Bill Summaries: S474 (2013-2014 Session)

  • Summary date: Mar 27 2013 - View summary

    Amends GS 115C-530 by adding new subsections (b1) and (b2) authorizing local boards of education to enter into operating leases for design and construction of net-zero energy schools.  Defines a net-zero energy school as a school designed to generate renewable energy in an amount equal to 105% of the school's estimated annual energy consumption as determined by standards specified in the provision. Requires the electric  power supplier in that service territority to also serve the school.  Authorizes the county board of commissioners to make additional provisions when approving a net-zero school operating lease for the periodic payment schedule to be submitted to the State Treasurer, and for the State Treasurer to make lease payments directly to the lessor when the school board or county is five days in arrears on the payment and withhold that amount from state payments to the school board or county.  Requires the State Treasurer under these circumstances to conduct an audit of the school board or county.

    Amends Article 7 of GS Chapter 62 by adding a new GS 62-133.11 establishing the requirements of electric service and the power purchase contract that the electric power supplier serving a net-zero energy school must enter into with the school's owner, including the following:

    • Electric power supplier must provide service to the school at a maximum starting fee of $400 per month (escalated annually at the consumer price index).
    • Power service must include operation, maintenance, and replacement of interconnection facilities, meter reading, accounting, and related electric power services.
    • Lessor must compensate the electric power supplier for actual direct costs of distribution, transformer, and interconnection facilities.
    • School must be interconnected with electric power supplier to both receive and export power generated at the school through renewable energy sources.
    • At the end of each annual billing cycle, electricity generated by the school from renewable energy sources and reductions in energy consumption must be netted against electricity received by the school.
    • The power purchase contract must (1) fix the payment rate for the school's renewable energy electricity at no less than $40 per gross MWh, (2) be for a term of not less than 20 years, (3) require payments be made at least annually, (4) set the baseline for calculating energy savings according to energy-use intensity benchmarks from the most current Commercial Buildings Energy Consumption Survey, and (5) consider payments under the contract to be the purchase of a Renewable Energy Certificate and not a payment for electricity.
    • School is authorized to operate either renewable or nonrenewable on-site standby generation which must be treated by the supplier on the same terms and conditions  made available to other customers.

    Act is effective when it becomes law.