any notice from theelectric utility within fifteen business days of the inspection andtest are deemed approved for interconnection. (3) Additional protection equipment not included with the certifiedgenerator or interconnection equipment package may be added at theelectric utility's discretion if the performance of the system is notnegatively impacted in any way and the customergenerator is notcharged for equipment in addition to that which is included in thecertified equipment package.NEW SECTION.Sec. (1) Each electric utility must have anexpedited interconnection procedure for facilities certified undersection 9 of this act that have a capacity between ten kilowatts andone hundred kilowatts where the generator interconnection is singlephase and for facilities certified under section 9 of this act thathave a capacity between one hundred kilowatts and three hundredkilowatts where the generator interconnection is threephase. (2) The expedited procedure must include the following steps: (a) To assist customers in the interconnection process, theelectric utility must designate an employee or office from which basicapplication information can be obtained through an informal process; (b) Upon the applicant's request, the electric utility must meetwith the applicant before submission of an application; (c) The applicant must submit an application filled out properlyand completely to the electric utility, including a reasonableapplication fee established by the electric utility to defray costs ofprocessing and reviewing applications; (d) The electric utility must acknowledge to the applicant receiptof the application within five business days of receipt of theapplication; (e) The electric utility must notify the applicant within fifteenbusiness days of its receipt of the application whether the applicationhas been completed adequately; 11 (f) If the application is incomplete, the electric utility mustprovide the applicant with a written list detailing all informationthat must be provided to complete the application; (g) The applicant must submit the missing information within tenbusiness days of receiving the written list. If the applicant does notsubmit the listed information to the electric utility within the tenbusiness days, the application shall be deemed withdrawn; (h) An application is complete when the applicant submits allinformation identified in the electric utility's written list. Theelectric utility must acknowledge to the customergenerator receipt ofthe application within five business days of receiving the informationidentified in the electric utility's written list; (i) The electric utility must review the proposed interconnectionwithin twenty business days after the electric utility notifies theapplicant it has received a complete application. Review must includethe following: (i) Review of compliance with standard technical requirements; (ii) Notice to the applicant of the results, including copies ofanalysis and data underlying the electric utility's determinations; and (iii) Any additional studies or tests the electric utility deemsnecessary to evaluate the proposed interconnection, conducted at theelectric utility's own expense; (j) If review determines that the proposed interconnection meetsstandard technical requirements, the interconnection application mustbe approved and the electric utility must provide the applicant with anexecutable interconnection agreement within five business days afterthe determination; (k) If review determines that the proposed interconnection does notmeet standard technical requirements, but the electric utilitydetermines through review that the small generator may nevertheless beinterconnected consistent with safety, reliability, and power qualitystandards, with or without minor system modifications, the electricutility will provide the applicant with an executable interconnectionagreement within five business days after the determination and thegenerator is responsible for the cost of any minor system modificationsrequired; (l) If review determines that the proposed interconnection does notmeet standard technical requirements, and the electric utility does not 12 or cannot determine that the generator may nevertheless beinterconnected consistent with safety, reliability, and power qualitystandards, then the electric utility must: (i) Offer to perform additional review if the electric utilityconcludes that additional review might determine that the proposedinterconnection could qualify for interconnection pursuant to theexpedited technical requirements; and (ii) Provide a nonbinding, but good faith estimate of the costs andschedule for the additional review; (m) Within five business days of receiving an executableinterconnection agreement from the electric utility, the applicant mustreturn the signed interconnection agreement to the electric utility; (n) The electric utility and the customergenerator must establisha schedule for installation of the facility and the customergeneratormust notify the electric utility when installation is complete; (o) After installation, the electric utility may inspect aninstalled generating facility for compliance with standard technicalrequirements and may arrange for a witness test, in which thegenerating facility is tested with a representative from the utilitypresent; (p) If the inspection and test are satisfactory, within fivebusiness days of completing the inspection, the electric utility mustnotify the customer in writing that interconnection is allowed andapproved; and (q) If the inspection and test are not satisfactory, within fivebusiness days of completing the inspection and test, the electricutility must notify the customer and the customergenerator must complywith standard technical requirements before interconnection is allowedand approved. (3) Additional fees may be charged to customergenerators if theirgenerator interconnection requires minor system modifications undersubsection (2)(k) of this section or additional review under subsection(2)(l) of this section.NEW SECTION.Sec. (1) Each electric utility must have anintermediate interconnection procedure for facilities certified undersection 9 of this act that have a capacity between three hundred 13 kilowatts and one megawatt where the generator interconnection isthreephase. (2) The intermediate procedure must include the following steps: (a) To assist applicants in the interconnection process, theelectric utility must designate an employee or office from which basicinformation on the application can be obtained through an informalprocess; (b) Upon the applicant's request, the electric utility must meetwith the applicant before submission of an application forinterconnection; (c) The applicant must submit an application filled out properlyand completely to the electric utility, including a reasonableapplication fee established by the electric utility to defray costs ofprocessing and reviewing applications; (d) The electric utility must acknowledge to the applicant receiptof the application within five business days of receipt of theapplication; (e) The electric utility must notify the applicant within fifteenbusiness days of its receipt of the application whether the applicationhas been completed adequately; (f) If the application is incomplete, the electric utility mustprovide the applicant with a written list detailing all informationthat must be provided to complete the application; (g) The applicant must submit the missing information within tenbusiness days of receiving the written list. If the applicant does notsubmit the listed information to the electric utility within tenbusiness days, the application shall be deemed withdrawn; (h) An application is complete when the applicant submits all ofthe information identified in the electric utility's written list andthe electric utility must acknowledge to the applicant receipt of theapplication within five business days of receiving the informationidentified in the electric utility's written list; (i) Within sixty business days after the electric utility notifiesthe applicant that it received a complete application, the electricutility must perform review of the proposed interconnection. Reviewmust include the following: (i) Review of electric utility system impact, if any, andcompliance with standard technical requirements; 14 (ii) Notice to the applicant of the results, including copies ofthe analysis and data underlying the electric utility's determinations;and (iii) Any additional studies or tests the electric utility deemsnecessary to evaluate the proposed interconnection, conducted at theelectric utility's own expense; (j) If review determines that the proposed interconnection meetsstandard technical requirements, the electric utility must approve theinterconnection application and must provide the applicant anexecutable interconnection agreement within five business days afterthe determination; (k) If review determines that the proposed interconnection does notmeet standard technical requirements, but the electric utilitydetermines through the review that the small generator may neverthelessbe interconnected consistent with safety, reliability, and powerquality standards, with or without minor system modifications, theelectric utility must approve the interconnection application andprovide the applicant an executable interconnection agreement withinfive business days; (l) If review determines that the proposed interconnection does notmeet standard technical requirements, and the electric utility does notor cannot determine from the initial review that the generator maynevertheless be interconnected consistent with safety, reliability, andpower quality standards, then the electric utility must: (i) Offer to perform additional review if the electric utilityconcludes that an additional review might determine that the generatorcould qualify for interconnection; and (ii) Provide a nonbinding, but good faith estimate of the costs andschedule for the additional review; (m) The applicant must return the signed agreement to the electricutility within five business days of receiving an executableinterconnection agreement from the electric utility; (n) The electric utility and the customergenerator must establisha schedule for installation of the facility and the customergeneratormust notify the electric utility when installation is complete; (o) After installation, the electric utility may inspect aninstalled generating facility for compliance with standard technical 15 requirements and may arrange for a witness test, in which thegenerating facility is tested with a representative from the utilitypresent; (p) If the inspection and test are satisfactory, within fivebusiness days of completing the inspection, the electric utility mustnotify the customer in writing that interconnection is allowed andapproved; and (q) If the inspection and test are not satisfactory, within fivebusiness days of completing the inspection, the electric utility mustnotify the customergenerator and the customergenerator must complywith standard technical requirements before interconnection is allowedand approved. (3) Additional fees may be charged to customergenerators if theirgenerator interconnection requires the electric utility to conduct animpact study under subsection (2)(i)(i) of this section, minor systemmodifications under subsection (2)(k) of this section, or additionalreview under subsection (2)(l) of this section.NEW SECTION.Sec. (1) Each electric utility must have astandard interconnection procedure available for generators notexceeding 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, theelectric utility must designate an employee or office from which basicinformation on the application can be obtained through an informalprocess; (b) Upon the applicant's request, the electric utility must meetwith the applicant before submission of an application forinterconnection; (c) The applicant must submit an application filled out properlyand completely, including a reasonable application fee established bythe electric utility to defray costs of processing and reviewingapplications, or an applicant's interconnection application istransferred from simplified, expedited, or intermediate interconnectionprocedures for failure to meet all of the requirements of thoseprocedures. If an application is transferred from simplified, 16 expedited, or intermediate interconnection procedures, the applicationshall be considered as a newly submitted application for standardreview; (d) The electric utility must acknowledge receipt of theapplication or the transfer from simplified, expedited, or intermediateinterconnection procedures within five business days; (e) The electric utility must notify the applicant within fifteenbusiness days of receipt of the application whether the application hasbeen completed adequately; (f) If the application is incomplete, the electric utility must atthe same time provide the applicant a written list detailing allinformation that must be provided to complete the application; (g) The applicant must submit the missing information within tenbusiness days of receiving the written list. If the applicant does notsubmit the listed information to the electric utility within tenbusiness days, the application shall be deemed withdrawn; (h) An application is complete when the applicant submits all ofthe information identified in the electric utility's written list. Theelectric utility must acknowledge to the applicant receipt of theapplication within five business days of receiving the informationidentified in the electric utility's written list; (i) Within twenty business days of notifying the customergeneratorthat the application is complete, the electric utility must conductinitial review. Initial review must include: (i) Review using standard technical requirements; (ii) A scoping meeting or discussion with the customergenerator toreview the application; (iii) Review of information such as the available fault current atthe proposed location, the existing peak loading on the lines in thegeneral vicinity of the proposed generator, and the configuration ofthe distribution lines at the proposed point of interconnection; and (iv) Any additional studies or tests the electric utility deemsnecessary to evaluate the proposed interconnection, conducted at theelectric utility's own expense; (j) If initial review determines that additional study isnecessary, the electric utility must conduct supplemental review withintwenty business days of completing initial review. Supplemental reviewshall identify: 17 (i) Specific additional requirements for interconnection and anexecutable interconnection agreement; or (ii) Notice that continued additional studies are required; (k) When supplemental review reveals that continued additionalstudies are required, the electric utility and the customergeneratormust enter into an agreement that provides for the electric utility toperform additional studies, facility design, and engineering, andprovides detailed cost estimates for billing to the customergeneratorat the customergenerator's expense. The agreement must set forth theelectric utility's estimated schedule and charges for completing suchwork; (l) The maximum amount of time provided to complete all review andstudies is one hundred fifty business days; (m) If the electric utility determines, in accordance with goodutility practice, that system modifications or additions to theelectric utility's electric system are necessary, the electric utilitywill produce a cost estimate and schedule for the modifications. Theelectric utility and the customergenerator shall enter into anagreement setting forth the electric utility and the customergenerator's responsibilities, completion schedules, and costs; (n) After executing the applicable agreements, the electric utilityand the customergenerator shall construct and install modifications orfacilities identified in the agreements; (o) After installation, the electric utility shall inspect thecompleted generator installation and attend any required commissioningtests; (p) If the inspection and tests are satisfactory, within fivebusiness days of completing the tests, the electric utility shallnotify the customer in writing that interconnection is allowed andapproved; and (q) If the inspection and tests are not satisfactory, within fivebusiness days of completing the inspection, the electric utility mustnotify the customergenerator and the customergenerator must satisfyinspection and tests before interconnection is allowed and approved.NEW SECTION.Sec. (1) Once an interconnection has beenapproved under this chapter, the electric utility shall not require acustomergenerator to test its facility except for the following: 18 (a) An annual test in which the customergenerator's facility isdisconnected from the electric utility's equipment to ensure that thegenerator stops delivering power to the grid; (b) Any manufacturerrecommended testing; and (c) Testing when the electric utility has identified a conditionoutside of normal operating conditions that will affect system safetyand reliability. (2) An electric utility may inspect a customergenerator's facilityboth before and after interconnection approval is granted, atreasonable hours and with reasonable advance notice to the customergenerator. (3) If the electric utility discovers the customergenerator'sfacility is not in compliance with standard technical requirements andthe noncompliance adversely affects the safety or reliability of theelectric system, the electric utility shall require disconnection ofthe customergenerator's facility until it complies with this chapter.If the customergenerator fails to disconnect, the electric utility mayitself disconnect the facility. (4) Each customergenerator approved for interconnection shallaffix to their electric revenue meter a warning sign that notifiesutility personnel of the existence of customersited parallelgeneration.NEW SECTION.Sec. (1) A customergenerator approved forinterconnection must, at its own expense, maintain in force generalliability insurance without any exclusion for liabilities related tothe interconnection. (2) The amount of the general liability insurance must besufficient to insure against all reasonably foreseeable direct andindirect liabilities given the size and nature of the customergenerator's generating equipment, the interconnection itself, and thecharacteristics of the system to which the interconnection is made. (3) A customergenerator must obtain additional insurance ifnecessary as a function of owning and operating a generating facility. (4) An electric utility shall not be liable directly or indirectlyfor permitting or continuing to allow an interconnection, or for theacts or omissions of the customergenerator that cause loss or injury,including death, to any third party. 19 NEW SECTION.Sec. (1) The procedures established in thischapter apply under normal work conditions and when an electric utilityhas a reasonable number of applications for interconnection underreview. (2) A customergenerator may bring a civil action in theappropriate court of limited jurisdiction identified in RCW 3.02.010 toenforce this chapter and recover damages up to the maximum amount ofdamages specified in RCW 3.66.020. (3) Damages in the amount of ten dollars per kilowatt capacity ofthe customergenerator's generating facility applies to an electricutility's failure to comply with procedures established under thischapter up to the maximum amount of damages specified in RCW 3.66.020.NEW SECTION.Sec. If any provision of this act or itsapplication to any person or circumstance is held invalid, theremainder of the act or the application of the provision to otherpersons or circumstances is not affected.NEW SECTION.Sec. Sections 1, 2, and 6 through 18 of this actconstitute a new chapter in Title 19 RCW. Correct the title.Revises the substitute bill to clarify the authority andduties of the interconnection technical advisory group. Clarifies thatnonvoting ex officio members can participate. Provides that theinterconnection technical advisory group will have six months toestablish standard technical requirements at the first two levels ofreview and six additional months to establish standard technicalrequirements at the next two levels of review. Provides that the Utilities and Transportation Commission and thegoverning body of consumerowned utilities must adopt standardtechnical requirements that are substantially consistent with standardtechnical requirements agreed on by the interconnection technicaladvisory group. Removes the penalties associated with failing to adopt standardtechnical requirements. Provides that the Department of Community, Trade, and EconomicDevelopment shall adopt rules substantially consistent with thestandard technical requirements agreed on by the interconnectiontechnical advisory group if electric utilities serving eightyfive 20 percent of the total load in the state fail to adopt standard technicalrequirements within one year of the interconnection technical advisorygroup reaching agreement on standard technical requirements. Clarifies that an electric utility may charge a reasonable fee tocover the costs of application processing. Removes provisionsestablishing specific application fees. Revises and extends timelines for application processing andreview. Provides that additional studies, as needed at the upperlevels of review, shall be conducted by agreement between the electricutility and the customer. Clarifies that timelines and proceduresapply under normal work conditions when an electric utility has areasonable number of applications under review. Revises and corrects definitions. Makes technical changes for consistency.--- END --- 21