Connecticut 2013 Regular Session

Connecticut House Bill HB06531 Latest Draft

Bill / Introduced Version Filed 02/27/2013

                            General Assembly  Raised Bill No. 6531
January Session, 2013  LCO No. 3850
 *03850_______ET_*
Referred to Committee on ENERGY AND TECHNOLOGY
Introduced by:
(ET)

General Assembly

Raised Bill No. 6531 

January Session, 2013

LCO No. 3850

*03850_______ET_*

Referred to Committee on ENERGY AND TECHNOLOGY 

Introduced by:

(ET)

AN ACT PRESERVING AND RETAINING THE ENVIRONMENTAL BENEFITS OF IN-STATE RESOURCES RECOVERY FACILITIES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subdivision (27) of subsection (a) of section 16-1 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):

(27) (A) "Class II renewable energy source" means energy derived from (i) a trash-to-energy facility [,] other than a Class IIA renewable energy source, (ii) a biomass facility that began operation before July 1, 1998, provided the average emission rate for such facility is equal to or less than .2 pounds of nitrogen oxides per million BTU of heat input for the previous calendar quarter, or (iii) a run-of-the-river hydropower facility provided such facility has a generating capacity of not more than five megawatts, does not cause an appreciable change in the riverflow, and began operation prior to July 1, 2003;

(B) "Class IIA renewable energy source" means energy derived from a trash-to-energy facility located in the state of Connecticut that has no outstanding bonded indebtedness;

Sec. 2. Section 16-245a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):

(a) An electric supplier and an electric distribution company providing standard service or supplier of last resort service, pursuant to section 16-244c, shall demonstrate:

(1) On and after January 1, 2006, that not less than two per cent of the total output or services of any such electric supplier or electric distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources; 

(2) On and after January 1, 2007, not less than three and one-half per cent of the total output or services of any such electric supplier or electric distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources; 

(3) On and after January 1, 2008, not less than five per cent of the total output or services of any such electric supplier or electric distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources; 

(4) On and after January 1, 2009, not less than six per cent of the total output or services of any such electric supplier or electric distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources; 

(5) On and after January 1, 2010, not less than seven per cent of the total output or services of any such electric supplier or electric distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(6) On and after January 1, 2011, not less than eight per cent of the total output or services of any such electric supplier or electric distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(7) On and after January 1, 2012, not less than nine per cent of the total output or services of any such electric supplier or electric distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(8) On and after January 1, 2013, not less than ten per cent of the total output or services of any such electric supplier or electric distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(9) On and after January 1, 2014, not less than eleven per cent of the total output or services of any such electric supplier or electric distribution company shall be generated from Class I renewable energy sources, [and] an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources and an additional two per cent of the total output or services shall be from Class IIA renewable energy sources;

(10) On and after January 1, 2015, not less than twelve and one-half per cent of the total output or services of any such electric supplier or electric distribution company shall be generated from Class I renewable energy sources, [and] an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources and an additional two per cent of the total output or services shall be from Class IIA renewable energy sources;

(11) On and after January 1, 2016, not less than fourteen per cent of the total output or services of any such electric supplier or electric distribution company shall be generated from Class I renewable energy sources, [and] an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources and an additional two per cent of the total output or services shall be from Class IIA renewable energy sources;

(12) On and after January 1, 2017, not less than fifteen and one-half per cent of the total output or services of any such electric supplier or electric distribution company shall be generated from Class I renewable energy sources, [and] an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources and an additional two per cent of the total output or services shall be from Class IIA renewable energy sources;

(13) On and after January 1, 2018, not less than seventeen per cent of the total output or services of any such electric supplier or electric distribution company shall be generated from Class I renewable energy sources, [and] an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources and an additional two per cent of the total output or services shall be from Class IIA renewable energy sources;

(14) On and after January 1, 2019, not less than nineteen and one-half per cent of the total output or services of any such electric supplier or electric distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(15) On and after January 1, 2020, not less than twenty per cent of the total output or services of any such electric supplier or electric distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources.

(b) An electric supplier or electric distribution company may satisfy the requirements of this section (1) by purchasing certificates issued by the New England Power Pool Generation Information System, provided the certificates are for (A) energy produced by a generating unit using Class I or Class II renewable energy sources and the generating unit is located in the jurisdiction of the regional independent system operator, [or] (B) energy produced by a generating unit using a Class IIA renewable energy source and the generating unit is located in the state of Connecticut, or (C) energy imported into the control area of the regional independent system operator pursuant to New England Power Pool Generation Information System Rule 2.7(c) [, as] in effect on January 1, 2006; (2) for those renewable energy certificates under contract to serve end-use customers in the state on or before October 1, 2006, by participating in a renewable energy trading program within said jurisdictions as approved by the Public Utilities Regulatory Authority; (3) by purchasing eligible renewable electricity and associated attributes from residential customers who are net producers.

(c) Any supplier who provides electric generation services solely from a Class II or Class IIA renewable energy source shall not be required to comply with the provisions of this section.

(d) An electric supplier or an electric distribution company shall base its demonstration of generation sources, as required under subsection (a) of this section on historical data, which may consist of data filed with the regional independent system operator.

(e) (1) [A] An electric supplier or an electric distribution company may make up any deficiency within its renewable energy portfolio within the first three months of the succeeding calendar year or as otherwise provided by generation information system operating rules approved by New England Power Pool or its successor to meet the generation source requirements of subsection (a) of this section for the previous year.

(2) No such electric supplier or electric distribution company shall receive credit for the current calendar year for generation from Class I, [or] Class II or Class IIA renewable energy sources pursuant to this section where such electric supplier or electric distribution company receives credit for the preceding calendar year pursuant to subdivision (1) of this subsection.

(f) The authority shall adopt regulations, in accordance with the provisions of chapter 54, to implement the provisions of this section, except that no such regulations shall be adopted with respect to Class IIA renewable energy sources.

(g) (1) Notwithstanding the provisions of this section and section 16-244c, [for periods beginning on and after January 1, 2008,] each electric distribution company may procure renewable energy certificates (A) from Class I [,] or Class II [and Class III] renewable energy sources or Class III sources through long-term contracting mechanisms, for periods beginning on and after January 1, 2008, and (B) from Class IIA renewable energy sources through long-term contracting mechanisms, for any period between January 1, 2014 and December 31, 2018. The electric distribution companies may enter into long-term contracts for (i) not more than fifteen years to procure such renewable energy certificates from Class I or Class II renewable energy sources or Class III sources; or (ii) any period between January 1, 2014 and December 31, 2018, to procure renewable energy certificates from Class IIA renewable energy sources. The electric distribution companies shall use any renewable energy certificates obtained pursuant to this section to meet their standard service and supplier of last resort renewable portfolio standard requirements.

(2) On or before July 1, 2007, the authority shall initiate a contested case proceeding to examine whether long-term contracts should be used to procure Class I, Class II and Class III certificates. In such examination, the authority shall determine (A) the impact of such contracts on price stability, fuel diversity and cost; (B) the method and timing of crediting of the procurement of renewable energy certificates against the renewable portfolio standard purchase obligations of electric suppliers and the electric distribution companies pursuant to subsection (a) of this section; (C) the terms and conditions, including reasonable performance assurance commitments, that may be imposed on entities seeking to supply renewable energy certificates; (D) the level of one-time compensation, not to exceed one mill per kilowatt hour of output and services associated with the renewable energy certificates purchased pursuant to this subsection, which may be payable to the electric distribution companies for administering the procurement provided for under this subsection and recovered as part of the generation services charge or through an appropriate nonbypassable rate component on customers' bills; (E) the manner in which costs for such program may be recovered from electric distribution company customers; and (F) any other issues the authority deems appropriate. Revenues from such compensation shall not be included in calculating the electric distribution companies' earnings to determine if rates are just and reasonable, for earnings sharing mechanisms or for purposes of sections 16-19, 16-19a and 16-19e.

(h) Notwithstanding any provision of this section, (1) the price paid by any electric supplier or electric distribution company for renewable energy certificates generated by a Class IIA renewable energy source shall be not less than four and one-half cents per kilowatt hour of the output from such Class IIA renewable energy source, and (2) the purchase obligations from a Class IIA renewable energy source described in subdivisions (9) to (13), inclusive, of subsection (a) of this section shall (A) be reduced by any amount that such purchase obligations exceed the supply of such output, as determined by the Public Utility Regulatory Authority, and (B) expire on January 1, 2019. Any electric supplier or electric distribution company seeking a determination by the authority pursuant to this subsection shall, as a condition to obtaining such determination, demonstrate to the authority reasonable efforts to comply with the requirements of this section concerning Class IIA renewable energy sources.

(i) The owner of a Class IIA renewable energy source shall use all revenue from the sale of renewable energy certificates generated by such source to reduce tipping fees paid to such source. 

 


This act shall take effect as follows and shall amend the following sections:
Section 1 July 1, 2013 16-1(a)(27)
Sec. 2 July 1, 2013 16-245a

This act shall take effect as follows and shall amend the following sections:

Section 1

July 1, 2013

16-1(a)(27)

Sec. 2

July 1, 2013

16-245a

Statement of Purpose: 

To define in-state trash-to-energy facilities without bonded indebtedness as Class IIA renewable energy sources, and to establish a temporary market for renewable attributes of such sources. 

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]