Substitute House Bill No. 7156
Public Act No. 19-71
AN ACT CONCERNING TH E PROCUREMENT OF ENE RGY
DERIVED FROM OFFSHOR E WIND.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective from passage) (a) (1) The Commissioner of
Energy and Environmental Protection, in consultation with the
procurement manager identified in subsection (l) of section 16-2 of the
general statutes, the Office of Consumer Counsel and the Attorney
General, may, in coordination with other states in the control area of
the regional independent system operator, as defined in section 16-1 of
the general statutes, in coordination with states in a neighboring
control area or on behalf of Connecticut alone, solicit proposals, in one
solicitation or multiple solicitations, from providers of energy derived
from offshore wind facilities that are Class I renewable energy sources,
as defined in section 16-1 of the general statutes, and any associated
transmission, provided the commissioner shall initiate a solicitation
not later than fourteen days after the effective date of this section for
projects that have a total nameplate capacity rating of up to two
thousand megawatts in the aggregate. Any such solicitation or
solicitations issued pursuant to this section on and after January 1,
2020, shall be for quantities of energy and within the timing and
schedule determined by the commissioner, and may be informed by
the Integrated Resources Plan prepared on or before January 1, 2020, Substitute House Bill No. 7156
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pursuant to subsections (b) and (j) of section 16a-3a of the general
statutes, as amended by this act, provided such schedule shall provide
for the solicitation of resources with a nameplate capacity rating of two
thousand megawatts in the aggregate by December 31, 2030.
(2) In developing any solicitations pursuant to this section, the
commissioner shall include requirements for contract commitments in
selected bids that (A) require payment of not less than the prevailing
wage, as described in section 31-53 of the general statutes, for laborers,
workmen and mechanics performing construction activities within the
United States with respect to the project, and (B) require selected
bidders to engage in a good faith negotiation of a project labor
agreement. Any solicitation issued pursuant to this section shall
specify the minimum terms that such project labor agreements shall
address.
(3) (A) In responding to any solicitations issued pursuant to this
section, a bidder shall include an environmental and fisheries
mitigation plan for the construction and operation of such offshore
wind facilities, provided such plan shall include, but not be limited to,
an explicit description of the best management practices the bidder
will employ that are informed by the latest science at the time the
proposal is made that will avoid, minimize and mitigate any impacts
to wildlife, natural resources, ecosystems and traditional or existing
water-dependent uses, including, but not limited to, commercial
fishing.
(B) In responding to any solicitations issued pursuant to this section,
a bidder may include such bidder's plans for the use of skilled labor,
including, but not limited to, for any construction and manufacturing
components of the proposal including any outreach, hiring and
referral systems, or any combination thereof, that are affiliated with an
apprenticeship training program registered with the Connecticut State
Apprenticeship Council established pursuant to section 31-22n of the Substitute House Bill No. 7156
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general statutes.
(C) In responding to any solicitations issued pursuant to this section
in calendar year 2019, each bidder shall submit at least one proposal
for resources eligible pursuant to this section with a nameplate
capacity rating of four hundred megawatts. The commissioner may
not consider or select any proposals from a bidder that does not submit
at least one proposal for resources with a nameplate capacity of four
hundred megawatts for any solicitation issued pursuant to this section
in calendar year 2019.
(4) For each solicitation issued pursuant to this section, the
commissioner shall establish a commission on environmental
standards to provide input on best practices for avoiding, minimizing
and mitigating any impacts to wildlife, natural resources, ecosystems
and traditional or existing water-dependent uses, including, but not
limited to, commercial fishing, during the construction and operation
of facilities eligible pursuant to this section.
(b) In making any selection of such proposals, the commissioner
shall consider factors, including, but not limited to, (1) whether the
proposal is in the best interest of ratepayers, including, but not limited
to, the delivered price of such sources, (2) whether the proposal
promotes electric distribution system reliability, including during
winter peak demand, (3) any positive impacts on the state's economic
development, (4) whether the proposal is consistent with the
requirements to reduce greenhouse gas emissions in accordance with
section 22a-200a of the general statutes, (5) whether the proposal is
consistent with the policy goals outlined in the Comprehensive Energy
Strategy adopted pursuant to section 16a-3d of the general statutes and
the Integrated Resources Plan adopted pursuant to section 16a-3a of
the general statutes, as amended by this act, (6) whether the proposal is
consistent with the goals and policies set forth in sections 22a-92 and 25-
157t of the general statutes, and (7) whether the proposal uses practices to Substitute House Bill No. 7156
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avoid, minimize and mitigate impacts to wildlife, natural resources,
ecosystems and traditional or existing water-dependent uses, including,
but not limited to, commercial fishing. In considering whether a
proposal has any positive impacts on the state's economic
development, the commissioner shall consult with the Commissioner
of Economic and Community Development. The commissioner may
select proposals from such resources that have a total nameplate
capacity rating of not more than two thousand megawatts in the
aggregate.
(c) The commissioner may direct the electric distribution companies
to enter into power purchase agreements for energy, capacity, any
transmission associated with such energy derived from offshore wind
facilities that are Class I renewable energy sources as defined in section
16-1 of the general statutes and environmental attributes, or any
combination thereof, for periods of not more than twenty years on
behalf of all customers of the state's electric distribution companies.
Certificates issued by the New England Power Pool Generation
Information System for any Class I renewable energy sources procured
by an electric distribution company pursuant to this section may be: (1)
Sold into the New England Power Pool Generation Information
System renewable energy credit market to be used by any electric
supplier or electric distribution company to meet the requirements of
section 16-245a of the general statutes, as amended by this act,
provided the revenues from such sale are credited to electric
distribution company customers as described in this section; or (2)
retained by the electric distribution company to meet the requirements
of section 16-245a of the general statutes, as amended by this act. In
considering whether to sell or retain such certificates, the company
shall select the option that is in the best interest of such company's
ratepayers.
(d) Any agreement entered into pursuant to this section shall be Substitute House Bill No. 7156
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subject to review and approval by the Public Utilities Regulatory
Authority, which review shall be completed not later than (1) ninety
days after the date on which such agreement is filed with the authority
for any solicitation issued pursuant to this section in calendar year
2019, and (2) one hundred twenty days for any solicitation issued
pursuant to this section on and after January 1, 2020. The authority
shall approve agreements that it determines (A) provide for the
delivery of adequate and reliable products and services, for which
there is a clear public need, at a just and reasonable price, (B) are
prudent and cost effective, and (C) are between an electric distribution
company and a respondent to the solicitation that has the technical,
financial and managerial capabilities to perform pursuant to such
agreement. The net costs of any such agreement, including costs
incurred by the electric distribution companies under the agreement
and reasonable costs incurred by the electric distribution companies in
connection with the agreement, shall be recovered through a fully
reconciling component of electric rates for all customers of electric
distribution companies. Any net revenues from the sale of products
purchased in accordance with long-term contracts entered into
pursuant to this section shall be credited to customers through the
same fully reconciling rate component for all customers of the
contracting electric distribution company. The commissioner may hire
consultants with expertise in quantitative modeling of electric and gas
markets to assist in implementing this section, including, but not
limited to, the evaluation of proposals submitted pursuant to this
section. All reasonable costs associated with the commissioner's
solicitation and review of proposals pursuant to this section shall be
recoverable through the same fully reconciling rate component for all
customers of the electric distribution companies.
Sec. 2. Subsection (b) of section 16a-3a of the general statutes is
repealed and the following is substituted in lieu thereof (Effective from
passage): Substitute House Bill No. 7156
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(b) On or before January 1, [2012] 2020, and biennially thereafter, the
Commissioner of Energy and Environmental Protection, in
consultation with the electric distribution companies, shall prepare an
assessment of (1) the energy and capacity requirements of customers
for the next three, five and ten years, (2) the manner of how best to
eliminate growth in electric demand, (3) how best to level electric
demand in the state by reducing peak demand and shifting demand to
off-peak periods, (4) the impact of current and projected
environmental standards, including, but not limited to, those related to
greenhouse gas emissions and the federal Clean Air Act goals and how
different resources could help achieve those standards and goals, (5)
energy security and economic risks associated with potential energy
resources, and (6) the estimated lifetime cost and availability of
potential energy resources.
Sec. 3. Section 16a-3a of the general statutes is amended by adding
subsection (j) as follows (Effective from passage):
(NEW) (j) For the Integrated Resources Plan next approved after
January 1, 2019, the department shall determine (1) the quantity of
energy the Commissioner of Energy and Environmental Protection
may seek in any solicitation or solicitations of proposals initiated on or
after January 1, 2020, pursuant to section 1 of this act, provided the
quantity of energy sought in any such solicitations in the aggregate
shall be from resources that have a total nameplate capacity rating of
not more than two thousand megawatts in the aggregate, less any
energy purchased pursuant to section 1 of this act on or before
December 31, 2019; and (2) the timing and schedule of any solicitation
or solicitations of proposals initiated on or after January 1, 2020,
pursuant to section 1 of this act, provided such schedule shall provide
for the solicitation of resources with a nameplate capacity rating of two
thousand megawatts in the aggregate, less any energy purchased
pursuant to section 1 of this act on or before December 31, 2019, by Substitute House Bill No. 7156
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December 31, 2030. Such determinations shall be based on factors
including, but not limited to, electricity system needs identified by the
Integrated Resources Plan, including, but not limited to, capacity,
winter reliability, progress in meeting the goals in the Global Warming
Solutions Act pursuant to section 22a-200a, the priorities of the
Comprehensive Energy Strategy adopted pursuant to section 16a-3d,
positive impacts on the state's economic development, opportunities to
coordinate procurement with other states, forecasted trends in
technology costs and impacts on the state's ratepayers.
Sec. 4. Subsection (a) of section 16-245a of the general statutes is
repealed and the following is substituted in lieu thereof (Effective from
passage):
(a) Subject to any modifications required by the Public Utilities
Regulatory Authority for retiring renewable energy certificates on
behalf of all electric ratepayers pursuant to subsection (h) of this
section and sections 16a-3f, 16a-3g, 16a-3h, 16a-3i, 16a-3j, [and] 16a-3m
and section 1 of this act, 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 supplier or 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 supplier or 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; Substitute House Bill No. 7156
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(3) On and after January 1, 2008, not less than five per cent of the
total output or services of any such supplier or 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 supplier or 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 supplier or 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 supplier or 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 supplier or 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 supplier or 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 Substitute House Bill No. 7156
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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 supplier or 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;
(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 supplier or
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;
(11) On and after January 1, 2016, not less than fourteen per cent of
the total output or services of any such supplier or 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;
(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 supplier or
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;
(13) On and after January 1, 2018, not less than seventeen per cent of
the total output or services of any such supplier or distribution
company shall be generated from Class I renewable energy sources
and an additional four per cent of the total output or services shall be
from Class I or Class II 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 supplier or
distribution company shall be generated from Class I renewable Substitute House Bill No. 7156
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energy sources and an additional four 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-one per cent
of the total output or services of any such supplier or distribution
company shall be generated from Class I renewable energy sources
and an additional four per cent of the total output or services shall be
from Class I or Class II renewable energy sources, except that for any
electric supplier that has entered into or renewed a retail electric
supply contract on or before May 24, 2018, on and after January 1,
2020, not less than twenty per cent of the total output or services of any
such electric supplier shall be generated from Class I renewable energy
sources;
(16) On and after January 1, 2021, not less than twenty-two and one-
half per cent of the total output or services of any such supplier or
distribution company shall be generated from Class I renewable
energy sources and an additional four per cent of the total output or
services shall be from Class I or Class II renewable energy sources;
(17) On and after January 1, 2022, not less than twenty-four per cent
of the total output or services of any such supplier or distribution
company shall be generated from Class I renewable energy sources
and an additional four per cent of the total output or services shall be
from Class I or Class II renewable energy sources;
(18) On and after January 1, 2023, not less than twenty-six per cent
of the total output or services of any such supplier or distribution
company shall be generated from Class I renewable energy sources
and an additional four per cent of the total output or services shall be
from Class I or Class II renewable energy sources;
(19) On and after January 1, 2024, not less than twenty-eight per cent
of the total output or services of any such supplier or distribution Substitute House Bill No. 7156
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company shall be generated from Class I renewable energy sources
and an additional four per cent of the total output or services shall be
from Class I or Class II renewable energy sources;
(20) On and after January 1, 2025, not less than thirty per cent of the
total output or services of any such supplier or distribution company
shall be generated from Class I renewable energy sources and an
additional four per cent of the total output or services shall be from
Class I or Class II renewable energy sources;
(21) On and after January 1, 2026, not less than thirty-two per cent of
the total output or services of any such supplier or distribution
company shall be generated from Class I renewable energy sources
and an additional four per cent of the total output or services shall be
from Class I or Class II renewable energy sources;
(22) On and after January 1, 2027, not less than thirty-four per cent
of the total output or services of any such supplier or distribution
company shall be generated from Class I renewable energy sources
and an additional four per cent of the total output or services shall be
from Class I or Class II renewable energy sources;
(23) On and after January 1, 2028, not less than thirty-six per cent of
the total output or services of any such supplier or distribution
company shall be generated from Class I renewable energy sources
and an additional four per cent of the total output or services shall be
from Class I or Class II renewable energy sources;
(24) On and after January 1, 2029, not less than thirty-eight per cent
of the total output or services of any such supplier or distribution
company shall be generated from Class I renewable energy sources
and an additional four per cent of the total output or services shall be
from Class I or Class II renewable energy sources;
(25) On and after January 1, 2030, not less than forty per cent of the Substitute House Bill No. 7156
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total output or services of any such supplier or distribution company
shall be generated from Class I renewable energy sources and an
additional four per cent of the total output or services shall be from
Class I or Class II renewable energy sources.
Approved June 7, 2019