Connecticut 2022 2022 Regular Session

Connecticut Senate Bill SB00176 Introduced / Bill

Filed 02/22/2022

                        
 
 
 
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General Assembly  Raised Bill No. 176  
February Session, 2022 
LCO No. 1714 
 
 
Referred to Committee on ENERGY AND TECHNOLOGY  
 
 
Introduced by:  
(ET)  
 
 
 
 
AN ACT CONCERNING SHARED CLEAN ENERGY FACILITIES. 
Be it enacted by the Senate and House of Representatives in General 
Assembly convened: 
 
Section 1. Subdivision (2) of subsection (a) of section 16-244z of the 1 
2022 supplement to the general statutes is repealed and the following is 2 
substituted in lieu thereof (Effective October 1, 2022): 3 
(2) Not later than July 1, 2022, and annually thereafter, each electric 4 
distribution company shall solicit and file with the Public Utilities 5 
Regulatory Authority for its approval one or more projects selected 6 
resulting from any procurement issued pursuant to subdivision (1) of 7 
this subsection that are consistent with the tariffs approved by the 8 
authority pursuant to subparagraphs (B) and (C) of subdivision (1) of 9 
this subsection and that are applicable to (A) customers that own or 10 
develop new generation projects on a customer's own premises that are 11 
less than [two] five megawatts in size, serve the distribution system of 12 
the electric distribution company, are constructed after the solicitation 13 
conducted pursuant to subdivision (4) of this subsection to which the 14 
customer is responding, and use a Class I renewable energy source that 15 
either (i) uses anaerobic digestion, or (ii) has emissions of no more than 16  Raised Bill No.  176 
 
 
 
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0.07 pounds per megawatt-hour of nitrogen oxides, 0.10 pounds per 17 
megawatt-hour of carbon monoxide, 0.02 pounds per megawatt-hour of 18 
volatile organic compounds and one grain per one hundred standard 19 
cubic feet, (B) customers that own or develop new generation projects 20 
on a customer's own premises that are less than [two] five megawatts in 21 
size, serve the distribution system of the electric distribution company, 22 
are constructed after the solicitation conducted pursuant to subdivision 23 
(4) of this subsection to which the customer is responding, and use a 24 
Class I renewable energy source that emits no pollutants, and (C) 25 
customers that own or develop new generation projects that are a shared 26 
clean energy facility, as defined in section 16-244x, and subscriptions, as 27 
defined in such section, associated with such facility, consistent with the 28 
program requirements developed pursuant to subparagraph (C) of 29 
subdivision (1) of this subsection. Any project that is eligible pursuant 30 
to subparagraph (C) of this subdivision shall not be eligible pursuant to 31 
subparagraph (A) or (B) of this subdivision. 32 
Sec. 2. Subdivision (6) of subsection (a) of section 16-244z of the 2022 33 
supplement to the general statutes is repealed and the following is 34 
substituted in lieu thereof (Effective October 1, 2022): 35 
(6) The program requirements for shared clean energy facilities 36 
developed pursuant to subparagraph (C) of subdivision (1) of this 37 
subsection shall include, but not be limited to, the following: 38 
(A) The department shall allow cost-effective projects of various 39 
nameplate capacities that may allow for the construction of multiple 40 
projects in the service area of each electric distribution company that 41 
operates within the state. 42 
(B) The department shall determine the billing credit for any 43 
subscriber of a shared clean energy facility that may be issued through 44 
the electric distribution companies' monthly billing systems, and 45 
establish consumer protections for subscribers and potential subscribers 46 
of such a facility, including, but not limited to, disclosures to be made 47 
when selling or reselling a subscription. 48  Raised Bill No.  176 
 
 
 
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(C) Such program shall utilize one or more tariff mechanisms with 49 
the electric distribution companies for a term not to exceed twenty years, 50 
subject to approval by the Public Utilities Regulatory Authority, to pay 51 
for the purchase of any energy products and renewable energy 52 
certificates produced by any eligible shared clean energy facility, or to 53 
deliver any billing credit of any such facility. 54 
(D) The department shall limit subscribers to (i) low-income 55 
customers, (ii) moderate-income customers, (iii) small business 56 
customers, (iv) state or municipal customers, (v) commercial customers, 57 
and (vi) residential customers who can demonstrate, pursuant to criteria 58 
determined by the department in the program requirements 59 
recommended by the department and approved by the authority, that 60 
they are unable to utilize the tariffs offered pursuant to subsection (b) of 61 
this section. 62 
(E) The department shall require that (i) not less than [ten] twenty per 63 
cent of the total capacity of each shared clean energy facility is sold, 64 
given or provided to low-income customers, and (ii) in addition to the 65 
requirement of clause (i) of this subparagraph, not less than [ten] sixty 66 
per cent of the total capacity of each shared clean energy facility is sold, 67 
given or provided to low-income customers, moderate-income 68 
customers or low-income service organizations. 69 
(F) The department may allow preferences to projects that serve low-70 
income customers and shared clean energy facilities that benefit 71 
customers who reside in environmental justice communities. 72 
(G) The department shall require not less than forty per cent of the 73 
shared clean energy facilities developed pursuant to subparagraph (C) 74 
of subdivision (1) of this subsection to be located in environmental 75 
justice communities. 76 
[(G)] (H) The department may create incentives or other financing 77 
mechanisms to encourage participation by low-income customers. 78 
[(H)] (I) The department may require that not more than fifty per cent 79  Raised Bill No.  176 
 
 
 
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of the total capacity of each shared clean energy facility is sold to 80 
commercial customers. 81 
Sec. 3. Subparagraph (A) of subdivision (1) of subsection (c) of section 82 
16-244z of the 2022 supplement to the general statutes is repealed and 83 
the following is substituted in lieu thereof (Effective October 1, 2022): 84 
(c) (1) (A) The aggregate total megawatts available to all customers 85 
utilizing a procurement and tariff offered by electric distribution 86 
companies pursuant to subsection (a) of this section shall be up to 87 
eighty-five megawatts in year one and increase by up to an additional 88 
eighty-five megawatts per year in each of the years two through six of 89 
such a tariff, provided the total megawatts available to customers 90 
eligible under subparagraph (A) of subdivision (2) of subsection (a) of 91 
this section shall not exceed ten megawatts per year, the total megawatts 92 
available to customers eligible under subparagraph (B) of subdivision 93 
(2) of subsection (a) of this section shall not exceed fifty megawatts per 94 
year and the total megawatts available to customers eligible under 95 
subparagraph (C) of subdivision (2) of subsection (a) of this section shall 96 
not exceed [twenty-five] thirty-five megawatts per year. The authority 97 
shall monitor the competitiveness of any procurements authorized 98 
pursuant to subsection (a) of this section and may adjust the annual 99 
purchase amount established in this subsection or other procurement 100 
parameters to maintain competitiveness. Any megawatts not allocated 101 
in any given year shall [not] roll into the next year's available 102 
megawatts. The obligation to purchase energy and renewable energy 103 
certificates shall be apportioned to electric distribution companies based 104 
on their respective distribution system loads, as determined by the 105 
authority. 106 
Sec. 4. Section 16-244z of the 2022 supplement to the general statutes 107 
is amended by adding subsections (f) and (g) as follows (Effective October 108 
1, 2022): 109 
(NEW) (f) An electric distribution company may submit a proposal 110 
to the Department of Energy and Environmental Protection to own one 111  Raised Bill No.  176 
 
 
 
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or more solar power electrical generation facilities developed pursuant 112 
to subparagraph (C) of subdivision (1) of subsection (a) of this section. 113 
(NEW) (g) Notwithstanding the size-to-load provisions of 114 
subdivision (4) of subsection (a) of this section, the entire rooftop space 115 
of a customer's own premises developed pursuant to subparagraph (B) 116 
of subdivision (1) of subsection (a) of this section and owned by a 117 
commercial or industrial customer may be used for purposes of 118 
electricity generation. 119 
This act shall take effect as follows and shall amend the following 
sections: 
 
Section 1 October 1, 2022 16-244z(a)(2) 
Sec. 2 October 1, 2022 16-244z(a)(6) 
Sec. 3 October 1, 2022 16-244z(c)(1)(A) 
Sec. 4 October 1, 2022 16-244z 
 
Statement of Purpose:   
To: (1) Modify existing energy caps involving shared clean energy 
facilities, (2) permit electric distribution companies to own solar power 
generation facilities within the Shared Clean Energy Facility program, 
and (3) to allow commercial and industrial customers in the non-
residential renewable energy tariff program to use their entire roof 
space for generation. 
[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.]