LCO No. 543 1 of 6 General Assembly Governor's Bill No. 10 February Session, 2020 LCO No. 543 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 CONCERNING CE RTAIN RECOMMENDATION S REGARDING CLIMATE CHANGE. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 22a-174g of the general statutes is amended by 1 adding subsections (c) and (d) as follows (Effective October 1, 2020): 2 (NEW) (c) (1) On or before December 31, 2021, the Commissioner of 3 Energy and Environmental Protection shall assess the energy, 4 environmental and air quality impacts of adopting California's medium 5 and heavy duty vehicle emission standards. 6 (2) Pursuant to subdivision (1) of this subsection, if the commissioner 7 deems such adoption necessary to meet federal air quality standards or 8 state greenhouse gas reduction requirements, the commissioner may 9 adopt regulations, in accordance with the provisions of chapter 54, to 10 implement California's medium and heavy duty vehicle emission 11 Governor's Bill No. 10 LCO No. 543 2 of 6 standards and shall amend such regulations from time to time, in 12 accordance with changes to such standards. Such regulations may 13 incorporate by reference California's medium and heavy duty vehicle 14 emission standards established in final regulations issued by the 15 California Air Resources Board pursuant to Title 13 of the California 16 Code of Regulations and promulgated under the authority of Division 17 26 of the California Health and Safety Code, as may be amended from 18 time to time. The commissioner may enter into any agreement deemed 19 necessary to ensure the effective and efficient implementation of this 20 subsection. 21 (NEW) (d) In consultation with the Commissioner of Motor Vehicles 22 and in accordance with subsection (b) of section 14-164c, the 23 Commissioner of Energy and Environmental Protection may furnish the 24 Commissioner of Motor Vehicles with emission standards for all 25 medium and heavy duty motor vehicles for the purpose of establishing 26 inspection and maintenance requirements in accordance with said 27 subsection. The Commissioner of Energy and Environmental Protection 28 and the Commissioner of Motor Vehicles may enter into any agreement 29 deemed necessary to ensure the effective and efficient implementation 30 of this subsection, including, but not limited to, reciprocity agreements 31 with other states for medium and heavy duty motor vehicles moving in 32 interstate commerce. 33 Sec. 2. Subsection (a) of section 22a-200a of the general statutes is 34 repealed and the following is substituted in lieu thereof (Effective July 1, 35 2020): 36 (a) The state shall reduce the level of emissions of greenhouse gas: 37 (1) Not later than January 1, 2020, to a level at least ten per cent below 38 the level emitted in 1990; 39 (2) Not later than January 1, 2030, to a level at least forty-five per cent 40 below the level emitted in 2001; [and] 41 Governor's Bill No. 10 LCO No. 543 3 of 6 (3) Not later than January 1, 2040, to a level of zero per cent from 42 electric generation serving electric usage in the state; 43 [(3)] (4) Not later than January 1, 2050, to a level at least eighty per 44 cent below the level emitted in 2001; [.] and 45 [(4)] (5) All of the levels referenced in this subsection shall be 46 determined by the Commissioner of Energy and Environmental 47 Protection. 48 Sec. 3. (NEW) (Effective from passage) (a) The Commissioner of Energy 49 and Environmental Protection, in consultation with the procurement 50 manager identified in subsection (l) of section 16-2 of the general 51 statutes, the Office of Consumer Counsel and the Attorney General, 52 may, in coordination with other states in the control area of the regional 53 independent system operator, as defined in section 16-1 of the general 54 statutes, in coordination with states in a neighboring control area, or on 55 behalf of the state alone, solicit proposals for energy products or 56 benefits, associated attributes and associated transmission, or any 57 combination thereof, in one solicitation or multiple solicitations, from 58 any combination of the following resources: (1) Active demand response 59 measures, (2) passive demand response measures, including, but not 60 limited to, energy efficiency and load management, and (3) energy 61 storage systems. The commissioner may select proposals from such 62 resources that do not, annually, exceed three hundred thousand 63 megawatt hours of electricity in the aggregate. 64 (b) If an electric distribution company, as defined in section 16-1 of 65 the general statutes, submits a proposal, such electric distribution 66 company shall demonstrate that the electric demand reductions of the 67 proposal are in addition to the projected electric demand reductions of 68 the conservation and load management programs authorized pursuant 69 to section 16-245m of the general statutes. 70 (c) In making any selection of such proposals, the commissioner shall 71 consider factors, including, but not limited to, whether the proposal (1) 72 Governor's Bill No. 10 LCO No. 543 4 of 6 is in the best interest of ratepayers, (2) is consistent with the 73 requirements to reduce greenhouse gas emissions in accordance with 74 section 22a-200a of the general statutes, as amended by this act, and (3) 75 is consistent with the policy goals outlined in the Comprehensive 76 Energy Strategy adopted pursuant to section 16a-3d of the general 77 statutes and the Integrated Resources Plan adopted pursuant to section 78 16a-3a of the general statutes. 79 (d) The commissioner may direct the electric distribution companies 80 to enter into power purchase agreements for energy products and 81 associated attributes, associated transmission or any combination 82 thereof from resources selected pursuant to this section for periods of 83 not more than twenty years on behalf of all customers of the state's 84 electric distribution companies. 85 (e) Certificates issued by the New England Power Pool Generation 86 Information System for any Class III source procured by an electric 87 distribution company pursuant to this section may be: (1) Sold into the 88 New England Power Pool Generation Information System renewable 89 energy credit market to be used by any electric supplier or electric 90 distribution company to meet the requirements of section 16-245a of the 91 general statutes, provided the revenues from such sale are credited to 92 electric distribution company customers as described in this section; or 93 (2) retained by the electric distribution company to meet the 94 requirements of section 16-245a of the general statutes. In considering 95 whether to sell or retain such certificates, the company shall select the 96 option that is in the best interest of such company's ratepayers, as 97 directed by the Public Utilities Regulatory Authority. 98 (f) Any agreement entered into pursuant to this section shall be 99 subject to review and approval by the Public Utilities Regulatory 100 Authority, which review shall be completed not later than one hundred 101 twenty days after receipt by the authority. The authority shall review 102 and approve such agreement if it meets the criteria in the request for 103 proposals issued pursuant to subsection (a) of this section and is in the 104 Governor's Bill No. 10 LCO No. 543 5 of 6 best interest of ratepayers. If the authority does not issue a decision 105 within one hundred and twenty days after such filing, the agreement 106 shall be deemed approved. The net costs of any such agreement, 107 including costs incurred by the electric distribution companies under 108 the agreement and reasonable costs incurred by the electric distribution 109 companies in connection with the agreement, shall be recovered 110 through a fully reconciling component of electric rates for all customers 111 of electric distribution companies. Any net revenues from the sale of 112 products purchased in accordance with long-term contracts entered into 113 pursuant to this section shall be credited to customers through the same 114 fully reconciling rate component for all customers of the contracting 115 electric distribution company. 116 (g) The commissioner may hire consultants with expertise in 117 quantitative modeling of electric and gas markets to assist in 118 implementing this section, including, but not limited to, the evaluation 119 of proposals submitted pursuant to this section. All reasonable costs 120 associated with the commissioner's solicitation and review of proposals 121 pursuant to this section shall be recoverable through the same fully 122 reconciling rate component for all customers of the electric distribution 123 companies. Such costs shall be recoverable even if the commissioner 124 does not select any proposals pursuant to any solicitation issued 125 pursuant to this section. 126 (h) (1) Any dispute arising from a contract that is approved by the 127 authority pursuant to this section shall be brought to the authority. A 128 party may petition the authority for a declaratory ruling or make an 129 application for review pursuant to this subsection. Notwithstanding 130 subsection (a) of section 4-176 of the general statutes, the authority may 131 not, on its own motion, initiate a proceeding to review a contract entered 132 into pursuant to this subsection. 133 (2) The authority shall review such contract claims brought pursuant 134 to subdivision (1) of this subsection. The authority shall decide such 135 contract claims by issuing a declaratory ruling or a final decision in a 136 Governor's Bill No. 10 LCO No. 543 6 of 6 contested case proceeding, including ordering legal and equitable 137 contract remedies. Any party to the contract shall have the right to 138 appeal to the Superior Court from any such declaratory ruling or final 139 decision adjudicating such contract claims pursuant to this subsection. 140 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2020 22a-174g Sec. 2 July 1, 2020 22a-200a(a) Sec. 3 from passage New section Statement of Purpose: To implement the Governor's budget recommendations. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]