Connecticut 2020 Regular Session

Connecticut House Bill HB05227 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
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4	4	LCO No. 1646 1 of 6
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6	6	General Assembly Raised Bill No. 5227
7	7	February Session, 2020
8	8	LCO No. 1646
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10	10
11	11	Referred to Committee on ENERGY AND TECHNOLOGY
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14	14	Introduced by:
15	15	(ET)
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20	20	AN ACT CONCERNING DI STRIBUTED ENERGY RES OURCES
21	21	SYSTEM IMPROVEMENTS.
22	22	Be it enacted by the Senate and House of Representatives in General
23	23	Assembly convened:
24	24
25	25	Section 1. Section 16-244w of the general statutes is repealed and the 1
26	26	following is substituted in lieu thereof (Effective October 1, 2020): 2
27	27	(a) Notwithstanding subsection (a) of section 16-244e, each electric 3
28	28	distribution company, as defined in section 16-1, shall submit a proposal 4
29	29	or proposals to the Department of Energy and Environmental Protection 5
30	30	for a pilot program to build, own or operate grid-side system 6
31	31	enhancements, including, but not limited to, energy storage systems, as 7
32	32	defined in section 16-1, for the purpose of demonstrating and 8
33	33	investigating how distributed energy resources, as defined in section 16-9
34	34	1, can be reliably and efficiently integrated into the operation of the 10
35	35	electric distribution system in a manner that maximizes the value 11
36	36	provided to the electric grid, electric ratepayers and the public from 12
37	37	such resources. Such proposal shall complement and enhance the 13
38	38	programs, products and incentives available through the Connecticut 14
39	39	Green Bank and the Connecticut Energy Efficiency Fund, pursuant to 15 Raised Bill No. 5227
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43	43	LCO No. 1646 2 of 6
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45	45	sections 16-244r, 16-244s and 16-244t, and other similar programs that 16
46	46	support the deployment of distributed energy resources. 17
47	47	(b) The department and the Public Utilities Regulatory Authority 18
48	48	shall evaluate such proposals and may approve such proposals if such 19
49	49	proposals demonstrate: (1) How grid-side system enhancements, 20
50	50	including, but not limited to, energy storage systems, can be reliably and 21
51	51	cost-effectively integrated into the electric distribution system; and (2) 22
52	52	that such proposals maximize the value provided to ratepayers. The 23
53	53	department and authority may perform the evaluation jointly or 24
54	54	concurrently. Any such proposal [that is approved by the department 25
55	55	shall be subject to review and approval by the Public Utilities 26
56	56	Regulatory Authority, and] shall be approved by the authority if the 27
57	57	authority concludes that investment in such grid-side system 28
58	58	enhancement is reasonable, prudent and provides value to ratepayers. 29
59	59	(A) For any joint evaluation performed pursuant to this section, the 30
60	60	department and authority shall conduct one proceeding and develop 31
61	61	one administrative evidentiary record. The department and authority 32
62	62	may issue one joint decision or determination. Notwithstanding section 33
63	63	16-9b, the commissioner shall not be a party or participant in the joint 34
64	64	evaluation proceeding. 35
65	65	(B) For any concurrent evaluation performed pursuant to this section, 36
66	66	the department and authority shall each conduct a proceeding and may 37
67	67	develop one administrative evidentiary record. 38
68	68	(c) Each electric distribution company may enter into joint ownership 39
69	69	agreements, partnerships or other contractual agreements for services 40
70	70	with private entities to carry out the provisions of this section. The costs 41
71	71	incurred by the electric distribution companies pursuant to this section 42
72	72	shall be recovered from all customers of the contracting electric 43
73	73	distribution company through a fully reconciling component of electric 44
74	74	rates for all customers of electric distribution companies, until the 45
75	75	electric distribution company's next rate case, at which time such costs 46
76	76	and investments shall be recoverable through base distribution rates. 47 Raised Bill No. 5227
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80	80	LCO No. 1646 3 of 6
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82	82	(d) Not later than January 1, [2017] 2021, the department shall 48
83	83	evaluate such approved proposals pursuant to this section and submit 49
84	84	a report, in accordance with the provisions of section 11-4a, to the joint 50
85	85	standing committee of the General Assembly having cognizance of 51
86	86	matters relating to energy, regarding the performance, costs and 52
87	87	benefits associated with grid-side system enhancements, including, but 53
88	88	not limited to, energy storage systems procured pursuant to this section. 54
89	89	Sec. 2. (NEW) (Effective October 1, 2020) (a) For purposes of this 55
90	90	section, "anaerobic digestion facility" means a facility that obtained a 56
91	91	permit pursuant to section 22a-208a of the general statutes and produces 57
92	92	by-products that provide biogas derived from the decomposition of 58
93	93	farm-generated organic waste or source-separated organic material that 59
94	94	was processed through gas conditioning systems to remove impurities, 60
95	95	including, but not limited to, water, carbon dioxide and hydrogen 61
96	96	sulfide. 62
97	97	(b) The Commissioner of Energy and Environmental Protection, in 63
98	98	consultation with the Office of Consumer Counsel, the gas companies, 64
99	99	as defined in section 16-1 of the general statutes, and the Attorney 65
100	100	General, may solicit proposals, in one solicitation or multiple 66
101	101	solicitations, from anaerobic digestion facilities that will make biogas of 67
102	102	a quality suitable for injection, as determined by the department in 68
103	103	consultation with the gas companies, into the natural gas distribution 69
104	104	system in the state. The commissioner may select proposals from such 70
105	105	anaerobic digestion facilities that do not exceed by-product that is 71
106	106	generated by three hundred thousand tons of solid waste annually. 72
107	107	(c) In making a selection of such proposals, the commissioner shall 73
108	108	consider factors including, but not limited to, (1) whether the proposal 74
109	109	is in the best interest of natural gas ratepayers; (2) whether the proposal 75
110	110	promotes the policy goals outlined in the state-wide solid waste 76
111	111	management plan developed pursuant to section 22a-241a of the general 77
112	112	statutes; (3) any positive impacts on the state's economic development, 78
113	113	including any positive impacts on the state's agricultural industry; (4) 79
114	114	whether the proposal is consistent with the requirements to reduce 80 Raised Bill No. 5227
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118	118	LCO No. 1646 4 of 6
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120	120	greenhouse gas emissions in accordance with section 22a-200a of the 81
121	121	general statutes; (5) the characteristics of a relevant facility that produces 82
122	122	renewable natural gas; and (6) whether the proposal promotes natural 83
123	123	gas distribution system benefits. 84
124	124	(d) The commissioner may direct the gas companies to enter into gas 85
125	125	purchase agreements for such by-products selected pursuant to this 86
126	126	section for periods of not more than twenty years on behalf of all 87
127	127	customers of the state's gas companies. 88
128	128	(e) Any gas purchase agreement entered into pursuant to this section 89
129	129	shall be subject to review and approval by the Public Utilities 90
130	130	Regulatory Authority. Such review shall be completed not later than one 91
131	131	hundred twenty days after the date such agreement is filed with the 92
132	132	authority. The authority shall review and approve such gas purchase 93
133	133	agreement if it meets the solicitation proposal criteria pursuant to this 94
134	134	section. 95
135	135	(f) (1) The net costs of any such gas purchase agreement, including 96
136	136	costs incurred by the gas companies under the gas purchase agreement 97
137	137	and reasonable costs incurred by the gas companies in connection with 98
138	138	the gas purchase agreement, shall be recovered from all customers of 99
139	139	such company through the purchased gas adjustment clause pursuant 100
140	140	to section 16-19b of the general statutes. Any net revenue from the sale 101
141	141	of products purchased in accordance with the gas purchase agreement 102
142	142	entered into pursuant to this section shall be credited to customers 103
143	143	through the same fully reconciling rate component for all customers of 104
144	144	the contracting gas company. Any net costs or net revenues, as 105
145	145	applicable, of any such gas purchase agreement shall be apportioned in 106
146	146	proportion to the revenues of each contracting gas company as reported 107
147	147	to the authority pursuant to section 16-49 of the general statutes for the 108
148	148	most recent fiscal year. 109
149	149	(2) The gas companies may seek to recover any prudently incurred 110
150	150	costs related to constructing, operating and maintaining the 111
151	151	infrastructure associated with the processing, interconnection or 112 Raised Bill No. 5227
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155	155	LCO No. 1646 5 of 6
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157	157	distribution of by-products purchased under any such gas purchase 113
158	158	agreement, if such costs are identified and approved by the authority at 114
159	159	the time the authority approves any such gas purchase agreement, in 115
160	160	any existing rate tracking mechanism for the recovery of natural gas 116
161	161	infrastructure investments, or, if no mechanism currently exists, a newly 117
162	162	established rate tracking mechanism established by the authority. 118
163	163	(g) A gas company may elect to (1) use any renewable natural gas 119
164	164	procured under this section to meet the needs of its customers, or (2) sell 120
165	165	any such renewable natural gas into applicable markets or through 121
166	166	bilateral contracts with third parties with the net benefits or costs 122
167	167	reflected in the purchased gas adjustment clause pursuant to section 16-123
168	168	19b of the general statutes. 124
169	169	(h) The commissioner may retain consultants to assist in 125
170	170	implementing this section, including, but not limited to, the evaluation 126
171	171	of proposals submitted pursuant to this section. All reasonable costs 127
172	172	associated with the commissioner's solicitation and review of proposals 128
173	173	pursuant to this section shall be recoverable through the same fully 129
174	174	reconciling rate component for all customers of the gas companies. Such 130
175	175	costs shall be recoverable even if the commissioner does not select any 131
176	176	solicitation proposals pursuant to this section. 132
177	177	(i) (1) Any dispute arising from a contract that is approved by the 133
178	178	authority pursuant to this section shall be brought to the authority. A 134
179	179	party may petition the authority for a declaratory ruling or make an 135
180	180	application for review pursuant to this subsection. Notwithstanding 136
181	181	subsection (a) of section 4-176 of the general statutes, the authority may 137
182	182	not on its own motion initiate a proceeding to review a contract entered 138
183	183	into pursuant to this subsection. 139
184	184	(2) The authority shall review any contract dispute brought pursuant 140
185	185	to subdivision (1) of this subsection. The authority shall decide any such 141
186	186	contract dispute by issuing a declaratory ruling or a final decision in a 142
187	187	contested case proceeding, and may order legal and equitable remedies. 143
188	188	Any party to the contract shall have the right to appeal to the Superior 144 Raised Bill No. 5227
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192	192	LCO No. 1646 6 of 6
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194	194	Court from any such declaratory ruling or final decision issued 145
195	195	pursuant to this section. 146
196	196	This act shall take effect as follows and shall amend the following
197	197	sections:
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199	199	Section 1 October 1, 2020 16-244w
200	200	Sec. 2 October 1, 2020 New section
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202	202	Statement of Purpose:
203	203	To authorize the Department of Energy and Environmental Protection
204	204	and the Public Utilities Regulatory Authority to perform joint or
205	205	concurrent evaluations of grid-side system enhancement proposals, and
206	206	to provide the department authority to procure renewable natural gas
207	207	from anaerobic digestion facilities for injection into the natural gas
208	208	distribution system.
209	209	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
210	210	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
211	211	underlined.]
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