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General Assembly Substitute Bill No. 7156
January Session, 2019
AN ACT CONCERNING TH E PROCUREMENT OF ENE RGY DERIVED
FROM OFFSHORE WIND.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective July 1, 2019) (a) The Commissioner of 1
Energy and Environmental Protection, in consultation with the 2
procurement manager identified in subsection (l) of section 16-2 of the 3
general statutes and the Office of Consumer Counsel, may, in 4
coordination with other states in the control area of the regional 5
independent system operator, as defined in section 16-1 of the general 6
statutes, or on behalf of Connecticut alone, solicit proposals, in one 7
solicitation or multiple solicitations, from providers of energy derived 8
from offshore wind facilities that are Class I renewable energy sources, 9
as defined in section 16-1 of the general statutes. Any such solicitation 10
or solicitations shall be for quantities of energy and within the timing 11
and schedule determined by the commissioner, and shall be informed 12
by the Integrated Resources Plan pursuant to subsection (j) of section 13
16a-3a of the general statutes, as amended by this act. In developing 14
any solicitations pursuant to this section, the commissioner shall: 15
(1) Include requirements for contract commitments in selected bids 16
that (A) require payment of not less than the prevailing wage, as 17
described in section 31-53 of the general statutes, for laborers, 18
workmen and mechanics performing construction activities within the 19 Substitute Bill No. 7156
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United States with respect to the project, and (B) require selected 20
bidders to engage in a good faith negotiation of a project labor 21
agreement. Any solicitation issued pursuant to this section shall 22
specify the minimum terms that such project labor agreements shall 23
address. 24
(2) Include requirements in selected bids that require the inclusion 25
of an explicit description of the best management practices that will be 26
employed by the bidder and that are informed by the latest science at 27
the time the proposal is made that will avoid, minimize and mitigate 28
any impacts to wildlife, natural resources, ecosystems and traditional 29
or existing water-dependent uses. 30
(3) Include requirements in selected bids that (A) require that wind 31
turbines are installed in an east-west orientation and spaced at least 32
two nautical miles apart to lessen any impacts to current fishing vessel 33
operators, (B) identify necessary transit routes to accommodate fishing 34
vessels so that such vessels may safely and efficiently traverse lease 35
areas, (C) require an evaluation of the impacts of the proposal on ocean 36
circulation patterns and water flow, (D) require the study of cable 37
exposure to ensure the best location and depth of cables that will be 38
installed to limit exposure risk, (E) require an analysis of impacts from 39
underwater noise, (F) require protections for fisheries that are at a 40
minimum equivalent to any protections adopted by the state of New 41
York, (G) require selected bidders to make contributions to regional 42
science and monitoring activities, provided any studies conducted 43
pursuant to such activities shall be approved or conducted by the 44
National Marine Fisheries Service, (H) require the submission of a 45
fisheries mitigation plan that selected bidders will adhere to for 46
Connecticut fishermen that focuses on the avoidance and minimization 47
of impacts to fisheries and fishermen, and (I) require the development 48
of a compensation fund that will be funded at a level that is 49
determined to be sufficient by economic studies to compensate 50
fishermen and fishing communities affected by the project. 51
(b) In making any selection of such proposals, the commissioner 52 Substitute Bill No. 7156
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shall consider factors, including, but not limited to, (1) whether the 53
proposal is in the best interest of ratepayers, including, but not limited 54
to, the delivered price of such sources, (2) whether the proposal 55
promotes electric distribution system reliability, including during 56
winter peak demand, (3) any positive impacts on the state's economic 57
development, (4) whether the proposal is consistent with the 58
requirements to reduce greenhouse gas emissions in accordance with 59
section 22a-200a of the general statutes, (5) whether the proposal is 60
consistent with the policy goals outlined in the Comprehensive Energy 61
Strategy adopted pursuant to section 16a-3d of the general statutes and 62
the Integrated Resources Plan adopted pursuant to section 16a-3a of 63
the general statutes, as amended by this act, (6) whether the proposal is 64
consistent with the goals and policies set forth in sections 22a-92 and 65
25-157t of the general statutes, and (7) whether the proposal uses 66
practices to avoid, minimize and mitigate impacts to wildlife, natural 67
resources, ecosystems and traditional or existing water-dependent 68
uses. In considering whether a proposal has any positive impacts on 69
the state's economic development, the commissioner shall consult with 70
the Commissioner of Economic and Community Development. The 71
commissioner may select proposals from such resources that have a 72
total nameplate capacity rating of not more than two thousand 73
megawatts in the aggregate. 74
(c) The commissioner may direct the electric distribution companies 75
to enter into power purchase agreements for energy, capacity and 76
environmental attributes, or any combination thereof, for periods of 77
not more than twenty years on behalf of all customers of the state's 78
electric distribution companies. Certificates issued by the New 79
England Power Pool Generation Information System for any Class I 80
renewable energy sources procured by an electric distribution 81
company pursuant to this section may be: (1) Sold into the New 82
England Power Pool Generation Information System renewable energy 83
credit market to be used by any electric supplier or electric distribution 84
company to meet the requirements of section 16-245a of the general 85
statutes, as amended by this act, provided the revenues from such sale 86 Substitute Bill No. 7156
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are credited to electric distribution company customers as described in 87
this section; or (2) retained by the electric distribution company to 88
meet the requirements of section 16-245a of the general statutes, as 89
amended by this act. In considering whether to sell or retain such 90
certificates, the company shall select the option that is in the best 91
interest of such company's ratepayers. 92
(d) Any agreement entered into pursuant to this section shall be 93
subject to review and approval by the Public Utilities Regulatory 94
Authority, which review shall be completed not later than one 95
hundred twenty days after the date on which such agreement is filed 96
with the authority. The authority shall approve agreements that it 97
determines (1) provide for the delivery of adequate and reliable 98
products and services, for which there is a clear public need, at a just 99
and reasonable price, (2) are prudent and cost effective, and (3) are 100
between an electric distribution company and a respondent to the 101
solicitation that has the technical, financial and managerial capabilities 102
to perform pursuant to such agreement. The net costs of any such 103
agreement, including costs incurred by the electric distribution 104
companies under the agreement and reasonable costs incurred by the 105
electric distribution companies in connection with the agreement, shall 106
be recovered through a fully reconciling component of electric rates for 107
all customers of electric distribution companies. Any net revenues 108
from the sale of products purchased in accordance with long-term 109
contracts entered into pursuant to this section shall be credited to 110
customers through the same fully reconciling rate component for all 111
customers of the contracting electric distribution company. 112
Sec. 2. Section 16a-3a of the general statutes is amended by adding 113
subsection (j) as follows (Effective from passage): 114
(NEW) (j) For the Integrated Resources Plan next approved after 115
January 1, 2019, the department shall determine (1) the quantity of 116
energy the Commissioner of Energy and Environmental Protection 117
may seek in any solicitation or solicitations of proposals made 118
pursuant to section 1 of this act, provided the quantity of energy 119 Substitute Bill No. 7156
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sought in any such solicitations in the aggregate shall be from 120
resources that have a total nameplate capacity rating of not more than 121
two thousand megawatts in the aggregate; and (2) the timing and 122
schedule of any solicitation or solicitations of proposals made pursuant 123
to section 1 of this act. Such determinations shall be based on factors 124
including, but not limited to, electricity system needs identified by the 125
Integrated Resources Plan, including, but not limited to, capacity, 126
winter reliability, progress in meeting the goals in the Global Warming 127
Solutions Act pursuant to section 22a-200a, the priorities of the 128
Comprehensive Energy Strategy adopted pursuant to section 16a-3d, 129
positive impacts on the state's economic development, opportunities to 130
coordinate procurement with other states, forecasted trends in 131
technology costs and impacts on the state's ratepayers. 132
Sec. 3. Subsection (a) of section 16-245a of the general statutes is 133
repealed and the following is substituted in lieu thereof (Effective July 134
1, 2019): 135
(a) Subject to any modifications required by the Public Utilities 136
Regulatory Authority for retiring renewable energy certificates on 137
behalf of all electric ratepayers pursuant to subsection (h) of this 138
section and sections 16a-3f, 16a-3g, 16a-3h, 16a-3i, 16a-3j, [and] 16a-3m 139
and section 1 of this act, an electric supplier and an electric distribution 140
company providing standard service or supplier of last resort service, 141
pursuant to section 16-244c, shall demonstrate: 142
(1) On and after January 1, 2006, that not less than two per cent of 143
the total output or services of any such supplier or distribution 144
company shall be generated from Class I renewable energy sources 145
and an additional three per cent of the total output or services shall be 146
from Class I or Class II renewable energy sources; 147
(2) On and after January 1, 2007, not less than three and one-half per 148
cent of the total output or services of any such supplier or distribution 149
company shall be generated from Class I renewable energy sources 150
and an additional three per cent of the total output or services shall be 151 Substitute Bill No. 7156
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from Class I or Class II renewable energy sources; 152
(3) On and after January 1, 2008, not less than five per cent of the 153
total output or services of any such supplier or distribution company 154
shall be generated from Class I renewable energy sources and an 155
additional three per cent of the total output or services shall be from 156
Class I or Class II renewable energy sources; 157
(4) On and after January 1, 2009, not less than six per cent of the 158
total output or services of any such supplier or distribution company 159
shall be generated from Class I renewable energy sources and an 160
additional three per cent of the total output or services shall be from 161
Class I or Class II renewable energy sources; 162
(5) On and after January 1, 2010, not less than seven per cent of the 163
total output or services of any such supplier or distribution company 164
shall be generated from Class I renewable energy sources and an 165
additional three per cent of the total output or services shall be from 166
Class I or Class II renewable energy sources; 167
(6) On and after January 1, 2011, not less than eight per cent of the 168
total output or services of any such supplier or distribution company 169
shall be generated from Class I renewable energy sources and an 170
additional three per cent of the total output or services shall be from 171
Class I or Class II renewable energy sources; 172
(7) On and after January 1, 2012, not less than nine per cent of the 173
total output or services of any such supplier or distribution company 174
shall be generated from Class I renewable energy sources and an 175
additional three per cent of the total output or services shall be from 176
Class I or Class II renewable energy sources; 177
(8) On and after January 1, 2013, not less than ten per cent of the 178
total output or services of any such supplier or distribution company 179
shall be generated from Class I renewable energy sources and an 180
additional three per cent of the total output or services shall be from 181
Class I or Class II renewable energy sources; 182 Substitute Bill No. 7156
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(9) On and after January 1, 2014, not less than eleven per cent of the 183
total output or services of any such supplier or distribution company 184
shall be generated from Class I renewable energy sources and an 185
additional three per cent of the total output or services shall be from 186
Class I or Class II renewable energy sources; 187
(10) On and after January 1, 2015, not less than twelve and one-half 188
per cent of the total output or services of any such supplier or 189
distribution company shall be generated from Class I renewable 190
energy sources and an additional three per cent of the total output or 191
services shall be from Class I or Class II renewable energy sources; 192
(11) On and after January 1, 2016, not less than fourteen per cent of 193
the total output or services of any such supplier or distribution 194
company shall be generated from Class I renewable energy sources 195
and an additional three per cent of the total output or services shall be 196
from Class I or Class II renewable energy sources; 197
(12) On and after January 1, 2017, not less than fifteen and one-half 198
per cent of the total output or services of any such supplier or 199
distribution company shall be generated from Class I renewable 200
energy sources and an additional three per cent of the total output or 201
services shall be from Class I or Class II renewable energy sources; 202
(13) On and after January 1, 2018, not less than seventeen per cent of 203
the total output or services of any such supplier or distribution 204
company shall be generated from Class I renewable energy sources 205
and an additional four per cent of the total output or services shall be 206
from Class I or Class II renewable energy sources; 207
(14) On and after January 1, 2019, not less than nineteen and one-208
half per cent of the total output or services of any such supplier or 209
distribution company shall be generated from Class I renewable 210
energy sources and an additional four per cent of the total output or 211
services shall be from Class I or Class II renewable energy sources; 212
(15) On and after January 1, 2020, not less than twenty-one per cent 213 Substitute Bill No. 7156
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of the total output or services of any such supplier or distribution 214
company shall be generated from Class I renewable energy sources 215
and an additional four per cent of the total output or services shall be 216
from Class I or Class II renewable energy sources, except that for any 217
electric supplier that has entered into or renewed a retail electric 218
supply contract on or before May 24, 2018, on and after January 1, 219
2020, not less than twenty per cent of the total output or services of any 220
such electric supplier shall be generated from Class I renewable energy 221
sources; 222
(16) On and after January 1, 2021, not less than twenty-two and one-223
half per cent of the total output or services of any such supplier or 224
distribution company shall be generated from Class I renewable 225
energy sources and an additional four per cent of the total output or 226
services shall be from Class I or Class II renewable energy sources; 227
(17) On and after January 1, 2022, not less than twenty-four per cent 228
of the total output or services of any such supplier or distribution 229
company shall be generated from Class I renewable energy sources 230
and an additional four per cent of the total output or services shall be 231
from Class I or Class II renewable energy sources; 232
(18) On and after January 1, 2023, not less than twenty-six per cent 233
of the total output or services of any such supplier or distribution 234
company shall be generated from Class I renewable energy sources 235
and an additional four per cent of the total output or services shall be 236
from Class I or Class II renewable energy sources; 237
(19) On and after January 1, 2024, not less than twenty-eight per cent 238
of the total output or services of any such supplier or distribution 239
company shall be generated from Class I renewable energy sources 240
and an additional four per cent of the total output or services shall be 241
from Class I or Class II renewable energy sources; 242
(20) On and after January 1, 2025, not less than thirty per cent of the 243
total output or services of any such supplier or distribution company 244 Substitute Bill No. 7156
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shall be generated from Class I renewable energy sources and an 245
additional four per cent of the total output or services shall be from 246
Class I or Class II renewable energy sources; 247
(21) On and after January 1, 2026, not less than thirty-two per cent of 248
the total output or services of any such supplier or distribution 249
company shall be generated from Class I renewable energy sources 250
and an additional four per cent of the total output or services shall be 251
from Class I or Class II renewable energy sources; 252
(22) On and after January 1, 2027, not less than thirty-four per cent 253
of the total output or services of any such supplier or distribution 254
company shall be generated from Class I renewable energy sources 255
and an additional four per cent of the total output or services shall be 256
from Class I or Class II renewable energy sources; 257
(23) On and after January 1, 2028, not less than thirty-six per cent of 258
the total output or services of any such supplier or distribution 259
company shall be generated from Class I renewable energy sources 260
and an additional four per cent of the total output or services shall be 261
from Class I or Class II renewable energy sources; 262
(24) On and after January 1, 2029, not less than thirty-eight per cent 263
of the total output or services of any such supplier or distribution 264
company shall be generated from Class I renewable energy sources 265
and an additional four per cent of the total output or services shall be 266
from Class I or Class II renewable energy sources; 267
(25) On and after January 1, 2030, not less than forty per cent of the 268
total output or services of any such supplier or distribution company 269
shall be generated from Class I renewable energy sources and an 270
additional four per cent of the total output or services shall be from 271
Class I or Class II renewable energy sources. 272
This act shall take effect as follows and shall amend the following
sections:
Substitute Bill No. 7156
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Section 1 July 1, 2019 New section
Sec. 2 from passage 16a-3a
Sec. 3 July 1, 2019 16-245a(a)
ET Joint Favorable Subst.