Connecticut 2022 Regular Session

Connecticut Senate Bill SB00090 Compare Versions

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7		-	General Assembly Substitute Bill No. 90
8		-	February Session, 2022
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14		-	AN ACT CONCERNING PROCUREMENT AUTHORITY FOR THE
15		-	DEPARTMENT OF ENERGY AND ENVIRONMENTAL PROTECTION.
	7	+	General Assembly Raised Bill No. 90
	8	+	February Session, 2022
	9	+	LCO No. 1114
	10	+
	11	+
	12	+	Referred to Committee on ENERGY AND TECHNOLOGY
	13	+
	14	+
	15	+	Introduced by:
	16	+	(ET)
	17	+
	18	+
	19	+
	20	+
	21	+	AN ACT CONCERNING CONSULTANT AND PROCUREMENT
	22	+	AUTHORITY FOR THE DEPARTMENT OF ENERGY AND
	23	+	ENVIRONMENTAL PROTECTION.
16	24		Be it enacted by the Senate and House of Representatives in General
17	25		Assembly convened:
18	26
19	27		Section 1. Section 16-243dd of the 2022 supplement to the general 1
20	28		statutes is repealed and the following is substituted in lieu thereof 2
21	29		(Effective July 1, 2022): 3
22	30		(a) The Commissioner of Energy and Environmental Protection, in 4
23	31		consultation with the procurement manager identified in subsection (l) 5
24	32		of section 16-2 and the Office of Consumer Counsel, may issue requests 6
25	33		for proposals for energy storage projects connected at the transmission 7
26	34		or distribution level, including stand-alone energy storage projects and 8
27	35		energy storage projects paired with Class I renewable energy sources or 9
28	36		hydropower facilities that have a nameplate capacity rating of not more 10
29	37		than one hundred megawatts, that would achieve the goals in section 11
30	38		16-243cc in combination with programs established by the Public 12
31	39		Utilities Regulatory Authority. If the Commissioner of Energy and 13
32		-	Environmental Protection determines that procuring energy storage is 14
	40	+	Environmental Protection determines that procuring energy storage is 14 Raised Bill No. 90
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33	46		cost effective, the commissioner shall proceed with the selection of 15
34	47		proposals. In making this determination, the commissioner shall 16
35	48		publish and make available for public comment a cost-effectiveness test 17
36		-	that considers each applicable benefit provided by energy storage. 18 Substitute Bill No. 90
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	49	+	that considers each applicable benefit provided by energy storage. 18
43	50		(b) In making any selection of such proposals, the commissioner shall 19
44	51		consider factors, including, but not limited to, (1) whether the proposal 20
45	52		is in the best interest of ratepayers, including, but not limited to, the 21
46	53		delivered price of such sources, (2) whether the proposal promotes 22
47	54		electric distribution system reliability, including during winter peak 23
48	55		demand, (3) any positive impacts on the state's economic development, 24
49	56		(4) whether the proposal is consistent with the requirements to reduce 25
50	57		greenhouse gas emissions in accordance with section 22a-200a, and (5) 26
51	58		whether the proposal is consistent with the policy goals outlined in the 27
52		-	Comprehensive Energy Strategy adopted pursuant to section 16a-3d 28
53		-	and the Integrated Resources Plan adopted ~~pursuant to section 16a-3a.~~ 29
54		-	In considering whether a proposal has any ~~positive impacts on the~~ 30
55		-	state's economic development, the ~~Commissioner of Energy and~~ 31
56		-	Environmental Protection shall consult ~~with the Commissioner of~~ 32
57		-	Economic and Community Development. 33
	59	+	Comprehensive Energy Strategy adopted pursuant to section 16a-3d, as 28
	60	+	amended by this act, and the Integrated Resources Plan adopted 29
	61	+	pursuant to section 16a-3a. In considering whether a proposal has any 30
	62	+	positive impacts on the state's economic development, the 31
	63	+	Commissioner of Energy and Environmental Protection shall consult 32
	64	+	with the Commissioner of Economic and Community Development. 33
58	65		(c) The commissioner may direct the electric distribution companies 34
59		-	to enter into agreements associated with proposals selected pursuant to 35
60		-	this section, for periods of not more than twenty years on behalf of all 36
61		-	customers of the state's electric distribution companies. 37
62		-	[(c)] (d) Any agreement entered into pursuant to this section shall be 38
63		-	subject to review and approval by the Public Utilities Regulatory 39
64		-	Authority, which review shall be completed not later than one hundred 40
65		-	twenty days after the date on which such agreement is filed with the 41
66		-	authority. The authority shall approve any such agreement if it is cost 42
67		-	effective and in the best interest of electric ratepayers. The net costs of 43
68		-	any such agreement, including costs incurred by the electric distribution 44
69		-	companies under the agreement and reasonable costs incurred by the 45
70		-	electric distribution companies in connection with the agreement, shall 46
71		-	be recovered through a fully reconciling component of electric rates for 47
72		-	all customers of electric distribution companies. Any net revenues from 48
73		-	the sale of products purchased in accordance with long-term contracts 49
74		-	entered into pursuant to this section shall be credited to customers 50
75		-	through the same fully reconciling rate component for all customers of 51 Substitute Bill No. 90
	66	+	to enter into power purchase agreements for energy, capacity, any 35
	67	+	transmission associated with such energy, or environmental attributes, 36
	68	+	or any combination thereof, associated with proposals selected pursuant 37
	69	+	to this section, for periods of not more than twenty years on behalf of all 38
	70	+	customers of the state's electric distribution companies. Certificates 39
	71	+	issued by the New England Power Pool Generation Information System 40
	72	+	for any Class I renewable energy procured by an electric distribution 41
	73	+	company pursuant to this section may be: (1) Sold into the New England 42
	74	+	Power Pool Generation Information System renewable energy credit 43
	75	+	market to be used by any electric supplier or electric distribution 44
	76	+	company to meet the requirements of section 16-245a, provided the 45
	77	+	revenues from such sale are credited to electric distribution company 46
	78	+	customers as described in this section; or (2) retained by the electric 47
	79	+	distribution company to meet the requirements of section 16-245a. In 48 Raised Bill No. 90
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82		-	the contracting electric distribution company. 52
83		-	Sec. 2. (Effective from passage) On or before January 15, 2023, the 53
84		-	Department of Energy and Environmental Protection shall submit a 54
85		-	report, in accordance with the provisions of section 11-4a of the general 55
86		-	statutes, to the joint standing committee of the General Assembly 56
87		-	having cognizance of matters relating to energy. Such report shall 57
88		-	include the impact on the environment due to the process of acquiring 58
89		-	the component materials of battery-storage technology and the disposal 59
90		-	of such technology after its useful life. 60
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	84	+
	85	+	considering whether to sell or retain such certificates, the company shall 49
	86	+	select the option that is in the best interest of such company's ratepayers. 50
	87	+	[(c)] (d) Any agreement entered into pursuant to this section shall be 51
	88	+	subject to review and approval by the Public Utilities Regulatory 52
	89	+	Authority, which review shall be completed not later than one hundred 53
	90	+	twenty days after the date on which such agreement is filed with the 54
	91	+	authority. The authority shall approve any such agreement if it is cost 55
	92	+	effective and in the best interest of electric ratepayers. The net costs of 56
	93	+	any such agreement, including costs incurred by the electric distribution 57
	94	+	companies under the agreement and reasonable costs incurred by the 58
	95	+	electric distribution companies in connection with the agreement, shall 59
	96	+	be recovered through a fully reconciling component of electric rates for 60
	97	+	all customers of electric distribution companies. Any net revenues from 61
	98	+	the sale of products purchased in accordance with long-term contracts 62
	99	+	entered into pursuant to this section shall be credited to customers 63
	100	+	through the same fully reconciling rate component for all customers of 64
	101	+	the contracting electric distribution company. 65
	102	+	(e) The commissioner may hire consultants with expertise in 66
	103	+	quantitative modeling of electric and gas markets to assist in 67
	104	+	implementing this section, including, but not limited to, the evaluation 68
	105	+	of proposals submitted pursuant to this section. All reasonable costs 69
	106	+	associated with the commissioner's solicitation and review of proposals 70
	107	+	pursuant to this section shall be recoverable through the same fully 71
	108	+	reconciling rate component for all customers of the electric distribution 72
	109	+	companies. 73
	110	+	Sec. 2. Section 16a-3d of the 2022 supplement to the general statutes 74
	111	+	is repealed and the following is substituted in lieu thereof (Effective July 75
	112	+	1, 2022): 76
	113	+	(a) On or before October 1, 2020, and every four years thereafter, the 77
	114	+	Commissioner of Energy and Environmental Protection shall prepare a 78
	115	+	Comprehensive Energy Strategy. Said strategy shall reflect the 79
	116	+	legislative findings and policy stated in section 16a-35k, provide any 80 Raised Bill No. 90
	117	+
	118	+
	119	+
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	122	+	analysis and recommendations necessary to guide the state's energy 81
	123	+	policy to meet greenhouse gas emission reduction requirements, as 82
	124	+	established in section 22a-200a, in the most cost-effective manner and 83
	125	+	incorporate (1) an assessment and plan for all energy needs in the state, 84
	126	+	including, but not limited to, electricity, heating, cooling, and 85
	127	+	transportation, (2) the findings of the Integrated Resources Plan, (3) the 86
	128	+	findings of the plan for energy efficiency adopted pursuant to section 87
	129	+	16-245m, (4) the findings of the plan for renewable energy adopted 88
	130	+	pursuant to section 16-245n, and (5) the Energy Assurance Plan 89
	131	+	developed for the state of Connecticut pursuant to the American 90
	132	+	Recovery and Reinvestment Act of 2009, P.L. 111-5, or any successor 91
	133	+	Energy Assurance Plan developed within a reasonable time prior to the 92
	134	+	preparation of any Comprehensive Energy Strategy. Said strategy shall 93
	135	+	further include, but not be limited to, (A) an assessment of current 94
	136	+	energy supplies, demand and costs, (B) identification and evaluation of 95
	137	+	the factors likely to affect future energy supplies, demand and costs, (C) 96
	138	+	a statement of progress made toward achieving the goals and milestones 97
	139	+	set in the preceding Comprehensive Energy Strategy, (D) a statement of 98
	140	+	energy policies and long-range energy planning objectives and 99
	141	+	strategies appropriate to achieve, the state's greenhouse gas reduction 100
	142	+	goals established in section 22a-200a, a sound economy, the least-cost 101
	143	+	mix of energy supply sources to meet said goals and measures that 102
	144	+	reduce demand for energy, giving due regard to such factors as 103
	145	+	consumer price impacts, security and diversity of fuel supplies and 104
	146	+	energy generating methods, protection of public health and safety, 105
	147	+	environmental goals and standards, conservation of energy and energy 106
	148	+	resources and the ability of the state to compete economically, (E) 107
	149	+	recommendations for administrative and legislative actions to 108
	150	+	implement such policies, objectives and strategies, (F) an assessment of 109
	151	+	the potential costs savings and benefits to ratepayers, including, but not 110
	152	+	limited to, carbon dioxide emissions reductions or voluntary joint 111
	153	+	ventures to repower some or all of the state's coal-fired and oil-fired 112
	154	+	generation facilities built before 1990, (G) the benefits, costs, obstacles 113
	155	+	and solutions related to the expansion and use and availability of 114
	156	+	natural gas in Connecticut, and (H) a strategy for ensuring the state's 115 Raised Bill No. 90
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	162	+	energy efficiency goals are met. 116
	163	+	(b) In adopting the Comprehensive Energy Strategy, the 117
	164	+	Commissioner of Energy and Environmental Protection shall conduct a 118
	165	+	proceeding that shall not be considered a contested case under chapter 119
	166	+	54, but shall include not less than one public meeting and one technical 120
	167	+	meeting at which technical personnel shall be available to answer 121
	168	+	questions. Such meetings shall be transcribed and posted on the 122
	169	+	department's Internet web site. Said commissioner shall give not less 123
	170	+	than fifteen days' notice of such proceeding by electronic publication on 124
	171	+	the department's Internet web site. Not later than fifteen days prior to 125
	172	+	any such public meeting and not less than thirty days prior to any such 126
	173	+	technical meeting, the commissioner shall publish notice of either such 127
	174	+	meeting and post the text of the proposed Comprehensive Energy 128
	175	+	Strategy on the department's Internet web site. Notice of such public 129
	176	+	meeting or technical meeting may also be published in one or more 130
	177	+	newspapers having state-wide circulation if deemed necessary by the 131
	178	+	commissioner. Such notice shall state the date, time, and place of the 132
	179	+	meeting, the subject matter of the meeting, the manner and time period 133
	180	+	during which comments may be submitted to said commissioner, the 134
	181	+	statutory authority for the proposed strategy and the location where a 135
	182	+	copy of the proposed strategy may be obtained or examined in addition 136
	183	+	to posting the proposed strategy on the department's Internet web site. 137
	184	+	Said commissioner shall provide a time period of not less than sixty days 138
	185	+	from the date the notice is published on the department's Internet web 139
	186	+	site for public review and comment. During such time period, any 140
	187	+	person may provide comments concerning the proposed strategy to said 141
	188	+	commissioner. Said commissioner shall consider fully all written and 142
	189	+	oral comments concerning the proposed strategy after all public 143
	190	+	meetings and technical meetings and before approving the final 144
	191	+	strategy. Said commissioner shall (1) notify by electronic mail each 145
	192	+	person who requests such notice, and (2) post on the department's 146
	193	+	Internet web site the electronic text of the final strategy and a report 147
	194	+	summarizing all public comments and the changes made to the final 148
	195	+	strategy in response to such comments and the reasons therefor. The 149 Raised Bill No. 90
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	201	+	Public Utilities Regulatory Authority shall comment on the strategy's 150
	202	+	impact on natural gas and electric rates. 151
	203	+	(c) The Commissioner of Energy and Environmental Protection shall 152
	204	+	submit the final Comprehensive Energy Strategy electronically to the 153
	205	+	joint standing committees of the General Assembly having cognizance 154
	206	+	of matters relating to energy and the environment. 155
	207	+	(d) The Commissioner of Energy and Environmental Protection may 156
	208	+	modify the Comprehensive Energy Strategy in accordance with the 157
	209	+	procedures outlined in subsections (b) and (c) of this section. 158
	210	+	(e) For the Comprehensive Energy Strategy next approved after 159
	211	+	October 1, 2021, and every Comprehensive Energy Strategy prepared 160
	212	+	thereafter, the Commissioner of Energy and Environmental Protection 161
	213	+	shall consider (1) the reductions in greenhouse gas emissions resulting 162
	214	+	from low-carbon fuel blends used in home heating oil on a life-cycle 163
	215	+	basis, (2) possible contributions to the state's greenhouse gas emissions 164
	216	+	mandated levels, pursuant to section 22a-200a, in connection with the 165
	217	+	reduction of greenhouse gas emissions on a life-cycle basis, (3) the 166
	218	+	ability of a thermal portfolio standard to further reductions in 167
	219	+	greenhouse gas emissions on a life-cycle basis, and (4) the relative value 168
	220	+	of the reductions in greenhouse gas emissions on a life-cycle basis 169
	221	+	achieved by biodiesel and other low-carbon fuel blends used currently 170
	222	+	in the state compared with the value of future projected greenhouse gas 171
	223	+	emissions reductions achieved by the retail heating oil industry on a life-172
	224	+	cycle basis five, ten, and twenty years into the future using the 173
	225	+	Department of Energy and Environmental Protections' 174
	226	+	contemporaneous projection of renewable energy utilized. 175
	227	+	(f) In the performance of its duties pursuant to this section, the 176
	228	+	Department of Energy and Environmental Protection may retain 177
	229	+	consultants to assist its staff by providing expertise in areas in which 178
	230	+	staff expertise does not currently exist or when necessary to supplement 179
	231	+	existing staff expertise. All reasonable costs associated with said 180
	232	+	consultants and the department's development of the Comprehensive 181 Raised Bill No. 90
	233	+
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	238	+	Energy Strategy shall be recoverable through the assessment authorized 182
	239	+	pursuant to section 16-49. 183
91	240		This act shall take effect as follows and shall amend the following
92	241		sections:
93	242
94	243		Section 1 July 1, 2022 16-243dd
95		-	Sec. 2 ~~from passage New section~~
	244	+	Sec. 2 July 1, 2022 16a-3d
96	245
97		-	ET Joint Favorable Subst.
	246	+	Statement of Purpose:
	247	+	To give the Department of Energy and Environmental Protection the
	248	+	authority to utilize the services of consultants and to direct the electric
	249	+	distribution companies to enter into certain power purchase
	250	+	agreements.
	251	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	252	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	253	+	underlined.]
98	254