Connecticut 2019 Regular Session

Connecticut Senate Bill SB00875 Compare Versions

Version 1 (Old)

Version 2 (New)

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7	5		General Assembly Governor's Bill No. 875
8	6		January Session, 2019
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12	10		Referred to Committee on ENERGY AND TECHNOLOGY
13	11
14	12
15	13		Introduced by:
16	14		SEN. LOONEY, 11
17	15		th
18	16		Dist.
19	17		SEN. DUFF, 25
20	18		th
21	19		Dist.
22	20		REP. ARESIMOWICZ, 30
23	21		th
24	22		Dist.
25	23		REP. RITTER M., 1
26	24		st
27	25		Dist.
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33	32		AN ACT EXPANDING CON NECTICUT'S OFFSHORE WIND ENERGY
34	33		PORTFOLIO.
35	34		Be it enacted by the Senate and House of Representatives in General
36	35		Assembly convened:
37	36
38	37		Section 1. (NEW) (Effective July 1, 2019) (a) The Commissioner of 1
39	38		Energy and Environmental Protection, in consultation with the 2
40	39		procurement manager identified in subsection (l) of section 16-2 of the 3
41	40		general statutes and the Office of Consumer Counsel, may, in 4
42	41		coordination with other states in the control area of the regional 5
43	42		independent system operator, as defined in section 16-1 of the general 6
44	43		statutes, or on behalf of Connecticut alone, solicit proposals, in one 7
45	44		solicitation or multiple solicitations, from providers of energy derived 8
46	45		from offshore wind facilities that are Class I renewable energy sources, 9
47	46		as defined in section 16-1 of the general statutes. Any such solicitation 10
48	47		or solicitations shall be for quantities of energy and within the timing 11
49		-	and schedule determined by the commissioner, and shall be informed 12
50		-	by the Integrated Resources Plan pursuant to subsection (j) of section 13 Bill No. 875
	48	+	and schedule determined by the commissioner, and shall be informed 12 Governor's Bill No. 875
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	54	+	by the Integrated Resources Plan pursuant to subsection (j) of section 13
57	55		16a-3a of the general statutes, as amended by this act. In developing 14
58	56		any solicitations pursuant to this section, the commissioner shall 15
59	57		include requirements for contract commitments in selected bids that 16
60	58		(1) require payment of not less than the prevailing wage, as described 17
61	59		in section 31-53 of the general statutes, for laborers, workmen and 18
62	60		mechanics performing construction activities within the United States 19
63	61		with respect to the project, and (2) require selected bidders to engage 20
64	62		in a good faith negotiation of a project labor agreement. Any 21
65	63		solicitation issued pursuant to this section shall specify the minimum 22
66	64		terms that such project labor agreements shall address. 23
67	65		(b) In making any selection of such proposals, the commissioner 24
68	66		shall consider factors, including, but not limited to, (1) whether the 25
69	67		proposal is in the best interest of ratepayers, including, but not limited 26
70	68		to, the delivered price of such sources, (2) whether the proposal 27
71	69		promotes electric distribution system reliability, including during 28
72	70		winter peak demand, (3) any positive impacts on the state's economic 29
73	71		development, (4) whether the proposal is consistent with the 30
74	72		requirements to reduce greenhouse gas emissions in accordance with 31
75	73		section 22a-200a of the general statutes, and (5) whether the proposal is 32
76	74		consistent with the policy goals outlined in the Comprehensive Energy 33
77	75		Strategy adopted pursuant to section 16a-3d of the general statutes and 34
78	76		the Integrated Resources Plan adopted pursuant to section 16a-3a of 35
79	77		the general statutes, as amended by this act. In considering whether a 36
80	78		proposal has any positive impacts on the state's economic 37
81	79		development, the commissioner shall consult with the Commissioner 38
82	80		of Economic and Community Development. The commissioner may 39
83	81		select proposals from such resources to meet up to fifteen per cent of 40
84	82		the load distributed by the state's electric distribution companies. 41
85	83		(c) The commissioner may direct the electric distribution companies 42
86	84		to enter into power purchase agreements for energy, capacity and 43
87	85		environmental attributes, or any combination thereof, for periods of 44
88	86		not more than twenty years on behalf of all customers of the state's 45
89		-	electric distribution companies. Certificates issued by the New 46 Bill No. 875
	87	+	electric distribution companies. Certificates issued by the New 46 Governor's Bill No. 875
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96	93		England Power Pool Generation Information System for any Class I 47
97	94		renewable energy sources procured by an electric distribution 48
98	95		company pursuant to this section may be: (1) Sold into the New 49
99	96		England Power Pool Generation Information System renewable energy 50
100	97		credit market to be used by any electric supplier or electric distribution 51
101	98		company to meet the requirements of section 16-245a of the general 52
102	99		statutes, as amended by this act, provided the revenues from such sale 53
103	100		are credited to electric distribution company customers as described in 54
104	101		this section; or (2) retained by the electric distribution company to 55
105	102		meet the requirements of section 16-245a of the general statutes, as 56
106	103		amended by this act. In considering whether to sell or retain such 57
107	104		certificates, the company shall select the option that is in the best 58
108	105		interest of such company's ratepayers. 59
109	106		(d) Any agreement entered into pursuant to this section shall be 60
110	107		subject to review and approval by the Public Utilities Regulatory 61
111	108		Authority, which review shall be completed not later than one 62
112	109		hundred twenty days after the date on which such agreement is filed 63
113	110		with the authority. The authority shall approve agreements that it 64
114	111		determines (1) provide for the delivery of adequate and reliable 65
115	112		products and services, for which there is a clear public need, at a just 66
116	113		and reasonable price, (2) are prudent and cost effective, and (3) are 67
117	114		between an electric distribution company and a respondent to the 68
118	115		solicitation that has the technical, financial and managerial capabilities 69
119	116		to perform pursuant to such agreement. The net costs of any such 70
120	117		agreement, including costs incurred by the electric distribution 71
121	118		companies under the agreement and reasonable costs incurred by the 72
122	119		electric distribution companies in connection with the agreement, shall 73
123	120		be recovered through a fully reconciling component of electric rates for 74
124	121		all customers of electric distribution companies. Any net revenues 75
125	122		from the sale of products purchased in accordance with long-term 76
126	123		contracts entered into pursuant to this section shall be credited to 77
127	124		customers through the same fully reconciling rate component for all 78
128		-	customers of the contracting electric distribution company. 79 Bill No. 875
	125	+	customers of the contracting electric distribution company. 79
	126	+	Sec. 2. Section 16a-3a of the general statutes is amended by adding 80 Governor's Bill No. 875
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135		-	Sec. 2. Section 16a-3a of the general statutes is amended by adding 80
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136	132		subsection (j) as follows (Effective from passage): 81
137	133		(NEW) (j) For the Integrated Resources Plan next approved after 82
138	134		January 1, 2019, the department shall determine (1) the quantity of 83
139	135		energy the Commissioner of Energy and Environmental Protection 84
140	136		may seek in any solicitation or solicitations of proposals made 85
141	137		pursuant to section 1 of this act, provided the quantity of energy 86
142	138		sought in any such solicitations in the aggregate shall not exceed 87
143	139		fifteen per cent of the load distributed by the state's electric 88
144	140		distribution companies; and (2) the timing and schedule of any 89
145	141		solicitation or solicitations of proposals made pursuant to section 1 of 90
146	142		this act. Such determinations shall be based on factors including, but 91
147	143		not limited to, electricity system needs identified by the Integrated 92
148	144		Resources Plan, including, but not limited to, capacity, winter 93
149	145		reliability, progress in meeting the goals in the Global Warming 94
150	146		Solutions Act pursuant to section 22a-200a, the priorities of the 95
151	147		Comprehensive Energy Strategy adopted pursuant to section 16a-3d, 96
152	148		positive impacts on the state's economic development, opportunities to 97
153	149		coordinate procurement with other states, forecasted trends in 98
154	150		technology costs and impacts on the state's ratepayers. 99
155	151		Sec. 3. Subsection (a) of section 16-245a of the general statutes is 100
156	152		repealed and the following is substituted in lieu thereof (Effective July 101
157	153		1, 2019): 102
158	154		(a) Subject to any modifications required by the Public Utilities 103
159	155		Regulatory Authority for retiring renewable energy certificates on 104
160	156		behalf of all electric ratepayers pursuant to subsection (h) of this 105
161	157		section and sections 16a-3f, 16a-3g, 16a-3h, 16a-3i, 16a-3j, [and] 16a-3m 106
162	158		and section 1 of this act, an electric supplier and an electric distribution 107
163	159		company providing standard service or supplier of last resort service, 108
164	160		pursuant to section 16-244c, shall demonstrate: 109
165	161		(1) On and after January 1, 2006, that not less than two per cent of 110
166		-	the total output or services of any such supplier or distribution 111 Bill No. 875
	162	+	the total output or services of any such supplier or distribution 111
	163	+	company shall be generated from Class I renewable energy sources 112 Governor's Bill No. 875
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173		-	company shall be generated from Class I renewable energy sources 112
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174	169		and an additional three per cent of the total output or services shall be 113
175	170		from Class I or Class II renewable energy sources; 114
176	171		(2) On and after January 1, 2007, not less than three and one-half per 115
177	172		cent of the total output or services of any such supplier or distribution 116
178	173		company shall be generated from Class I renewable energy sources 117
179	174		and an additional three per cent of the total output or services shall be 118
180	175		from Class I or Class II renewable energy sources; 119
181	176		(3) On and after January 1, 2008, not less than five per cent of the 120
182	177		total output or services of any such supplier or distribution company 121
183	178		shall be generated from Class I renewable energy sources and an 122
184	179		additional three per cent of the total output or services shall be from 123
185	180		Class I or Class II renewable energy sources; 124
186	181		(4) On and after January 1, 2009, not less than six per cent of the 125
187	182		total output or services of any such supplier or distribution company 126
188	183		shall be generated from Class I renewable energy sources and an 127
189	184		additional three per cent of the total output or services shall be from 128
190	185		Class I or Class II renewable energy sources; 129
191	186		(5) On and after January 1, 2010, not less than seven per cent of the 130
192	187		total output or services of any such supplier or distribution company 131
193	188		shall be generated from Class I renewable energy sources and an 132
194	189		additional three per cent of the total output or services shall be from 133
195	190		Class I or Class II renewable energy sources; 134
196	191		(6) On and after January 1, 2011, not less than eight per cent of the 135
197	192		total output or services of any such supplier or distribution company 136
198	193		shall be generated from Class I renewable energy sources and an 137
199	194		additional three per cent of the total output or services shall be from 138
200	195		Class I or Class II renewable energy sources; 139
201	196		(7) On and after January 1, 2012, not less than nine per cent of the 140
202	197		total output or services of any such supplier or distribution company 141
203		-	shall be generated from Class I renewable energy sources and an 142 Bill No. 875
	198	+	shall be generated from Class I renewable energy sources and an 142
	199	+	additional three per cent of the total output or services shall be from 143 Governor's Bill No. 875
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210		-	additional three per cent of the total output or services shall be from 143
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211	205		Class I or Class II renewable energy sources; 144
212	206		(8) On and after January 1, 2013, not less than ten per cent of the 145
213	207		total output or services of any such supplier or distribution company 146
214	208		shall be generated from Class I renewable energy sources and an 147
215	209		additional three per cent of the total output or services shall be from 148
216	210		Class I or Class II renewable energy sources; 149
217	211		(9) On and after January 1, 2014, not less than eleven per cent of the 150
218	212		total output or services of any such supplier or distribution company 151
219	213		shall be generated from Class I renewable energy sources and an 152
220	214		additional three per cent of the total output or services shall be from 153
221	215		Class I or Class II renewable energy sources; 154
222	216		(10) On and after January 1, 2015, not less than twelve and one-half 155
223	217		per cent of the total output or services of any such supplier or 156
224	218		distribution company shall be generated from Class I renewable 157
225	219		energy sources and an additional three per cent of the total output or 158
226	220		services shall be from Class I or Class II renewable energy sources; 159
227	221		(11) On and after January 1, 2016, not less than fourteen per cent of 160
228	222		the total output or services of any such supplier or distribution 161
229	223		company shall be generated from Class I renewable energy sources 162
230	224		and an additional three per cent of the total output or services shall be 163
231	225		from Class I or Class II renewable energy sources; 164
232	226		(12) On and after January 1, 2017, not less than fifteen and one-half 165
233	227		per cent of the total output or services of any such supplier or 166
234	228		distribution company shall be generated from Class I renewable 167
235	229		energy sources and an additional three per cent of the total output or 168
236	230		services shall be from Class I or Class II renewable energy sources; 169
237	231		(13) On and after January 1, 2018, not less than seventeen per cent of 170
238	232		the total output or services of any such supplier or distribution 171
239	233		company shall be generated from Class I renewable energy sources 172
240		-	and an additional four per cent of the total output or services shall be 173 Bill No. 875
	234	+	and an additional four per cent of the total output or services shall be 173
	235	+	from Class I or Class II renewable energy sources; 174 Governor's Bill No. 875
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247		-	from Class I or Class II renewable energy sources; 174
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248	241		(14) On and after January 1, 2019, not less than nineteen and one-175
249	242		half per cent of the total output or services of any such supplier or 176
250	243		distribution company shall be generated from Class I renewable 177
251	244		energy sources and an additional four per cent of the total output or 178
252	245		services shall be from Class I or Class II renewable energy sources; 179
253	246		(15) On and after January 1, 2020, not less than twenty-one per cent 180
254	247		of the total output or services of any such supplier or distribution 181
255	248		company shall be generated from Class I renewable energy sources 182
256	249		and an additional four per cent of the total output or services shall be 183
257	250		from Class I or Class II renewable energy sources, except that for any 184
258	251		electric supplier that has entered into or renewed a retail electric 185
259	252		supply contract on or before May 24, 2018, on and after January 1, 186
260	253		2020, not less than twenty per cent of the total output or services of any 187
261	254		such electric supplier shall be generated from Class I renewable energy 188
262	255		sources; 189
263	256		(16) On and after January 1, 2021, not less than twenty-two and one-190
264	257		half per cent of the total output or services of any such supplier or 191
265	258		distribution company shall be generated from Class I renewable 192
266	259		energy sources and an additional four per cent of the total output or 193
267	260		services shall be from Class I or Class II renewable energy sources; 194
268	261		(17) On and after January 1, 2022, not less than twenty-four per cent 195
269	262		of the total output or services of any such supplier or distribution 196
270	263		company shall be generated from Class I renewable energy sources 197
271	264		and an additional four per cent of the total output or services shall be 198
272	265		from Class I or Class II renewable energy sources; 199
273	266		(18) On and after January 1, 2023, not less than twenty-six per cent 200
274	267		of the total output or services of any such supplier or distribution 201
275	268		company shall be generated from Class I renewable energy sources 202
276	269		and an additional four per cent of the total output or services shall be 203
277		-	from Class I or Class II renewable energy sources; 204 Bill No. 875
	270	+	from Class I or Class II renewable energy sources; 204
	271	+	(19) On and after January 1, 2024, not less than twenty-eight per cent 205
	272	+	of the total output or services of any such supplier or distribution 206 Governor's Bill No. 875
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284		-	~~(19) On and after January 1,~~ ~~2024, not less than twenty-eight per cent 205~~
285		-	~~of the total output or services of any such supplier or distribution 206~~
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286	278		company shall be generated from Class I renewable energy sources 207
287	279		and an additional four per cent of the total output or services shall be 208
288	280		from Class I or Class II renewable energy sources; 209
289	281		(20) On and after January 1, 2025, not less than thirty per cent of the 210
290	282		total output or services of any such supplier or distribution company 211
291	283		shall be generated from Class I renewable energy sources and an 212
292	284		additional four per cent of the total output or services shall be from 213
293	285		Class I or Class II renewable energy sources; 214
294	286		(21) On and after January 1, 2026, not less than thirty-two per cent of 215
295	287		the total output or services of any such supplier or distribution 216
296	288		company shall be generated from Class I renewable energy sources 217
297	289		and an additional four per cent of the total output or services shall be 218
298	290		from Class I or Class II renewable energy sources; 219
299	291		(22) On and after January 1, 2027, not less than thirty-four per cent 220
300	292		of the total output or services of any such supplier or distribution 221
301	293		company shall be generated from Class I renewable energy sources 222
302	294		and an additional four per cent of the total output or services shall be 223
303	295		from Class I or Class II renewable energy sources; 224
304	296		(23) On and after January 1, 2028, not less than thirty-six per cent of 225
305	297		the total output or services of any such supplier or distribution 226
306	298		company shall be generated from Class I renewable energy sources 227
307	299		and an additional four per cent of the total output or services shall be 228
308	300		from Class I or Class II renewable energy sources; 229
309	301		(24) On and after January 1, 2029, not less than thirty-eight per cent 230
310	302		of the total output or services of any such supplier or distribution 231
311	303		company shall be generated from Class I renewable energy sources 232
312	304		and an additional four per cent of the total output or services shall be 233
313	305		from Class I or Class II renewable energy sources; 234
314		-	(25) On and after January 1, 2030, not less than forty per cent of the 235 Bill No. 875
	306	+	(25) On and after January 1, 2030, not less than forty per cent of the 235
	307	+	total output or services of any such supplier or distribution company 236
	308	+	shall be generated from Class I renewable energy sources and an 237 Governor's Bill No. 875
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321		-	~~total output or services~~ of ~~any such supplier or distribution company 236~~
322		-	~~shall be generated from Class I renewable energy sources and an 237~~
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323	314		additional four per cent of the total output or services shall be from 238
324	315		Class I or Class II renewable energy sources. 239
325	316		This act shall take effect as follows and shall amend the following
326	317		sections:
327	318
328	319		Section 1 July 1, 2019 New section
329	320		Sec. 2 from passage 16a-3a
330	321		Sec. 3 July 1, 2019 16-245a(a)
331	322
332		-	ET Joint Favorable
	323	+	Statement of Purpose:
	324	+	To implement the Governor's budget recommendations.
	325	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	326	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	327	+	not underlined.]
333	328