HB 5412 Summary

• Establishes framework for "shared clean energy facilities" - Class I renewable energy sources with capacity of 3 megawatts or less owned by subscriber organizations and serving multiple subscribers within the same electric distribution company service territory.

• Allows subscribers to receive on-bill credits equal to the retail electricity rate (generation, transmission, distribution charges) for their proportional share of electricity produced, with credits carried forward month-to-month if they exceed the subscriber's bill.

• Limits subscriber subscriptions to no more than 100 percent of their previous 12 months of electric consumption, and prohibits facilities from selling subscriptions exceeding total electricity production.

• Requires seller disclosure to potential subscribers prior to sale, including good faith estimates of annual kilowatt hours, plain language explanation of bill credit calculations, contract terms, and costs and benefits analysis.

• Designates that subscriber organizations and third-party operators are not considered electric distribution companies or suppliers, and that renewable energy credits belong to the facility owner unless separately contracted; unsubscribed capacity is purchased by the distribution company at locational marginal price.