The bill proposes the complete repeal of Chapter 39-26.6, known as "The Renewable Energy Growth Program," and establishes a new framework for renewable energy initiatives in the state. It introduces a purpose for the program aimed at enabling the state to meet its climate and resilience goals, including the promotion of renewable energy generation and the reduction of environmental impacts and carbon emissions.

The new framework includes the establishment of a performance-based incentive system to support the development of distributed-generation projects at reasonable costs. The bill continues the existence of the distributed-generation board, which will evaluate and recommend ceiling prices, annual targets, and renewable energy classifications, ensuring stakeholder involvement and monitoring the program's effectiveness.

Additionally, the bill introduces provisions regarding tariffs and performance-based incentives for renewable distributed-generation projects, particularly solar technologies. It outlines a structured approach for the electric distribution company to propose tariffs, categorizing solar projects by size and prohibiting project segmentation. Key provisions include the permanence of tariff terms once set, annual bidding processes, and clarification that power purchase agreements are not required for procurement.

The bill also allows for an enrollment program for small-scale and medium-scale solar projects, with provisions for project selection and compensation structures, including options for direct payments or bill credits. Overall, the legislation aims to streamline renewable energy development while ensuring stability and accountability in achieving the state's energy and climate objectives. The act is set to take effect on January 1, 2026.