Section 139A. (a) For the purposes of this section, the following words shall have the following meanings unless the context clearly requires otherwise:—

''Small hydroelectric power net metering facility'', a facility with a nameplate capacity of 2 megawatts or less, using water to generate electricity that is connected to a distribution company.

''Small hydro tariff'', the default service kilowatt-hour rate of the local distribution company as defined in section 1 that receives electricity from a small hydropower facility or an anaerobic digestion net metering facility.

(b) Notwithstanding any general or special law to the contrary, the department may require the electric distribution companies to amend the net metering tariff to create a program for small hydroelectric power net metering facilities in the commonwealth. An electric distribution company shall pay a small hydroelectric power net metering facility monthly for electricity it received from the facility based on the kilowatt hours of electricity that the distribution company received from the facility multiplied by the small hydro tariff. A participating small hydroelectric net metering facility shall notify a distribution company that it intends to deliver electricity pursuant to the small hydro tariff program and shall comply with the distribution company's applicable reporting and interconnection requirements; provided, however that no more than 60 megawatts of small hydroelectric power aggregate capacity statewide shall be permitted to participate in the small hydroelectric power tariff program. The department shall determine an appropriate and proportionate method of allocating costs of small hydropower facilities to ensure that the costs of the program are shared collectively among all ratepayers of the distribution companies.