Connecticut 2022 Regular Session

Connecticut Senate Bill SB00176 Compare Versions

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	7	+	General Assembly Substitute Bill No. 176
	8	+	February Session, 2022
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4		-	Substitute Senate Bill No. 176
5		-
6		-	Public Act No. 22-14
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9	14		AN ACT CONCERNING CLEAN ENERGY TARIFF PROGRAMS.
10	15		Be it enacted by the Senate and House of Representatives in General
11	16		Assembly convened:
12	17
13		-	Section 1. Subdivision (2) of subsection (a) of section 16-244z of the
14		-	2022 supplement to the general statutes is repealed and the following is
15		-	substituted in lieu thereof (Effective October 1, 2022):
16		-	(2) Not later than July 1, 2022, and annually thereafter, each electric
17		-	distribution company shall solicit and file with the Public Utilities
18		-	Regulatory Authority for its approval one or more projects selected
19		-	resulting from any procurement issued pursuant to subdivision (1) of
20		-	this subsection that are consistent with the tariffs approved by the
21		-	authority pursuant to subparagraphs (B) and (C) of subdivision (1) of
22		-	this subsection and that are applicable to (A) customers that own or
23		-	develop new generation projects on a customer's own premises that are
24		-	less than [two] five megawatts in size, serve the distribution system of
25		-	the electric distribution company, are constructed after the solicitation
26		-	conducted pursuant to subdivision (4) of this subsection to which the
27		-	customer is responding, and use a Class I renewable energy source that
28		-	either (i) uses anaerobic digestion, or (ii) has emissions of no more than
29		-	0.07 pounds per megawatt-hour of nitrogen oxides, 0.10 pounds per
30		-	megawatt-hour of carbon monoxide, 0.02 pounds per megawatt-hour of
31		-	volatile organic compounds and one grain per one hundred standard Substitute ~~Senate~~ Bill No. 176
	18	+	Section 1. Subdivision (2) of subsection (a) of section 16-244z of the 1
	19	+	2022 supplement to the general statutes is repealed and the following is 2
	20	+	substituted in lieu thereof (Effective October 1, 2022): 3
	21	+	(2) Not later than July 1, 2022, and annually thereafter, each electric 4
	22	+	distribution company shall solicit and file with the Public Utilities 5
	23	+	Regulatory Authority for its approval one or more projects selected 6
	24	+	resulting from any procurement issued pursuant to subdivision (1) of 7
	25	+	this subsection that are consistent with the tariffs approved by the 8
	26	+	authority pursuant to subparagraphs (B) and (C) of subdivision (1) of 9
	27	+	this subsection and that are applicable to (A) customers that own or 10
	28	+	develop new generation projects on a customer's own premises that are 11
	29	+	less than [two] five megawatts in size, serve the distribution system of 12
	30	+	the electric distribution company, are constructed after the solicitation 13
	31	+	conducted pursuant to subdivision (4) of this subsection to which the 14
	32	+	customer is responding, and use a Class I renewable energy source that 15
	33	+	either (i) uses anaerobic digestion, or (ii) has emissions of no more than 16
	34	+	0.07 pounds per megawatt-hour of nitrogen oxides, 0.10 pounds per 17
	35	+	megawatt-hour of carbon monoxide, 0.02 pounds per megawatt-hour of 18
	36	+	volatile organic compounds and one grain per one hundred standard 19 Substitute Bill No. 176
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33		-	Public Act No. 22-14 2 of 6
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35		-	cubic feet, (B) customers that own or develop new generation projects
36		-	on a customer's own premises that are less than [two] five megawatts in
37		-	size, serve the distribution system of the electric distribution company,
38		-	are constructed after the solicitation conducted pursuant to subdivision
39		-	(4) of this subsection to which the customer is responding, and use a
40		-	Class I renewable energy source that emits no pollutants, and (C)
41		-	customers that own or develop new generation projects that are a shared
42		-	clean energy facility, [as defined in section 16-244x, and subscriptions,
43		-	as defined in such section, associated with such facility,] consistent with
44		-	the program requirements developed pursuant to subparagraph (C) of
45		-	subdivision (1) of this subsection. For purposes of this section, "shared
46		-	clean energy facility" means a Class I renewable energy source, as
47		-	defined in section 16-1, that (i) is served by an electric distribution
48		-	company, as defined in section 16-1, (ii) is within the same electric
49		-	distribution company service territory as the individual billing meters
50		-	for subscriptions, (iii) has a nameplate capacity rating of five megawatts
51		-	or less, and (iv) has at least two subscribers. Any project that is eligible
52		-	pursuant to subparagraph (C) of this subdivision shall not be eligible
53		-	pursuant to subparagraph (A) or (B) of this subdivision.
54		-	Sec. 2. Subdivisions (6) and (7) of subsection (a) of section 16-244z of
55		-	the 2022 supplement to the general statutes are repealed and the
56		-	following is substituted in lieu thereof (Effective October 1, 2022):
57		-	(6) The program requirements for shared clean energy facilities
58		-	developed pursuant to subparagraph (C) of subdivision (1) of this
59		-	subsection shall include, but not be limited to, the following:
60		-	(A) The department shall allow cost-effective projects of various
61		-	nameplate capacities that may allow for the construction of multiple
62		-	projects in the service area of each electric distribution company that
63		-	operates within the state.
64		-	(B) The department shall determine the billing credit for any Substitute Senate Bill No. 176
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	43	+	cubic feet, (B) customers that own or develop new generation projects 20
	44	+	on a customer's own premises that are less than [two] five megawatts in 21
	45	+	size, serve the distribution system of the electric distribution company, 22
	46	+	are constructed after the solicitation conducted pursuant to subdivision 23
	47	+	(4) of this subsection to which the customer is responding, and use a 24
	48	+	Class I renewable energy source that emits no pollutants, and (C) 25
	49	+	customers that own or develop new generation projects that are a shared 26
	50	+	clean energy facility, [as defined in section 16-244x, and subscriptions, 27
	51	+	as defined in such section, associated with such facility,] consistent with 28
	52	+	the program requirements developed pursuant to subparagraph (C) of 29
	53	+	subdivision (1) of this subsection. For purposes of this section, "shared 30
	54	+	clean energy facility" means a Class I renewable energy source, as 31
	55	+	defined in section 16-1, that (i) is served by an electric distribution 32
	56	+	company, as defined in section 16-1, (ii) is within the same electric 33
	57	+	distribution company service territory as the individual billing meters 34
	58	+	for subscriptions, (iii) has a nameplate capacity rating of five megawatts 35
	59	+	or less, and (iv) has at least two subscribers. Any project that is eligible 36
	60	+	pursuant to subparagraph (C) of this subdivision shall not be eligible 37
	61	+	pursuant to subparagraph (A) or (B) of this subdivision. 38
	62	+	Sec. 2. Subdivisions (6) and (7) of subsection (a) of section 16-244z of 39
	63	+	the 2022 supplement to the general statutes are repealed and the 40
	64	+	following is substituted in lieu thereof (Effective October 1, 2022): 41
	65	+	(6) The program requirements for shared clean energy facilities 42
	66	+	developed pursuant to subparagraph (C) of subdivision (1) of this 43
	67	+	subsection shall include, but not be limited to, the following: 44
	68	+	(A) The department shall allow cost-effective projects of various 45
	69	+	nameplate capacities that may allow for the construction of multiple 46
	70	+	projects in the service area of each electric distribution company that 47
	71	+	operates within the state. 48
	72	+	(B) The department shall determine the billing credit for any 49
	73	+	subscriber of a shared clean energy facility that may be issued through 50
	74	+	the electric distribution companies' monthly billing systems, and 51 Substitute Bill No. 176
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68		-	subscriber of a shared clean energy facility that may be issued through
69		-	the electric distribution companies' monthly billing systems, and
70		-	establish consumer protections for subscribers and potential subscribers
71		-	of such a facility, including, but not limited to, disclosures to be made
72		-	when selling or reselling a subscription.
73		-	(C) Such program shall utilize one or more tariff mechanisms with
74		-	the electric distribution companies for a term not to exceed twenty years,
75		-	subject to approval by the Public Utilities Regulatory Authority, to pay
76		-	for the purchase of any energy products and renewable energy
77		-	certificates produced by any eligible shared clean energy facility, or to
78		-	deliver any billing credit of any such facility.
79		-	(D) The department shall limit subscribers to (i) low-income
80		-	customers, (ii) moderate-income customers, (iii) small business
81		-	customers, (iv) state or municipal customers, (v) commercial customers,
82		-	and (vi) residential customers who can demonstrate, pursuant to criteria
83		-	determined by the department in the program requirements
84		-	recommended by the department and approved by the authority, that
85		-	they are unable to utilize the tariffs offered pursuant to subsection (b) of
86		-	this section.
87		-	(E) The department shall require that (i) not less than [ten] twenty per
88		-	cent of the total capacity of each shared clean energy facility is sold,
89		-	given or provided to low-income customers, and (ii) [in addition to the
90		-	requirement of clause (i) of this subparagraph,] not less than [ten] sixty
91		-	per cent of the total capacity of each shared clean energy facility is sold,
92		-	given or provided to low-income customers, moderate-income
93		-	customers or low-income service organizations.
94		-	(F) The department may allow preferences to projects that serve low-
95		-	income customers and shared clean energy facilities that benefit
96		-	customers who reside in environmental justice communities. Substitute Senate Bill No. 176
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98		-	Public Act No. 22-14 4 of 6
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100		-	(G) The department may create incentives or other financing
101		-	mechanisms to encourage participation by low-income customers.
102		-	(H) The department may require that not more than fifty per cent of
103		-	the total capacity of each shared clean energy facility is sold to
104		-	commercial customers.
105		-	(7) For purposes of this subsection:
106		-	(A) "Environmental justice community" has the same meaning as
107		-	provided in subsection (a) of section 22a-20a;
108		-	(B) "Low-income customer" means an in-state retail end user of an
109		-	electric distribution company (i) whose income does not exceed [eighty]
110		-	sixty per cent of the [area] state median income, [as defined by the
111		-	United States Department of Housing and Urban Development, ]
112		-	adjusted for family size, or (ii) that is an affordable housing facility; [as
113		-	defined in section 8-39a;]
114		-	(C) "Low-income service organization" means a for-profit or
115		-	nonprofit organization that provides service or assistance to low-income
116		-	individuals;
117		-	(D) "Moderate-income customer" means an in-state retail end user of
118		-	an electric distribution company whose income is between [eighty] sixty
119		-	per cent and one hundred per cent of the area median income as defined
120		-	by the United States Department of Housing and Urban Development,
121		-	adjusted for family size.
122		-	Sec. 3. Subparagraph (A) of subdivision (1) of subsection (c) of section
123		-	16-244z of the 2022 supplement to the general statutes is repealed and
124		-	the following is substituted in lieu thereof (Effective October 1, 2022):
125		-	(c) (1) (A) The aggregate total megawatts available to all customers
126		-	utilizing a procurement and tariff offered by electric distribution Substitute Senate Bill No. 176
	81	+	establish consumer protections for subscribers and potential subscribers 52
	82	+	of such a facility, including, but not limited to, disclosures to be made 53
	83	+	when selling or reselling a subscription. 54
	84	+	(C) Such program shall utilize one or more tariff mechanisms with 55
	85	+	the electric distribution companies for a term not to exceed twenty years, 56
	86	+	subject to approval by the Public Utilities Regulatory Authority, to pay 57
	87	+	for the purchase of any energy products and renewable energy 58
	88	+	certificates produced by any eligible shared clean energy facility, or to 59
	89	+	deliver any billing credit of any such facility. 60
	90	+	(D) The department shall limit subscribers to (i) low-income 61
	91	+	customers, (ii) moderate-income customers, (iii) small business 62
	92	+	customers, (iv) state or municipal customers, (v) commercial customers, 63
	93	+	and (vi) residential customers who can demonstrate, pursuant to criteria 64
	94	+	determined by the department in the program requirements 65
	95	+	recommended by the department and approved by the authority, that 66
	96	+	they are unable to utilize the tariffs offered pursuant to subsection (b) of 67
	97	+	this section. 68
	98	+	(E) The department shall require that (i) not less than [ten] twenty per 69
	99	+	cent of the total capacity of each shared clean energy facility is sold, 70
	100	+	given or provided to low-income customers, and (ii) [in addition to the 71
	101	+	requirement of clause (i) of this subparagraph,] not less than [ten] sixty 72
	102	+	per cent of the total capacity of each shared clean energy facility is sold, 73
	103	+	given or provided to low-income customers, moderate-income 74
	104	+	customers or low-income service organizations. 75
	105	+	(F) The department may allow preferences to projects that serve low-76
	106	+	income customers and shared clean energy facilities that benefit 77
	107	+	customers who reside in environmental justice communities. 78
	108	+	(G) The department may create incentives or other financing 79
	109	+	mechanisms to encourage participation by low-income customers. 80
	110	+	(H) The department may require that not more than fifty per cent of 81
	111	+	the total capacity of each shared clean energy facility is sold to 82 Substitute Bill No. 176
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128		-	Public Act No. 22-14 5 of 6
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130		-	companies pursuant to subsection (a) of this section shall be up to
131		-	eighty-five megawatts in year one and increase by up to an additional
132		-	[eighty-five] one hundred sixty megawatts per year in each of the years
133		-	two through six of such a tariff, provided the total megawatts available
134		-	to customers eligible under subparagraph (A) of subdivision (2) of
135		-	subsection (a) of this section shall not exceed ten megawatts per year,
136		-	the total megawatts available to customers eligible under subparagraph
137		-	(B) of subdivision (2) of subsection (a) of this section shall not exceed
138		-	[fifty] one hundred megawatts per year and the total megawatts
139		-	available to customers eligible under subparagraph (C) of subdivision
140		-	(2) of subsection (a) of this section shall not exceed [twenty-five] fifty
141		-	megawatts per year. The authority shall monitor the competitiveness of
142		-	any procurements authorized pursuant to subsection (a) of this section
143		-	and may adjust the annual purchase amount established in this
144		-	subsection or other procurement parameters to maintain
145		-	competitiveness. Any megawatts not allocated in any given year shall
146		-	[not] roll into the next year's available megawatts. The obligation to
147		-	purchase energy and renewable energy certificates shall be apportioned
148		-	to electric distribution companies based on their respective distribution
149		-	system loads, as determined by the authority.
150		-	Sec. 4. Section 16-244z of the 2022 supplement to the general statutes
151		-	is amended by adding subsection (f) as follows (Effective October 1, 2022):
152		-	(NEW) (f) Notwithstanding the size -to-load provisions of
153		-	subdivision (4) of subsection (a) of this section, the entire rooftop space
154		-	of a customer's own premises developed pursuant to subparagraph (B)
155		-	of subdivision (1) of subsection (a) of this section and owned by a
156		-	commercial or industrial customer may be used for purposes of
157		-	electricity generation and participation in the solicitation conducted by
158		-	each electric distribution company pursuant to subdivision (4) of
159		-	subsection (a) of this section.
160		-	Sec. 5. (Effective from passage) The Office of Policy and Management Substitute Senate Bill No. 176
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	118	+	commercial customers. 83
	119	+	(7) For purposes of this subsection: 84
	120	+	(A) "Environmental justice community" has the same meaning as 85
	121	+	provided in subsection (a) of section 22a-20a; 86
	122	+	(B) "Low-income customer" means an in-state retail end user of an 87
	123	+	electric distribution company (i) whose income does not exceed [eighty] 88
	124	+	sixty per cent of the [area] state median income, [as defined by the 89
	125	+	United States Department of Housing and Urban Development, ] 90
	126	+	adjusted for family size, or (ii) that is an affordable housing facility; [as 91
	127	+	defined in section 8-39a;] 92
	128	+	(C) "Low-income service organization" means a for-profit or 93
	129	+	nonprofit organization that provides service or assistance to low-income 94
	130	+	individuals; 95
	131	+	(D) "Moderate-income customer" means an in-state retail end user of 96
	132	+	an electric distribution company whose income is between eighty per 97
	133	+	cent and one hundred per cent of the area median income as defined by 98
	134	+	the United States Department of Housing and Urban Development, 99
	135	+	adjusted for family size. 100
	136	+	Sec. 3. Subparagraph (A) of subdivision (1) of subsection (c) of section 101
	137	+	16-244z of the 2022 supplement to the general statutes is repealed and 102
	138	+	the following is substituted in lieu thereof (Effective October 1, 2022): 103
	139	+	(c) (1) (A) The aggregate total megawatts available to all customers 104
	140	+	utilizing a procurement and tariff offered by electric distribution 105
	141	+	companies pursuant to subsection (a) of this section shall be up to 106
	142	+	eighty-five megawatts in year one and increase by up to an additional 107
	143	+	[eighty-five] one hundred sixty megawatts per year in each of the years 108
	144	+	two through six of such a tariff, provided the total megawatts available 109
	145	+	to customers eligible under subparagraph (A) of subdivision (2) of 110
	146	+	subsection (a) of this section shall not exceed ten megawatts per year, 111
	147	+	the total megawatts available to customers eligible under subparagraph 112 Substitute Bill No. 176
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164		-	shall, in consultation with the Connecticut Conference of Municipalities,
165		-	the Connecticut Council of Small Towns and industry representatives,
166		-	study the application of property taxes to commercial solar generation
167		-	projects with a nameplate capacity rating of fifty kilowatts or more. Not
168		-	later than January 1, 2023, the Office of Policy and Management shall
169		-	submit a report to the joint standing committees of the General
170		-	Assembly having cognizance of matters relating to energy and
171		-	technology and planning and development. Such report shall include,
172		-	but need not be limited to, (1) a summary of the current statutory
173		-	framework for the application of personal and real estate property taxes
174		-	on commercial solar generation projects with a nameplate capacity
175		-	rating of fifty kilowatts or more, and (2) recommendations for statutory
176		-	changes that would remove inconsistencies in the current statutory
177		-	framework and allow for equitable property tax treatment of
178		-	commercial solar generation projects across the state.
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	154	+	(B) of subdivision (2) of subsection (a) of this section shall not exceed 113
	155	+	[fifty] one hundred megawatts per year and the total megawatts 114
	156	+	available to customers eligible under subparagraph (C) of subdivision 115
	157	+	(2) of subsection (a) of this section shall not exceed [twenty-five] fifty 116
	158	+	megawatts per year. The authority shall monitor the competitiveness of 117
	159	+	any procurements authorized pursuant to subsection (a) of this section 118
	160	+	and may adjust the annual purchase amount established in this 119
	161	+	subsection or other procurement parameters to maint ain 120
	162	+	competitiveness. Any megawatts not allocated in any given year shall 121
	163	+	[not] roll into the next year's available megawatts. The obligation to 122
	164	+	purchase energy and renewable energy certificates shall be apportioned 123
	165	+	to electric distribution companies based on their respective distribution 124
	166	+	system loads, as determined by the authority. 125
	167	+	Sec. 4. Section 16-244z of the 2022 supplement to the general statutes 126
	168	+	is amended by adding subsection (f) as follows (Effective October 1, 2022): 127
	169	+	(NEW) (f) Notwithstanding the size-to-load provisions of 128
	170	+	subdivision (4) of subsection (a) of this section, the entire rooftop space 129
	171	+	of a customer's own premises developed pursuant to subparagraph (B) 130
	172	+	of subdivision (1) of subsection (a) of this section and owned by a 131
	173	+	commercial or industrial customer may be used for purposes of 132
	174	+	electricity generation and participation in the solicitation conducted by 133
	175	+	each electric distribution company pursuant to subdivision (4) of 134
	176	+	subsection (a) of this section. 135
	177	+	This act shall take effect as follows and shall amend the following
	178	+	sections:
	179	+
	180	+	Section 1 October 1, 2022 16-244z(a)(2)
	181	+	Sec. 2 October 1, 2022 16-244z(a)(6) and (7)
	182	+	Sec. 3 October 1, 2022 16-244z(c)(1)(A)
	183	+	Sec. 4 October 1, 2022 16-244z
	184	+
	185	+	ET Joint Favorable Subst.
179	186