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OLR Bill Analysis
sSB 176
AN ACT CONCERNING CLEAN ENERGY TARIFF PROGRAMS.
SUMMARY
This bill expands the Non-Residential Energy Solutions (NRES) and
the Shared Cleaner Energy Facilities (SCEF) programs (see
BACKGROUND).
The bill increases the yearly amount of capacity in megawatts (MW)
available for (1) zero-emissions NRES projects (e.g., solar facilities) from
50 to 100 MW and (2) SCEF projects from 25 to 50 MW (§ 3). Existing law
establishes a six-year schedule for these programs and current law caps
the aggregate capacity of both programs at 85 MW each year. The bill
correspondingly raises the aggregate cap for NRES and SCEF projects
from 85 to 160 MW in years two through six. Under current law,
megawatts available under the programs for each year expire annually.
The bill instead requires the available megawatts to roll over to the next
program year.
The bill increases the eligible project size for these programs, from
two to five MW for NRES and from four to five MW for SCEF (§ 1). It
also increases the potential size of NRES projects by allowing
commercial and industrial customers to participate in the program
using their entire rooftop space, exempting them from a provision that
generally limits project size based on the customer’s load (i.e., amount
of the energy the customer uses) (§ 4).
For SCEF, the bill increases the proportion of the program that must
benefit low-income customers (§ 2). It increases the amount of each
SCEF facility’s total capacity that must be sold, given, or provided to
low-income customers from 10% to 20%. It also increases the amount
that must go to low- or moderate-income customers or low-income
service organizations (i.e., organizations assisting low-income people) 2022SB-00176-R000348-BA.DOCX
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from 10% to 60%. Currently, these requirements are separate, but under
the bill, the low-income requirement may be used to meet the larger
low-income, moderate-income, and service organization requirement.
The bill also defines “low-income” based on state median income, rather
than area median income.
EFFECTIVE DATE: October 1, 2022
LOW-INCOME CUSTOMERS FOR SCEF REQUIREMENTS
Under current law, “low-income” customers have incomes up to 80%
of the area median income as defined by the U.S. Department of
Housing and Urban Development. The bill instead defines “low-
income” as up to 60% of the state median income. By law, affordable
housing facilities are also low-income customers. The bill
correspondingly removes reference to an existing statutory definition
that is based on area median income.
BACKGROUND
NRES Program
The NRES program allows non-residential customers (e.g.,
commercial and industrial customers) to participate in an annual
solicitation conducted by Eversource and United Illuminating in which
selected projects enter into a 20-year contract with the companies for
energy and related products (e.g., renewable energy credits (RECs)). To
be eligible, a project must be a Class I renewable energy source that (1)
uses anaerobic digestion or has low emissions (e.g., fuel cells) or (2) has
zero emissions (e.g., solar facilities) (CGS § 16-244z(a)(2)(A) & (B)). The
law has a six-year schedule for the program, which is currently in its
first year (i.e., 2022 is Year 1).
SCEF Program
Generally, a shared clean energy facility allows customers to
subscribe for energy or RECs from a facility that is not on the customer’s
premises. Under the SCEF program, eligible facilities are Class I
renewable energy sources (e.g., wind or solar) served by Eversource or
United Illuminating with at least two subscribers in the same utility
service territory as the facility (CGS § 16-244z(a)(2)(C)). Eversource and 2022SB-00176-R000348-BA.DOCX
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United Illuminating conduct an annual solicitation using a competitive
bidding procurement process and enter into 20-year contracts with
selected projects. The law establishes a six-year schedule for the
program, which is currently in its third year (i.e., 2020 was Year 1).
COMMITTEE ACTION
Energy and Technology Committee
Joint Favorable Substitute
Yea 26 Nay 0 (03/22/2022)