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General Assembly Governor's Bill No. 875
January Session, 2019
LCO No. 4513
Referred to Committee on ENERGY AND TECHNOLOGY
Introduced by:
SEN. LOONEY, 11
th
Dist.
SEN. DUFF, 25
th
Dist.
REP. ARESIMOWICZ, 30
th
Dist.
REP. RITTER M., 1
st
Dist.
AN ACT EXPANDING CON NECTICUT'S OFFSHORE WIND ENERGY
PORTFOLIO.
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 Bill No. 875
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16a-3a of the general statutes, as amended by this act. In developing 14
any solicitations pursuant to this section, the commissioner shall 15
include requirements for contract commitments in selected bids that 16
(1) require payment of not less than the prevailing wage, as described 17
in section 31-53 of the general statutes, for laborers, workmen and 18
mechanics performing construction activities within the United States 19
with respect to the project, and (2) require selected bidders to engage 20
in a good faith negotiation of a project labor agreement. Any 21
solicitation issued pursuant to this section shall specify the minimum 22
terms that such project labor agreements shall address. 23
(b) In making any selection of such proposals, the commissioner 24
shall consider factors, including, but not limited to, (1) whether the 25
proposal is in the best interest of ratepayers, including, but not limited 26
to, the delivered price of such sources, (2) whether the proposal 27
promotes electric distribution system reliability, including during 28
winter peak demand, (3) any positive impacts on the state's economic 29
development, (4) whether the proposal is consistent with the 30
requirements to reduce greenhouse gas emissions in accordance with 31
section 22a-200a of the general statutes, and (5) whether the proposal is 32
consistent with the policy goals outlined in the Comprehensive Energy 33
Strategy adopted pursuant to section 16a-3d of the general statutes and 34
the Integrated Resources Plan adopted pursuant to section 16a-3a of 35
the general statutes, as amended by this act. In considering whether a 36
proposal has any positive impacts on the state's economic 37
development, the commissioner shall consult with the Commissioner 38
of Economic and Community Development. The commissioner may 39
select proposals from such resources to meet up to fifteen per cent of 40
the load distributed by the state's electric distribution companies. 41
(c) The commissioner may direct the electric distribution companies 42
to enter into power purchase agreements for energy, capacity and 43
environmental attributes, or any combination thereof, for periods of 44
not more than twenty years on behalf of all customers of the state's 45
electric distribution companies. Certificates issued by the New 46 Bill No. 875
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England Power Pool Generation Information System for any Class I 47
renewable energy sources procured by an electric distribution 48
company pursuant to this section may be: (1) Sold into the New 49
England Power Pool Generation Information System renewable energy 50
credit market to be used by any electric supplier or electric distribution 51
company to meet the requirements of section 16-245a of the general 52
statutes, as amended by this act, provided the revenues from such sale 53
are credited to electric distribution company customers as described in 54
this section; or (2) retained by the electric distribution company to 55
meet the requirements of section 16-245a of the general statutes, as 56
amended by this act. In considering whether to sell or retain such 57
certificates, the company shall select the option that is in the best 58
interest of such company's ratepayers. 59
(d) Any agreement entered into pursuant to this section shall be 60
subject to review and approval by the Public Utilities Regulatory 61
Authority, which review shall be completed not later than one 62
hundred twenty days after the date on which such agreement is filed 63
with the authority. The authority shall approve agreements that it 64
determines (1) provide for the delivery of adequate and reliable 65
products and services, for which there is a clear public need, at a just 66
and reasonable price, (2) are prudent and cost effective, and (3) are 67
between an electric distribution company and a respondent to the 68
solicitation that has the technical, financial and managerial capabilities 69
to perform pursuant to such agreement. The net costs of any such 70
agreement, including costs incurred by the electric distribution 71
companies under the agreement and reasonable costs incurred by the 72
electric distribution companies in connection with the agreement, shall 73
be recovered through a fully reconciling component of electric rates for 74
all customers of electric distribution companies. Any net revenues 75
from the sale of products purchased in accordance with long-term 76
contracts entered into pursuant to this section shall be credited to 77
customers through the same fully reconciling rate component for all 78
customers of the contracting electric distribution company. 79 Bill No. 875
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Sec. 2. Section 16a-3a of the general statutes is amended by adding 80
subsection (j) as follows (Effective from passage): 81
(NEW) (j) For the Integrated Resources Plan next approved after 82
January 1, 2019, the department shall determine (1) the quantity of 83
energy the Commissioner of Energy and Environmental Protection 84
may seek in any solicitation or solicitations of proposals made 85
pursuant to section 1 of this act, provided the quantity of energy 86
sought in any such solicitations in the aggregate shall not exceed 87
fifteen per cent of the load distributed by the state's electric 88
distribution companies; and (2) the timing and schedule of any 89
solicitation or solicitations of proposals made pursuant to section 1 of 90
this act. Such determinations shall be based on factors including, but 91
not limited to, electricity system needs identified by the Integrated 92
Resources Plan, including, but not limited to, capacity, winter 93
reliability, progress in meeting the goals in the Global Warming 94
Solutions Act pursuant to section 22a-200a, the priorities of the 95
Comprehensive Energy Strategy adopted pursuant to section 16a-3d, 96
positive impacts on the state's economic development, opportunities to 97
coordinate procurement with other states, forecasted trends in 98
technology costs and impacts on the state's ratepayers. 99
Sec. 3. Subsection (a) of section 16-245a of the general statutes is 100
repealed and the following is substituted in lieu thereof (Effective July 101
1, 2019): 102
(a) Subject to any modifications required by the Public Utilities 103
Regulatory Authority for retiring renewable energy certificates on 104
behalf of all electric ratepayers pursuant to subsection (h) of this 105
section and sections 16a-3f, 16a-3g, 16a-3h, 16a-3i, 16a-3j, [and] 16a-3m 106
and section 1 of this act, an electric supplier and an electric distribution 107
company providing standard service or supplier of last resort service, 108
pursuant to section 16-244c, shall demonstrate: 109
(1) On and after January 1, 2006, that not less than two per cent of 110
the total output or services of any such supplier or distribution 111 Bill No. 875
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company shall be generated from Class I renewable energy sources 112
and an additional three per cent of the total output or services shall be 113
from Class I or Class II renewable energy sources; 114
(2) On and after January 1, 2007, not less than three and one-half per 115
cent of the total output or services of any such supplier or distribution 116
company shall be generated from Class I renewable energy sources 117
and an additional three per cent of the total output or services shall be 118
from Class I or Class II renewable energy sources; 119
(3) On and after January 1, 2008, not less than five per cent of the 120
total output or services of any such supplier or distribution company 121
shall be generated from Class I renewable energy sources and an 122
additional three per cent of the total output or services shall be from 123
Class I or Class II renewable energy sources; 124
(4) On and after January 1, 2009, not less than six per cent of the 125
total output or services of any such supplier or distribution company 126
shall be generated from Class I renewable energy sources and an 127
additional three per cent of the total output or services shall be from 128
Class I or Class II renewable energy sources; 129
(5) On and after January 1, 2010, not less than seven per cent of the 130
total output or services of any such supplier or distribution company 131
shall be generated from Class I renewable energy sources and an 132
additional three per cent of the total output or services shall be from 133
Class I or Class II renewable energy sources; 134
(6) On and after January 1, 2011, not less than eight per cent of the 135
total output or services of any such supplier or distribution company 136
shall be generated from Class I renewable energy sources and an 137
additional three per cent of the total output or services shall be from 138
Class I or Class II renewable energy sources; 139
(7) On and after January 1, 2012, not less than nine per cent of the 140
total output or services of any such supplier or distribution company 141
shall be generated from Class I renewable energy sources and an 142 Bill No. 875
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additional three per cent of the total output or services shall be from 143
Class I or Class II renewable energy sources; 144
(8) On and after January 1, 2013, not less than ten per cent of the 145
total output or services of any such supplier or distribution company 146
shall be generated from Class I renewable energy sources and an 147
additional three per cent of the total output or services shall be from 148
Class I or Class II renewable energy sources; 149
(9) On and after January 1, 2014, not less than eleven per cent of the 150
total output or services of any such supplier or distribution company 151
shall be generated from Class I renewable energy sources and an 152
additional three per cent of the total output or services shall be from 153
Class I or Class II renewable energy sources; 154
(10) On and after January 1, 2015, not less than twelve and one-half 155
per cent of the total output or services of any such supplier or 156
distribution company shall be generated from Class I renewable 157
energy sources and an additional three per cent of the total output or 158
services shall be from Class I or Class II renewable energy sources; 159
(11) On and after January 1, 2016, not less than fourteen per cent of 160
the total output or services of any such supplier or distribution 161
company shall be generated from Class I renewable energy sources 162
and an additional three per cent of the total output or services shall be 163
from Class I or Class II renewable energy sources; 164
(12) On and after January 1, 2017, not less than fifteen and one-half 165
per cent of the total output or services of any such supplier or 166
distribution company shall be generated from Class I renewable 167
energy sources and an additional three per cent of the total output or 168
services shall be from Class I or Class II renewable energy sources; 169
(13) On and after January 1, 2018, not less than seventeen per cent of 170
the total output or services of any such supplier or distribution 171
company shall be generated from Class I renewable energy sources 172
and an additional four per cent of the total output or services shall be 173 Bill No. 875
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from Class I or Class II renewable energy sources; 174
(14) On and after January 1, 2019, not less than nineteen and one-175
half per cent of the total output or services of any such supplier or 176
distribution company shall be generated from Class I renewable 177
energy sources and an additional four per cent of the total output or 178
services shall be from Class I or Class II renewable energy sources; 179
(15) On and after January 1, 2020, not less than twenty-one per cent 180
of the total output or services of any such supplier or distribution 181
company shall be generated from Class I renewable energy sources 182
and an additional four per cent of the total output or services shall be 183
from Class I or Class II renewable energy sources, except that for any 184
electric supplier that has entered into or renewed a retail electric 185
supply contract on or before May 24, 2018, on and after January 1, 186
2020, not less than twenty per cent of the total output or services of any 187
such electric supplier shall be generated from Class I renewable energy 188
sources; 189
(16) On and after January 1, 2021, not less than twenty-two and one-190
half per cent of the total output or services of any such supplier or 191
distribution company shall be generated from Class I renewable 192
energy sources and an additional four per cent of the total output or 193
services shall be from Class I or Class II renewable energy sources; 194
(17) On and after January 1, 2022, not less than twenty-four per cent 195
of the total output or services of any such supplier or distribution 196
company shall be generated from Class I renewable energy sources 197
and an additional four per cent of the total output or services shall be 198
from Class I or Class II renewable energy sources; 199
(18) On and after January 1, 2023, not less than twenty-six per cent 200
of the total output or services of any such supplier or distribution 201
company shall be generated from Class I renewable energy sources 202
and an additional four per cent of the total output or services shall be 203
from Class I or Class II renewable energy sources; 204 Bill No. 875
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(19) On and after January 1, 2024, not less than twenty-eight per cent 205
of the total output or services of any such supplier or distribution 206
company shall be generated from Class I renewable energy sources 207
and an additional four per cent of the total output or services shall be 208
from Class I or Class II renewable energy sources; 209
(20) On and after January 1, 2025, not less than thirty per cent of the 210
total output or services of any such supplier or distribution company 211
shall be generated from Class I renewable energy sources and an 212
additional four per cent of the total output or services shall be from 213
Class I or Class II renewable energy sources; 214
(21) On and after January 1, 2026, not less than thirty-two per cent of 215
the total output or services of any such supplier or distribution 216
company shall be generated from Class I renewable energy sources 217
and an additional four per cent of the total output or services shall be 218
from Class I or Class II renewable energy sources; 219
(22) On and after January 1, 2027, not less than thirty-four per cent 220
of the total output or services of any such supplier or distribution 221
company shall be generated from Class I renewable energy sources 222
and an additional four per cent of the total output or services shall be 223
from Class I or Class II renewable energy sources; 224
(23) On and after January 1, 2028, not less than thirty-six per cent of 225
the total output or services of any such supplier or distribution 226
company shall be generated from Class I renewable energy sources 227
and an additional four per cent of the total output or services shall be 228
from Class I or Class II renewable energy sources; 229
(24) On and after January 1, 2029, not less than thirty-eight per cent 230
of the total output or services of any such supplier or distribution 231
company shall be generated from Class I renewable energy sources 232
and an additional four per cent of the total output or services shall be 233
from Class I or Class II renewable energy sources; 234
(25) On and after January 1, 2030, not less than forty per cent of the 235 Bill No. 875
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total output or services of any such supplier or distribution company 236
shall be generated from Class I renewable energy sources and an 237
additional four per cent of the total output or services shall be from 238
Class I or Class II renewable energy sources. 239
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2019 New section
Sec. 2 from passage 16a-3a
Sec. 3 July 1, 2019 16-245a(a)
ET Joint Favorable