LCO No. 1714 1 of 5 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 Subdivision (2) of subsection (a) of section 16-244z of the 1 2022 supplement to the general statutes is repealed and the following is 2 substituted in lieu thereof (Effective October 1, 2022): 3 (2) Not later than July 1, 2022, and annually thereafter, each electric 4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 LCO No. 1714 2 of 5 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 LCO No. 1714 3 of 5 (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 LCO No. 1714 4 of 5 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 LCO No. 1714 5 of 5 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.]