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General Assembly Raised Bill No. 5118
February Session, 2022
LCO No. 1165
Referred to Committee on ENERGY AND TECHNOLOGY
Introduced by:
(ET)
AN ACT CONCERNING WASTE MANAGEMENT AND ANAEROBIC
DIGESTION.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsection (a) of section 16-245a of the general statutes is 1
repealed and the following is substituted in lieu thereof (Effective October 2
1, 2022): 3
(a) Subject to any modifications required by the Public Utilities 4
Regulatory Authority for retiring renewable energy certificates on 5
behalf of all electric ratepayers pursuant to subsection (h) of this section 6
and sections 16a-3f, 16a-3g, 16a-3h, 16a-3i, 16a-3j, 16a-3m and 16a-3n, an 7
electric supplier and an electric distribution company providing 8
standard service or supplier of last resort service, pursuant to section 16-9
244c, shall demonstrate: 10
(1) On and after January 1, 2006, that not less than two per cent of the 11
total output or services of any such supplier or distribution company 12
shall be generated from Class I renewable energy sources and an 13
additional three per cent of the total output or services shall be from 14 Raised Bill No. 5118
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Class I or Class II renewable energy sources; 15
(2) On and after January 1, 2007, not less than three and one-half per 16
cent of the total output or services of any such supplier or distribution 17
company shall be generated from Class I renewable energy sources and 18
an additional three per cent of the total output or services shall be from 19
Class I or Class II renewable energy sources; 20
(3) On and after January 1, 2008, not less than five per cent of the total 21
output or services of any such supplier or distribution company shall be 22
generated from Class I renewable energy sources and an additional 23
three per cent of the total output or services shall be from Class I or Class 24
II renewable energy sources; 25
(4) On and after January 1, 2009, not less than six per cent of the total 26
output or services of any such supplier or distribution company shall be 27
generated from Class I renewable energy sources and an additional 28
three per cent of the total output or services shall be from Class I or Class 29
II renewable energy sources; 30
(5) On and after January 1, 2010, not less than seven per cent of the 31
total output or services of any such supplier or distribution company 32
shall be generated from Class I renewable energy sources and an 33
additional three per cent of the total output or services shall be from 34
Class I or Class II renewable energy sources; 35
(6) On and after January 1, 2011, not less than eight per cent of the 36
total output or services of any such supplier or distribution company 37
shall be generated from Class I renewable energy sources and an 38
additional three per cent of the total output or services shall be from 39
Class I or Class II renewable energy sources; 40
(7) On and after January 1, 2012, not less than nine per cent of the total 41
output or services of any such supplier or distribution company shall be 42
generated from Class I renewable energy sources and an additional 43
three per cent of the total output or services shall be from Class I or Class 44
II renewable energy sources; 45 Raised Bill No. 5118
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(8) On and after January 1, 2013, not less than ten per cent of the total 46
output or services of any such supplier or distribution company shall be 47
generated from Class I renewable energy sources and an additional 48
three per cent of the total output or services shall be from Class I or Class 49
II renewable energy sources; 50
(9) On and after January 1, 2014, not less than eleven per cent of the 51
total output or services of any such supplier or distribution company 52
shall be generated from Class I renewable energy sources and an 53
additional three per cent of the total output or services shall be from 54
Class I or Class II renewable energy sources; 55
(10) On and after January 1, 2015, not less than twelve and one-half 56
per cent of the total output or services of any such supplier or 57
distribution company shall be generated from Class I renewable energy 58
sources and an additional three per cent of the total output or services 59
shall be from Class I or Class II renewable energy sources; 60
(11) On and after January 1, 2016, not less than fourteen per cent of 61
the total output or services of any such supplier or distribution company 62
shall be generated from Class I renewable energy sources and an 63
additional three per cent of the total output or services shall be from 64
Class I or Class II renewable energy sources; 65
(12) On and after January 1, 2017, not less than fifteen and one-half 66
per cent of the total output or services of any such supplier or 67
distribution company shall be generated from Class I renewable energy 68
sources and an additional three per cent of the total output or services 69
shall be from Class I or Class II renewable energy sources; 70
(13) On and after January 1, 2018, not less than seventeen per cent of 71
the total output or services of any such supplier or distribution company 72
shall be generated from Class I renewable energy sources and an 73
additional four per cent of the total output or services shall be from Class 74
I or Class II renewable energy sources; 75
(14) On and after January 1, 2019, not less than nineteen and one-half 76 Raised Bill No. 5118
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per cent of the total output or services of any such supplier or 77
distribution company shall be generated from Class I renewable energy 78
sources and an additional four per cent of the total output or services 79
shall be from Class I or Class II renewable energy sources; 80
(15) On and after January 1, 2020, not less than twenty-one per cent 81
of the total output or services of any such supplier or distribution 82
company shall be generated from Class I renewable energy sources and 83
an additional four per cent of the total output or services shall be from 84
Class I or Class II renewable energy sources, except that for any electric 85
supplier that has entered into or renewed a retail electric supply contract 86
on or before May 24, 2018, on and after January 1, 2020, not less than 87
twenty per cent of the total output or services of any such electric 88
supplier shall be generated from Class I renewable energy sources; 89
(16) On and after January 1, 2021, not less than twenty-two and one-90
half per cent of the total output or services of any such supplier or 91
distribution company shall be generated from Class I renewable energy 92
sources and an additional four per cent of the total output or services 93
shall be from Class I or Class II renewable energy sources; 94
(17) On and after January 1, 2022, not less than twenty-four per cent 95
of the total output or services of any such supplier or distribution 96
company shall be generated from Class I renewable energy sources and 97
an additional four per cent of the total output or services shall be from 98
Class I or Class II renewable energy sources; 99
(18) On and after January 1, 2023, not less than twenty-six per cent of 100
the total output or services of any such supplier or distribution company 101
shall be generated from Class I renewable energy sources and an 102
additional four per cent of the total output or services shall be from 103
[Class I or] Class II renewable energy sources; 104
(19) On and after January 1, 2024, not less than twenty-eight per cent 105
of the total output or services of any such supplier or distribution 106
company shall be generated from Class I renewable energy sources and 107 Raised Bill No. 5118
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an additional four per cent of the total output or services shall be from 108
[Class I or] Class II renewable energy sources; 109
(20) On and after January 1, 2025, not less than thirty per cent of the 110
total output or services of any such supplier or distribution company 111
shall be generated from Class I renewable energy sources and an 112
additional four per cent of the total output or services shall be from 113
[Class I or] Class II renewable energy sources; 114
(21) On and after January 1, 2026, not less than thirty-two per cent of 115
the total output or services of any such supplier or distribution company 116
shall be generated from Class I renewable energy sources and an 117
additional four per cent of the total output or services shall be from 118
[Class I or] Class II renewable energy sources; 119
(22) On and after January 1, 2027, not less than thirty-four per cent of 120
the 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 four per cent of the total output or services shall be from 123
[Class I or] Class II renewable energy sources; 124
(23) On and after January 1, 2028, not less than thirty-six per cent of 125
the 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 four per cent of the total output or services shall be from 128
[Class I or] Class II renewable energy sources; 129
(24) On and after January 1, 2029, not less than thirty-eight per cent 130
of the total output or services of any such supplier or distribution 131
company shall be generated from Class I renewable energy sources and 132
an additional four per cent of the total output or services shall be from 133
[Class I or] Class II renewable energy sources; 134
(25) On and after January 1, 2030, not less than forty 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 four per cent of the total output or services shall be from 138 Raised Bill No. 5118
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[Class I or] Class II renewable energy sources. 139
Sec. 2. Subdivision (1) of subsection (h) of section 16-244c of the 140
general statutes is repealed and the following is substituted in lieu 141
thereof (Effective October 1, 2022): 142
(h) (1) Notwithstanding the provisions of subsection (b) of this 143
section regarding an alternative standard service option, an electric 144
distribution company providing standard service, supplier of last resort 145
service or back-up electric generation service in accordance with this 146
section shall contract with its wholesale suppliers to comply with the 147
renewable portfolio standards. The Public Utilities Regulatory 148
Authority shall annually conduct an uncontested proceeding in order to 149
determine whether the electric distribution company's wholesale 150
suppliers met the renewable portfolio standards during the preceding 151
year. On or before December 31, 2013, the authority shall issue a decision 152
on any such proceeding for calendar years up to and including 2012, for 153
which a decision has not already been issued. Not later than December 154
31, 2014, and annually thereafter, the authority shall, following such 155
proceeding, issue a decision as to whether the electric distribution 156
company's wholesale suppliers met the renewable portfolio standards 157
during the preceding year. An electric distribution company shall 158
include a provision in its contract with each wholesale supplier that 159
requires the wholesale supplier to pay the electric distribution company 160
an amount of: (A) For calendar years up to and including calendar year 161
2017, five and one-half cents per kilowatt hour if the wholesale supplier 162
fails to comply with the renewable portfolio standards during the 163
subject annual period, (B) for calendar years commencing on January 1, 164
2018, up to and including the calendar year commencing on January 1, 165
2020, five and one-half cents per kilowatt hour if the wholesale supplier 166
fails to comply with the renewable portfolio standards during the 167
subject annual period for Class I renewable energy sources, and two and 168
one-half cents per kilowatt hour if the wholesale supplier fails to comply 169
with the renewable portfolio standards during the subject annual period 170
for Class II renewable energy sources, and (C) for calendar years 171 Raised Bill No. 5118
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commencing on and after January 1, 2021, four cents per kilowatt hour 172
if the wholesale supplier fails to comply with the renewable portfolio 173
standards during the subject annual period for Class I renewable energy 174
sources, and two and one-half cents per kilowatt hour if the wholesale 175
supplier fails to comply with the renewable portfolio standards during 176
the subject annual period for Class II renewable energy sources. The 177
electric distribution company shall promptly transfer any payment 178
received from the wholesale supplier for the failure to meet the 179
renewable portfolio standards to the Clean Energy Fund for the 180
development of Class I renewable energy sources, provided, on and 181
after June 5, 2013, any such payment shall be refunded to ratepayers by 182
using such payment to offset the costs to all customers of electric 183
distribution companies of the costs of contracts and tariffs entered into 184
pursuant to sections 16-244r, 16-244t and 16-244z, except that, on or after 185
January 1, 2023, any such payment that is attributable to a failure to 186
comply with the Class II renewable portfolio standards shall be 187
deposited in the sustainable materials management account established 188
pursuant to section 5 of this act. Any excess amount remaining from 189
such payment shall be applied to reduce the costs of contracts entered 190
into pursuant to subdivision (2) of this subsection, and if any excess 191
amount remains, such amount shall be applied to reduce costs collected 192
through nonbypassable, federally mandated congestion charges, as 193
defined in section 16-1. 194
Sec. 3. Subsection (k) of section 16-245 of the 2022 supplement to the 195
general statutes is repealed and the following is substituted in lieu 196
thereof (Effective October 1, 2022): 197
(k) Any licensee who fails to comply with a license condition or who 198
violates any provision of this section, except for the renewable portfolio 199
standards contained in subsection (g) of this section, shall be subject to 200
civil penalties by the Public Utilities Regulatory Authority in accordance 201
with section 16-41, including direction that a portion of the civil penalty 202
be paid to a nonprofit agency engaged in energy assistance programs 203
named by the authority in its decision or notice of violation, the 204 Raised Bill No. 5118
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suspension or revocation of such license and a prohibition on accepting 205
new customers following a hearing that is conducted as a contested case 206
in accordance with chapter 54. Notwithstanding the provisions of 207
subsection (b) of section 16-244c regarding an alternative transitional 208
standard offer option or an alternative standard service option, the 209
authority shall require a payment by a licensee that fails to comply with 210
the renewable portfolio standards in accordance with subdivision (4) of 211
subsection (g) of this section in the amount of: (1) For calendar years up 212
to and including calendar year 2017, five and one-half cents per kilowatt 213
hour, (2) for calendar years commencing on January 1, 2018, and up to 214
and including the calendar year commencing on January 1, 2020, five 215
and one-half cents per kilowatt hour if the licensee fails to comply with 216
the renewable portfolio standards during the subject annual period for 217
Class I renewable energy sources, and two and one-half cents per 218
kilowatt hour if the licensee fails to comply with the renewable portfolio 219
standards during the subject annual period for Class II renewable 220
energy sources, and (3) for calendar years commencing on and after 221
January 1, 2021, four cents per kilowatt hour if the licensee fails to 222
comply with the renewable portfolio standards during the subject 223
annual period for Class I renewable energy sources, and two and one-224
half cents per kilowatt hour if the licensee fails to comply with the 225
renewable portfolio standards during the subject annual period for 226
Class II renewable energy sources. On or before December 31, 2013, the 227
authority shall issue a decision, following an uncontested proceeding, 228
on whether any licensee has failed to comply with the renewable 229
portfolio standards for calendar years up to and including 2012, for 230
which a decision has not already been issued. On and after June 5, 2013, 231
the Public Utilities Regulatory Authority shall annually conduct an 232
uncontested proceeding in order to determine whether any licensee has 233
failed to comply with the renewable portfolio standards during the 234
preceding year. Not later than December 31, 2014, and annually 235
thereafter, the authority shall, following such proceeding, issue a 236
decision as to whether the licensee has failed to comply with the 237
renewable portfolio standards during the preceding year. The authority 238
shall allocate such payment to the Clean Energy Fund for the 239 Raised Bill No. 5118
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development of Class I renewable energy sources, provided, on and 240
after June 5, 2013, any such payment shall be refunded to ratepayers by 241
using such payment to offset the costs to all customers of electric 242
distribution companies of the costs of contracts and tariffs entered into 243
pursuant to sections 16-244r, 16-244t and section 16-244z, except that, on 244
and after January 1, 2023, any such payment that is attributable to a 245
failure to comply with the Class II renewable portfolio standards shall 246
be deposited in the sustainable materials management account 247
established pursuant to section 5 of this act. Any excess amount 248
remaining from such payment shall be applied to reduce the costs of 249
contracts entered into pursuant to subdivision (2) of subsection (j) of 250
section 16-244c, and if any excess amount remains, such amount shall be 251
applied to reduce costs collected through nonbypassable, federally 252
mandated congestion charges, as defined in section 16-1. 253
Sec. 4. Subsection (a) of section 16a-3i of the general statutes is 254
repealed and the following is substituted in lieu thereof (Effective October 255
1, 2022): 256
(a) During the calendar year commencing January 1, 2014, and 257
continuing each calendar year thereafter, if alternative compliance 258
payments pursuant to subsection [(j)] (h) of section 16-244c or subsection 259
(k) of section 16-245 are made for failure to meet the renewable portfolio 260
standards, there shall be a presumption for the calendar year the 261
alternative compliance payments are made that there is an insufficient 262
supply of Class I renewable energy sources, as defined in section 16-1, 263
for electric suppliers or electric distribution companies to comply with 264
the requirements of section 16-245a. 265
Sec. 5. (NEW) (Effective October 1, 2022) (a) There is established an 266
account to be known as the sustainable materials management account 267
which shall be a separate, nonlapsing account within the General Fund. The 268
account shall contain moneys collected by the alternative compliance payment 269
for Class II renewable portfolio standards pursuant to subsection (h) of section 270
16-244c of the general statutes, as amended by this act, and subsection (k) of 271
section 16-245 of the general statutes, as amended by this act. The 272 Raised Bill No. 5118
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Commissioner of Energy and Environmental Protection shall expend moneys 273
from the account for the purposes of the program established under this 274
section. 275
(b) On and after January 1, 2023, the Commissioner of Energy and 276
Environmental Protection shall establish and administer a sustainable 277
materials management program to support solid waste reduction in the state 278
through the provision of funding from the sustainable materials management 279
account for purposes, including, but not limited to, grants, revolving loans, 280
technical assistance, consulting services and waste characterization studies, to 281
support programs and projects implemented by entities, including, but not 282
limited to, municipalities, nonprofits and regional waste authorities. Such 283
programs and projects shall promote affordable, sustainable and self-sufficient 284
management of waste within the state by reducing solid waste generation or 285
diverting solid waste from disposal, consistent with the state-wide solid waste 286
management plan established pursuant to section 22a-228 of the general 287
statutes. 288
(c) Not later than January 1, 2024, and annually thereafter, the Department 289
of Energy and Environmental Protection shall submit a report, in accordance 290
with the provisions of section 11-4a of the general statutes, to the joint standing 291
committees of the General Assembly having cognizance of matters relating to 292
the environment and energy and technology detailing the expenditures of any 293
funds disbursed from the sustainable materials management account 294
established in subsection (a) of this section and the outcomes associated with 295
such expenditures. 296
Sec. 6. (NEW) (Effective October 1, 2022) (a) The Commissioner of Energy and 297
Environmental Protection, in consultation with the Office of Consumer 298
Counsel and the Attorney General, may solicit proposals for the supply of 299
biogas for injection into the natural gas distribution systems in the state, in one 300
solicitation or multiple solicitations, from anaerobic digestion facilities that 301
have obtained a permit pursuant to section 22a-208a of the general statutes and 302
produce biogas derived from the decomposition of farm-generated organic 303
waste or source-separated organic material. The commissioner may select 304
proposals from such anaerobic digestion facilities that produce biogas from 305
not more than three hundred thousand tons of organic waste annually. 306
(b) In making any selection of such proposals, the commissioner shall 307 Raised Bill No. 5118
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consider factors, including, but not limited to, (1) whether the proposal is in 308
the best interest of natural gas ratepayers, (2) whether the proposal promotes 309
the policy goals outlined in the state-wide solid waste management plan 310
developed pursuant to section 22a-241a of the general statutes, (3) any positive 311
impacts on the state's economic development, including any positive impacts 312
on the state's agricultural industry, (4) whether the proposal is consistent with 313
the requirements to reduce greenhouse gas emissions in accordance with 314
section 22a-200a of the general statutes, (5) the characteristics of a relevant 315
facility that produces renewable natural gas, including, but not limited to, 316
whether the proposed gas conditioning system or systems and the biogas 317
complies with the interconnection standards developed in accordance with 318
section 18 of public act 19-35, and (6) whether the proposal promotes natural 319
gas distribution system benefits. 320
(c) The commissioner may direct the gas companies, as defined in section 321
16-1 of the general statutes, to enter into gas purchase agreements with biogas 322
suppliers selected pursuant to this section for biogas and associated attributes 323
for periods of not more than twenty years on behalf of all customers of gas 324
companies in the state. 325
(d) Any gas purchase agreement entered into pursuant to this section shall 326
be subject to review and approval by the Public Utilities Regulatory Authority, 327
which review shall be completed not later than one hundred twenty days after 328
the date on which such agreement is filed with the authority. The authority 329
shall review and approve such agreements if they meet the criteria in the 330
request for proposals issued pursuant to subsection (a) of this section and are 331
in the best interest of ratepayers. 332
(e) (1) The reasonable costs incurred by the gas companies in negotiating 333
and executing such gas purchase agreements and the net costs for the supply 334
of biogas under any such gas purchase agreement shall be recovered from all 335
customers of such company through the purchased gas adjustment clause in 336
section 16-19b of the general statutes. Any net revenues from the sale of 337
products purchased in accordance with any such agreements entered into 338
pursuant to this section shall be credited to customers through the same fully 339
reconciling rate component for all customers of the contracting gas company. 340
Any such net costs or net revenues, as applicable, of any such agreements shall 341
be apportioned in proportion to the revenues of each contracting gas company 342
as reported to the authority pursuant to section 16-49 of the general statutes 343 Raised Bill No. 5118
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for the most recent fiscal year. 344
(2) A gas company shall recover the costs incurred by such gas company 345
related to constructing, operating and maintaining infrastructure arising from 346
such gas purchase agreement from the biogas supplier through a contribution 347
in aid of construction or other provision of the gas purchase agreement. Any 348
incurred costs not to be recovered from the biogas supplier shall be identified 349
and approved by the authority at the time the authority approves any gas 350
purchase agreement. Such prudently incurred costs shall be recovered in any 351
existing rate tracking mechanism for the recovery of natural gas infrastructure 352
investments, or if no mechanism currently exists, a newly established rate 353
tracking mechanism established by the authority. 354
(f) A gas company can elect to either (1) use any renewable natural gas 355
procured pursuant to this section to meet the needs of its customers, or (2) sell 356
any such renewable natural gas into applicable markets or through bilateral 357
contracts with third parties with the net benefits or costs thereof reflected in 358
the purchased gas adjustment clause in section 16-19b of the general statutes. 359
(g) The commissioner may retain consultants to assist in implementing the 360
provisions of this section, including, but not limited to, the evaluation of 361
proposals submitted pursuant to this section. All reasonable costs associated 362
with the commissioner's solicitation and review of proposals pursuant to this 363
section shall be recoverable through the same fully reconciling rate component 364
for all customers of the gas companies. Such costs shall be recoverable even if 365
the commissioner does not select any proposals pursuant to any solicitation 366
issued pursuant to this section. 367
(h) (1) Any dispute arising from a contract that is approved by the authority 368
pursuant to this section shall be brought to the authority. A party may petition 369
the authority for a declaratory ruling or make an application for review 370
pursuant to this subsection. Notwithstanding subsection (a) of section 4-176 of 371
the general statutes, the authority may not on its own motion initiate a 372
proceeding to review a contract entered into pursuant to this subsection. 373
(2) The authority shall review such contract claims brought pursuant to 374
subdivision (1) of this subsection. The authority shall decide such contract 375
claims by issuing a declaratory ruling or a final decision in a contested case 376
proceeding, including ordering legal and equitable contract remedies. Any 377 Raised Bill No. 5118
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party to the contract shall have the right to appeal to the superior court from 378
any such declaratory ruling or final decision adjudicating such contract claims 379
pursuant to this subsection. 380
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2022 16-245a(a)
Sec. 2 October 1, 2022 16-244c(h)(1)
Sec. 3 October 1, 2022 16-245(k)
Sec. 4 October 1, 2022 16a-3i(a)
Sec. 5 October 1, 2022 New section
Sec. 6 October 1, 2022 New section
ET Joint Favorable