45th legislature - STATE OF NEW MEXICO - first session, 2001

RELATING TO POWER GENERATION; CREATING A PROGRAM TO CERTIFY RENEWABLE ENERGY FACILITIES; REQUIRING RECORDING OF RENEWABLE ENERGY PRODUCED; ENACTING THE RENEWABLE ENERGY CERTIFICATION ACT; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. SHORT TITLE.--This act may be cited as the "Renewable Energy Certification Act".

Section 2. FINDINGS AND PURPOSES.--

A. The legislature finds that:

(1) consumers are seeking sources from which to purchase renewable energy;

(2) renewable energy facilities are entering the market;

(3) as the state proceeds with deregulation of utilities, consumers will need a means of identifying legitimate sources of renewable energy;

(4) it is necessary to set the stage for a renewable energy units trading program; and

(5) it is in the best interest of the state to establish a program that will certify renewable energy units produced and sold in New Mexico and register the state's renewable energy facilities.

B. The purposes of the Renewable Energy Certification Act are to:

(1) establish a renewable energy certification program;

(2) require certification of renewable energy generating facilities so that the public can be certain they are obtaining power generated from a renewable energy source;

(3) monitor and record the production of renewable energy generated within the state; and

(4) encourage the development of a renewable energy generation sector in the state.

Section 3. DEFINITIONS.--As used in the Renewable Energy Certification Act:

A. "account" means a renewable energy unit account maintained by the director for the purpose of tracking a program participant's renewable energy unit production;

B. "applicant" means a power generation facility for which certification is being sought;

C. "certification" means a determination by the director that a power generation facility meets the criteria to be a part of the program and may be identified as a renewable energy facility;

D. "competitive supplier" means a municipally owned utility, generation and transmission cooperative, distribution cooperative, investor-owned utility or investor-owned generation and transmission company located in New Mexico;

E. "director" means the director of the energy conservation and management division of the department of energy, minerals and natural resources;

F. "designated representative" means a natural person authorized by the owners or operators of a renewable energy facility to register that facility with the director. A designated representative shall have the authority to represent and legally bind the owners and operators of the renewable energy facility in all matters pertaining to the program;

G. "program" means the renewable energy certification program that involves recording by the director of renewable energy units generated within the state;

H. "power generation facility" means a facility that generates electric power by use of any energy source available to it;

I. "renewable energy facility" means a power generation facility located in New Mexico using renewable energy resources to generate electric power;

J. "renewable energy generator" means a person who generates electric power in New Mexico using a renewable energy resource;

K. "renewable energy resource" means the sun or wind;

L. "renewable energy technology" means a technology that exclusively relies on a renewable energy resource to generate power;

M. "renewable energy unit" means a block of one megawatt hour of power that is physically metered and verified in New Mexico and that is generated by a renewable energy facility;

N. "renewable energy units trading program" means a program that would allow a competitive supplier in its generation mix to meet a renewable energy portfolio standard if implemented pursuant to the Electric Utility Industry Restructuring Act of 1999; and

O. "small producer" means a renewable energy facility that is rated to generate ten kilowatts of power or less.

Section 4. CERTIFICATION REQUIRED.--No competitive supplier may sell power in the state that is identified as being generated from renewable energy resources unless that competitive supplier is certified pursuant to the provisions of the Renewable Energy Certification Act. No person may sell power identified as being generated from renewable energy resources to New Mexico unless the power sold is certified by the authoritative entity in the state in which the power is generated as having been generated from a renewable energy resource meeting the definition of renewable energy resource set forth in the Renewable Energy Certification Act.

Section 5. ELIGIBLE FACILITIES.--Renewable energy generators who may participate in the program are small producers, producers of aggregated small amounts of renewable energy units, producers of large amounts of renewable energy units and any other producers of wholesale or retail renewable energy units. A competitive supplier may aggregate blocks of electricity from eligible renewable energy generators in order to constitute a renewable energy unit.

Section 6. CERTIFICATION PROGRAM.--

A. The designated representative of a renewable energy facility may apply to the director for certification for the renewable energy facility.

B. The application shall be submitted on a form approved by the director and shall include the location, owner, operator, renewable energy technology, renewable energy resource and rated capacity of the power generation facility and any additional information required by the director.

C. Within thirty days from the date on which the director receives an application for certification of a renewable energy facility, the director shall certify the applicant as a renewable energy facility if he determines that:

(1) the source of the energy generated is a renewable energy resource;

(2) the power generation facility is capable of generating one megawatt hour or more from the renewable energy resource; and

(3) the energy generated from the power generation facility is separately metered so that all power delivered from it into a transmission line can be identified.

D. The director may make on-site visits to an applicant or a certified renewable energy facility to inspect its operation.

E. No power generation facility may be certified by the director if it produces energy that is delivered into a transmission system without separate metering to identify the quantity of the renewable portion of energy generated and transmitted.

F. The director may deny an application for a power generation facility to be certified as a renewable energy facility. If the director determines that the applicant cannot be certified, he shall set forth in writing the deficiencies that support his decision and provide for a time period in which the deficiencies may be remedied.

G. The director may suspend or revoke a certification for cause, which shall be set forth in writing, allowing the certified renewable energy facility a specified amount of time to remedy the cause for the suspension or revocation of the certification.

H. The director shall develop a system to record the power produced by certified renewable energy facilities in renewable energy units and shall establish an account for each certified renewable energy facility so that he can record the renewable energy units produced and transmitted by the facility.

I. During the period of time that a certified renewable energy facility has its certification suspended or revoked, the director shall not record the quantity of power generated by the power generation facility.

J. The director shall develop a means to allow competitive suppliers to aggregate amounts of power smaller than one megawatt hour from small producers to create a renewable energy unit.

K. No fee shall be imposed by the director on an applicant, renewable energy facility or a designated representative to enable participation in any part of the program.

L. Disputes arising from the implementation or process set forth in the Renewable Energy Certification Act shall be resolved by arbitration pursuant to the rules of the American arbitration association.

M. The director shall adopt rules necessary to implement the provisions of the Renewable Energy Certification Act.

Section 7. PRODUCTION AND TRANSFER OF RENEWABLE ENERGY UNITS.--The director shall:

A. record all transfers of renewable energy units between certified renewable energy facilities or between certified renewable energy facilities and consumers;

B. require that all renewable energy units are adequately identified by recording:

(1) all certified renewable energy facilities involved in the transfer;

(2) the renewable energy credit transfer date and the renewable resource that produced the credit;

(3) the identification number assigned to the renewable energy credit;

(4) the number of credits transferred; and

(5) the renewable energy unit generation date; and

C. publish at least annually a list of certified renewable energy facilities and the way in which consumers can contact them and provide an annual accounting of renewable energy units produced in New Mexico for public information.

Section 8. ENFORCEMENT--AUDITS--PENALTIES.--

A. The director may conduct audits on the power produced, the method of production or any other facet of the production of the renewable energy units recorded by him for renewable energy facilities in the program whenever he determines that a need for an audit exists.

B. The director may impose a fine of no less than five hundred dollars ($500) and no more than one hundred thousand dollars ($100,000) on the owner, operator or designated representative of:

(1) an applicant for falsifying information on an application;

(2) a certified renewable energy facility for:

(a) misrepresenting information provided to the director;

(b) altering the source of energy used to produce the power generated so that the power generation facility would not be able to retain its certification;

(c) reporting the same renewable energy units multiple times; or

(d) including in its reporting of renewable energy units energy generated by nonrenewable sources; or

(3) any certified renewable energy facility for substantial discrepancies in reporting of generation or transmission discovered in an audit.

B. The director may impose a fine of no less than five hundred dollars ($500) and no more than one hundred thousand dollars ($100,000) on the owner, operator or designated representative of a power generating facility:

(1) holding itself out to be a certified renewable energy facility when it has not been certified by the director; or

(2) misrepresenting power sold to residents or businesses in the state as being generated from renewable energy sources when the power has been generated from some other energy source.

Section 9. APPROPRIATION.--Ninety thousand dollars ($90,000) is appropriated from the general fund to the energy conservation and management division of the energy, minerals and natural resources department for expenditure in fiscal year 2002 for the purpose of administering the Renewable Energy Certification Act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2002 shall revert to the general fund.