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General Assembly Substitute Bill No. 176
February Session, 2022
AN ACT CONCERNING CLEAN ENERGY TARIFF PROGRAMS.
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2022 supplement to the general statutes is repealed and the following is 2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
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 Substitute Bill No. 176
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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, 27
as defined in such section, associated with such facility,] consistent with 28
the program requirements developed pursuant to subparagraph (C) of 29
subdivision (1) of this subsection. For purposes of this section, "shared 30
clean energy facility" means a Class I renewable energy source, as 31
defined in section 16-1, that (i) is served by an electric distribution 32
company, as defined in section 16-1, (ii) is within the same electric 33
distribution company service territory as the individual billing meters 34
for subscriptions, (iii) has a nameplate capacity rating of five megawatts 35
or less, and (iv) has at least two subscribers. Any project that is eligible 36
pursuant to subparagraph (C) of this subdivision shall not be eligible 37
pursuant to subparagraph (A) or (B) of this subdivision. 38
Sec. 2. Subdivisions (6) and (7) of subsection (a) of section 16-244z of 39
the 2022 supplement to the general statutes are repealed and the 40
following is substituted in lieu thereof (Effective October 1, 2022): 41
(6) The program requirements for shared clean energy facilities 42
developed pursuant to subparagraph (C) of subdivision (1) of this 43
subsection shall include, but not be limited to, the following: 44
(A) The department shall allow cost-effective projects of various 45
nameplate capacities that may allow for the construction of multiple 46
projects in the service area of each electric distribution company that 47
operates within the state. 48
(B) The department shall determine the billing credit for any 49
subscriber of a shared clean energy facility that may be issued through 50
the electric distribution companies' monthly billing systems, and 51 Substitute Bill No. 176
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establish consumer protections for subscribers and potential subscribers 52
of such a facility, including, but not limited to, disclosures to be made 53
when selling or reselling a subscription. 54
(C) Such program shall utilize one or more tariff mechanisms with 55
the electric distribution companies for a term not to exceed twenty years, 56
subject to approval by the Public Utilities Regulatory Authority, to pay 57
for the purchase of any energy products and renewable energy 58
certificates produced by any eligible shared clean energy facility, or to 59
deliver any billing credit of any such facility. 60
(D) The department shall limit subscribers to (i) low-income 61
customers, (ii) moderate-income customers, (iii) small business 62
customers, (iv) state or municipal customers, (v) commercial customers, 63
and (vi) residential customers who can demonstrate, pursuant to criteria 64
determined by the department in the program requirements 65
recommended by the department and approved by the authority, that 66
they are unable to utilize the tariffs offered pursuant to subsection (b) of 67
this section. 68
(E) The department shall require that (i) not less than [ten] twenty per 69
cent of the total capacity of each shared clean energy facility is sold, 70
given or provided to low-income customers, and (ii) [in addition to the 71
requirement of clause (i) of this subparagraph,] not less than [ten] sixty 72
per cent of the total capacity of each shared clean energy facility is sold, 73
given or provided to low-income customers, moderate-income 74
customers or low-income service organizations. 75
(F) The department may allow preferences to projects that serve low-76
income customers and shared clean energy facilities that benefit 77
customers who reside in environmental justice communities. 78
(G) The department may create incentives or other financing 79
mechanisms to encourage participation by low-income customers. 80
(H) The department may require that not more than fifty per cent of 81
the total capacity of each shared clean energy facility is sold to 82 Substitute Bill No. 176
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commercial customers. 83
(7) For purposes of this subsection: 84
(A) "Environmental justice community" has the same meaning as 85
provided in subsection (a) of section 22a-20a; 86
(B) "Low-income customer" means an in-state retail end user of an 87
electric distribution company (i) whose income does not exceed [eighty] 88
sixty per cent of the [area] state median income, [as defined by the 89
United States Department of Housing and Urban Development, ] 90
adjusted for family size, or (ii) that is an affordable housing facility; [as 91
defined in section 8-39a;] 92
(C) "Low-income service organization" means a for-profit or 93
nonprofit organization that provides service or assistance to low-income 94
individuals; 95
(D) "Moderate-income customer" means an in-state retail end user of 96
an electric distribution company whose income is between eighty per 97
cent and one hundred per cent of the area median income as defined by 98
the United States Department of Housing and Urban Development, 99
adjusted for family size. 100
Sec. 3. Subparagraph (A) of subdivision (1) of subsection (c) of section 101
16-244z of the 2022 supplement to the general statutes is repealed and 102
the following is substituted in lieu thereof (Effective October 1, 2022): 103
(c) (1) (A) The aggregate total megawatts available to all customers 104
utilizing a procurement and tariff offered by electric distribution 105
companies pursuant to subsection (a) of this section shall be up to 106
eighty-five megawatts in year one and increase by up to an additional 107
[eighty-five] one hundred sixty megawatts per year in each of the years 108
two through six of such a tariff, provided the total megawatts available 109
to customers eligible under subparagraph (A) of subdivision (2) of 110
subsection (a) of this section shall not exceed ten megawatts per year, 111
the total megawatts available to customers eligible under subparagraph 112 Substitute Bill No. 176
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(B) of subdivision (2) of subsection (a) of this section shall not exceed 113
[fifty] one hundred megawatts per year and the total megawatts 114
available to customers eligible under subparagraph (C) of subdivision 115
(2) of subsection (a) of this section shall not exceed [twenty-five] fifty 116
megawatts per year. The authority shall monitor the competitiveness of 117
any procurements authorized pursuant to subsection (a) of this section 118
and may adjust the annual purchase amount established in this 119
subsection or other procurement parameters to maint ain 120
competitiveness. Any megawatts not allocated in any given year shall 121
[not] roll into the next year's available megawatts. The obligation to 122
purchase energy and renewable energy certificates shall be apportioned 123
to electric distribution companies based on their respective distribution 124
system loads, as determined by the authority. 125
Sec. 4. Section 16-244z of the 2022 supplement to the general statutes 126
is amended by adding subsection (f) as follows (Effective October 1, 2022): 127
(NEW) (f) Notwithstanding the size-to-load provisions of 128
subdivision (4) of subsection (a) of this section, the entire rooftop space 129
of a customer's own premises developed pursuant to subparagraph (B) 130
of subdivision (1) of subsection (a) of this section and owned by a 131
commercial or industrial customer may be used for purposes of 132
electricity generation and participation in the solicitation conducted by 133
each electric distribution company pursuant to subdivision (4) of 134
subsection (a) of this section. 135
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) and (7)
Sec. 3 October 1, 2022 16-244z(c)(1)(A)
Sec. 4 October 1, 2022 16-244z
ET Joint Favorable Subst.