Ariz. Admin. Code § 14-2-2302
For purposes of this Article, the following definitions apply unless the context requires otherwise:
1. "Avoided Costs" means the incremental costs to an Electric Utility for electric energy or capacity or both which, but for the purchase from the Net Metering Facility, such utility would generate itself or purchase from another source.
2. "Biomass" means any raw or processed plant-derived organic matter available on a renewable basis, including:
a. Dedicated energy crops and trees,
b. Agricultural food and feed crops,
c. Agricultural crop wastes and residues,
d. Wood wastes and residues, including:
i. Landscape waste.
ii. Right-of-way tree trimmings.
iii. Small diameter forest thinnings that are 12 inches in diameter or less.
e. Dead and downed forest products,
f. Aquatic plants,
g. Animal wastes,
h. Other vegetative waste materials,
i. Non-hazardous plant matter waste material that is segregated from other waste,
j. Forest-related resources such as:
i. Harvesting and mill residue.
ii. Pre-commercial thinnings.
iii. Slash.
iv. Brush.
k. Miscellaneous waste such as:
i. Waste pallets,
ii. Crates,
iii. Dunnage, or
l. Recycled paper fibers that are no longer suitable for recycled paper production, but not including:
i. Painted, treated, or pressurized wood;
ii. Wood contaminated with plastics or metals;
iii. Tires; or
iv. Recyclable post-consumer waste paper.
3. "Biogas" means gases that are derived from:
a. Plant-derived organic matter,
b. Agricultural food and feed matter,
c. Wood wastes,
d. Aquatic plants,
e. Animal wastes,
f. Vegetative wastes,
g. Wastewater treatment facilities using anaerobic digestion, or
h. Municipal solid waste through:
i. A digester process,
ii. An oxidation process, or
iii. Other gasification process.
4. "Combined Heat and Power" or "CHP" (also known as cogeneration) means a system that generates electricity and useful thermal energy in a single, integrated system such that the useful power output of the facility plus one-half the useful thermal energy output during any 12-month period must be no less than 42.5 percent of the total energy input of fuel to the facility.
5. "Commission" means the Arizona Corporation Commission.
6. "Electric Utility" or "Utility" means an electric distribution company that constructs, operates, and maintains the electrical distribution system for the receipt and delivery of power.
7. "Electric Utility Customer" or "Customer" means an end-use retail Customer served under a Utility's rate schedule.
8. "Fuel Cell" means a device that converts the chemical energy of a fuel directly into electricity without intermediate combustion or thermal cycles. For purposes of these Net Metering rules, the source of the chemical reaction must be derived from Renewable Resources.
9. "Geothermal" means heat from within the earth's surface.
10. "Hydroelectric" means the kinetic energy derived from moving water.
11. "Net Metering" means service to an Electric Utility Customer under which electric energy generated by or on behalf of that Electric Utility Customer from a Net Metering Facility and delivered to the Utility's local distribution facilities may be used to offset electric energy provided by the Electric Utility to the Electric Utility Customer during the applicable billing period.
12. "Net Metering Customer" means any Arizona Customer who chooses to take electric service in the manner described in the definition of Net Metering in subsection (11) and under the Net Metering tariff, as described in R14-2-2307.
13. "Net Metering Facility" means a facility for the production of electricity that:
a. Is operated by or on behalf of a Net Metering Customer and is located on the Net Metering Customer's premises;
b. Is intended primarily to provide part or all of the Net Metering Customer's requirements for electricity;
c. Uses Renewable Resources, a Fuel Cell, or CHP to generate electricity;
d. Has a generating capacity less than or equal to 125% of the Net Metering Customer's total connected load, or in the absence of customer load data, capacity less than or equal to the Customer's electric service drop capacity; and
e. Is interconnected with and can operate in parallel and in phase with an Electric Utility's existing distribution system.
14. "Renewable Resources" means natural resources that can be replenished by natural processes, including:
a. Biogas,
b. Biomass,
c. Geothermal,
d. Hydroelectric,
e. Solar, or
f. Wind.
15. "Solar" means radiation or heat from the Earth's sun that produces electricity from a device or system designed for that purpose.
16. "Wind" means energy derived from wind movement across the earth's surface that produces electricity from a device or system designed for that purpose.
Ariz. Admin. Code § R14-2-2302