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Connecticut Senate Bill SB00997

Connecticut 2023 Regular Session

Connecticut Senate Bill SB00997 Compare Versions

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55 General Assembly Raised Bill No. 997
66 January Session, 2023
77 LCO No. 3823
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1010 Referred to Committee on ENERGY AND TECHNOLOGY
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1313 Introduced by:
1414 (ET)
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1919 AN ACT CONCERNING REVISIONS TO THE CLEAN ENERGY
2020 STATUTES.
2121 Be it enacted by the Senate and House of Representatives in General
2222 Assembly convened:
2323
2424 Section 1. Section 16-244z of the general statutes is repealed and the 1
2525 following is substituted in lieu thereof (Effective October 1, 2023): 2
2626 (a) (1) (A) On or before September 1, 2018, the Public Utilities 3
2727 Regulatory Authority shall initiate a proceeding to establish a 4
2828 procurement plan for each electric distribution company pursuant to 5
2929 this subsection and may give a preference to technologies 6
3030 manufactured, researched or developed in the state, provided such 7
3131 procurement plan is consistent with and contributes to the requirements 8
3232 to reduce greenhouse gas emissions in accordance with section 22a-9
3333 200a. Each electric distribution company shall develop such 10
3434 procurement plan in consultation with the Department of Energy and 11
3535 Environmental Protection and shall submit such procurement plan to 12
3636 the authority not later than sixty days after the authority initiates the 13
3737 proceeding pursuant to this subdivision, provided the department shall 14
3838 submit the program requirements pursuant to subparagraph (C) of this 15 Raised Bill No. 997
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4444 subdivision on or before July 1, 2019. The authority may require such 16
4545 electric distribution companies to conduct separate solicitations 17
4646 pursuant to subdivision (4) of this subsection for the resources in 18
4747 subparagraphs (A), (B) and (C) of said subdivision, including separate 19
4848 solicitations based upon the size of such resources to allow for a 20
4949 diversity of selected projects. 21
5050 (B) On or before September 1, 2018, the authority shall initiate a 22
5151 proceeding to establish tariffs that provide for twenty-year terms of 23
5252 service described in subdivision (3) of this subsection for each electric 24
5353 distribution company pursuant to subparagraphs (A) and (B) of 25
5454 subdivision (2) of this subsection. In such proceeding, the authority shall 26
5555 establish the period of time that will be used for calculating the net 27
5656 amount of energy produced by a facility and not consumed, provided 28
5757 the authority shall assess whether to incorporate time-of-use rates or 29
5858 other dynamic pricing and such period of time shall be either (i) in real 30
5959 time, (ii) in one day, (iii) in any fraction of a day not to exceed one day, 31
6060 or (iv) in any period of time greater than one day up to and including 32
6161 one month. In such proceeding, the authority shall consider the findings 33
6262 of the study of the value of distributed energy resources conducted 34
6363 pursuant to section 16a-3o. The rate for such tariffs shall be established 35
6464 by the solicitation pursuant to subdivision (2) of this subsection. 36
6565 (C) On or before September 1, 2018, the Department of Energy and 37
6666 Environmental Protection shall (i) initiate a proceeding to develop 38
6767 program requirements and tariff proposals for shared clean energy 39
6868 facilities eligible pursuant to subparagraph (C) of subdivision (2) of this 40
6969 subsection, including, but not limited to, the requirements in 41
7070 subdivision (6) of this subsection, and (ii) establish either or both of the 42
7171 following tariff proposals: (I) A tariff proposal that includes a price cap 43
7272 on a cents-per-kilowatt-hour basis for any procurement for such 44
7373 resources based on the procurement results of any other procurement 45
7474 issued pursuant to this subsection, and (II) a tariff proposal that includes 46
7575 a tariff rate for customers eligible under subparagraph (C) of 47
7676 subdivision (2) of this subsection based on energy policy goals identified 48
7777 by the department in the Comprehensive Energy Strategy pursuant to 49 Raised Bill No. 997
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8383 section 16a-3d. On or before July 1, 2019, the department shall submit 50
8484 any such program requirements and tariff proposals to the authority for 51
8585 review and approval. On or before January 1, 2020, the authority shall 52
8686 approve or modify such program requirements and tariff proposals 53
8787 submitted by the department. If the authority approves two tariff 54
8888 proposals pursuant to this subparagraph, the authority shall determine 55
8989 how much of the total compensation authorized for customers eligible 56
9090 under this subparagraph pursuant to subparagraph (A) of subdivision 57
9191 (1) of subsection (c) of this section shall be available under each tariff. 58
9292 (2) [Not later than July 1, 2022, and annually thereafter] Not less than 59
9393 once per year, each electric distribution company shall jointly or 60
9494 individually solicit and file with the Public Utilities Regulatory 61
9595 Authority for its approval one or more projects selected resulting from 62
9696 any procurement issued pursuant to subdivision (1) of this subsection 63
9797 that are consistent with the tariffs approved by the authority pursuant 64
9898 to subparagraphs (B) and (C) of subdivision (1) of this subsection and 65
9999 that are applicable to (A) customers that own or develop new generation 66
100100 projects on a customer's own premises that are less than five megawatts 67
101101 in size, serve the distribution system of [the] an electric distribution 68
102102 company, are constructed after the solicitation conducted pursuant to 69
103103 subdivision (4) of this subsection to which the customer is responding, 70
104104 and use a Class I renewable energy source that either (i) uses anaerobic 71
105105 digestion, or (ii) has emissions of no more than 0.07 pounds per 72
106106 megawatt-hour of nitrogen oxides, 0.10 pounds per megawatt-hour of 73
107107 carbon monoxide, 0.02 pounds per megawatt-hour of volatile organic 74
108108 compounds and one grain per one hundred standard cubic feet, (B) 75
109109 customers that own or develop new generation projects on a customer's 76
110110 own premises that are less than five megawatts in size, serve the 77
111111 distribution system of [the] an electric distribution company, are 78
112112 constructed after the solicitation conducted pursuant to subdivision (4) 79
113113 of this subsection to which the customer is responding, and use a Class 80
114114 I renewable energy source that emits no pollutants, and (C) customers 81
115115 that own or develop new generation projects that are a shared clean 82
116116 energy facility, consistent with the program requirements developed 83 Raised Bill No. 997
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122122 pursuant to subparagraph (C) of subdivision (1) of this subsection. For 84
123123 purposes of this section, "shared clean energy facility" means a Class I 85
124124 renewable energy source, as defined in section 16-1, that (i) is served by 86
125125 an electric distribution company, as defined in section 16-1, (ii) [is within 87
126126 the same electric distribution company service territory as the 88
127127 individual billing meters for subscriptions, (iii)] has a nameplate 89
128128 capacity rating of five megawatts or less, and [(iv)] (iii) has at least two 90
129129 subscribers. Any project that is eligible pursuant to subparagraph (C) of 91
130130 this subdivision shall not be eligible pursuant to subparagraph (A) or 92
131131 (B) of this subdivision. 93
132132 (3) A customer that is eligible pursuant to subparagraph (A) or (B) of 94
133133 subdivision (2) of this subsection may elect in any such solicitation to 95
134134 utilize either (A) a tariff for the purchase of all energy and renewable 96
135135 energy certificates on a cents-per-kilowatt-hour basis, or (B) a tariff for 97
136136 the purchase of any energy produced by a facility and not consumed in 98
137137 the period of time established by the authority pursuant to 99
138138 subparagraph (B) of subdivision (1) of this subsection and all renewable 100
139139 energy certificates generated by such facility on a cents-per-kilowatt-101
140140 hour basis, subject to any tariff terms, conditions or other stipulations of 102
141141 the authority. 103
142142 (4) Each electric distribution company shall jointly or individually 104
143143 conduct an annual solicitation or solicitations, as determined by the 105
144144 authority, for the purchase of energy and renewable energy certificates 106
145145 produced by eligible generation projects under this subsection over the 107
146146 duration of each applicable tariff. Generation projects eligible pursuant 108
147147 to subparagraphs (A) and (B) of subdivision (2) of this subsection shall 109
148148 be sized so as not to exceed the load at the customer's individual electric 110
149149 meter or a set of electric meters, when such meters are combined for 111
150150 billing purposes, [from the electric distribution company providing 112
151151 service to such customer, as determined by such electric distribution 113
152152 company] as determined by the authority, unless such customer is a 114
153153 state, municipal or agricultural customer, then such generation project 115
154154 shall be sized so as not to exceed the load at such customer's individual 116
155155 electric meter or a set of electric meters at the same customer premises, 117 Raised Bill No. 997
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161161 when such meters are combined for billing purposes, and the load of up 118
162162 to five state, municipal or agricultural beneficial accounts, as defined in 119
163163 section 16-244u, identified by such state, municipal or agricultural 120
164164 customer, and such state, municipal or agricultural customer may 121
165165 include the load of up to five additional nonstate or municipal beneficial 122
166166 accounts, as defined in section 16-244u, when sizing such generation 123
167167 project, provided such accounts are critical facilities, as defined in 124
168168 subdivision (2) of subsection (a) of section 16-243y, and are connected to 125
169169 a microgrid. 126
170170 (5) The maximum selected purchase price of energy and renewable 127
171171 energy certificates on a cents-per-kilowatt-hour basis in any given 128
172172 solicitation shall not exceed such maximum selected purchase price for 129
173173 the same resources in the prior year's solicitation, unless the authority 130
174174 makes a determination that there are changed circumstances in any 131
175175 given year. For the first year solicitation issued pursuant to this 132
176176 subsection, the authority shall establish a cap for the selected purchase 133
177177 price for energy and renewable energy certificates on a cents-per-134
178178 kilowatt-hour basis for any resources authorized under this subsection. 135
179179 (6) The program requirements for shared clean energy facilities 136
180180 developed pursuant to subparagraph (C) of subdivision (1) of this 137
181181 subsection shall include, but not be limited to, the following: 138
182182 (A) The department shall allow cost-effective projects of various 139
183183 nameplate capacities that may allow for the construction of multiple 140
184184 projects in the service area of each electric distribution company that 141
185185 operates within the state. 142
186186 (B) The department shall determine the billing credit for any 143
187187 subscriber of a shared clean energy facility that may be issued through 144
188188 the electric distribution companies' monthly billing systems, and 145
189189 establish consumer protections for subscribers and potential subscribers 146
190190 of such a facility, including, but not limited to, disclosures to be made 147
191191 when selling or reselling a subscription. 148
192192 (C) Such program shall utilize one or more tariff mechanisms with 149 Raised Bill No. 997
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198198 the electric distribution companies for a term not to exceed twenty years, 150
199199 subject to approval by the Public Utilities Regulatory Authority, to pay 151
200200 for the purchase of any energy products and renewable energy 152
201201 certificates produced by any eligible shared clean energy facility, or to 153
202202 deliver any billing credit of any such facility. 154
203203 (D) The department shall limit subscribers to (i) low-income 155
204204 customers, (ii) moderate-income customers, (iii) small business 156
205205 customers, (iv) state or municipal customers, (v) commercial customers, 157
206206 and (vi) residential customers who can demonstrate, pursuant to criteria 158
207207 determined by the department in the program requirements 159
208208 recommended by the department and approved by the authority, that 160
209209 they are unable to utilize the tariffs offered pursuant to subsection (b) of 161
210210 this section. 162
211211 (E) The department shall require that (i) not less than twenty per cent 163
212212 of the total capacity of each shared clean energy facility is sold, given or 164
213213 provided to low-income customers, and (ii) not less than sixty per cent 165
214214 of the total capacity of each shared clean energy facility is sold, given or 166
215215 provided to low-income customers, moderate-income customers or 167
216216 low-income service organizations. 168
217217 (F) The department may allow preferences to projects that serve low-169
218218 income customers and shared clean energy facilities that benefit 170
219219 customers who reside in environmental justice communities. 171
220220 (G) The department may create incentives or other financing 172
221221 mechanisms to encourage participation by low-income customers. 173
222222 (H) The department may require that not more than [fifty] forty per 174
223223 cent of the total capacity of each shared clean energy facility is sold to 175
224224 commercial customers. 176
225225 (7) For purposes of this subsection: 177
226226 (A) "Environmental justice community" has the same meaning as 178
227227 provided in subsection (a) of section 22a-20a; 179 Raised Bill No. 997
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233233 (B) "Low-income customer" means an in-state retail end user of an 180
234234 electric distribution company (i) whose income does not exceed sixty 181
235235 per cent of the state median income, adjusted for family size, or (ii) that 182
236236 is an affordable housing facility; 183
237237 (C) "Low-income service organization" means a for-profit or 184
238238 nonprofit organization that provides service or assistance to low-income 185
239239 individuals; 186
240240 (D) "Moderate-income customer" means an in-state retail end user of 187
241241 an electric distribution company whose income is between sixty per cent 188
242242 and one hundred per cent of the [area] state median income, [as defined 189
243243 by the United States Department of Housing and Urban Development,] 190
244244 adjusted for family size. 191
245245 (b) (1) On or before July 1, 2020, the authority shall initiate a 192
246246 proceeding to establish (A) tariffs for each electric distribution company 193
247247 pursuant to subdivision (2) of this subsection, (B) a rate for such tariffs, 194
248248 which may be based upon the results of one or more competitive 195
249249 solicitations issued pursuant to subsection (a) of this section, or on the 196
250250 average cost of installing the generation project and a reasonable rate of 197
251251 return that is just, reasonable and adequate, as determined by the 198
252252 authority, and shall be guided by the Comprehensive Energy Strategy 199
253253 prepared pursuant to section 16a-3d, and (C) the period of time that will 200
254254 be used for calculating the net amount of energy produced by a facility 201
255255 and not consumed, provided the authority shall assess whether to 202
256256 incorporate time-of-use rates or other dynamic pricing and such period 203
257257 of time shall be either (i) in real time, (ii) in one day, (iii) in any fraction 204
258258 of a day not to exceed one day, or (iv) in any period of time greater than 205
259259 one day up to and including one month. In such proceeding, the 206
260260 authority shall consider the findings of the study of the value of 207
261261 distributed energy resources conducted pursuant to section 16a-3o. The 208
262262 authority shall issue a final decision in such proceeding on or before July 209
263263 1, 2021. The authority may modify such rate for new customers under 210
264264 this subsection based on changed circumstances and may establish an 211
265265 interim tariff rate prior to the expiration of the residential solar 212 Raised Bill No. 997
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271271 investment program pursuant to subsection (b) of section 16-245ff as an 213
272272 alternative to such program, provided any residential customer 214
273273 utilizing a tariff pursuant to this subsection at such customer's electric 215
274274 meter shall not be eligible for any incentives offered pursuant to section 216
275275 16-245ff at the same such electric meter and any residential customer 217
276276 utilizing any incentives offered pursuant to section 16-245ff at such 218
277277 customer's electric meter shall not be eligible for a tariff pursuant to this 219
278278 subsection at the same such electric meter. 220
279279 (2) On and after January 1, 2022, each electric distribution company 221
280280 shall offer the following options to residential customers for the 222
281281 purchase of products generated from a Class I renewable energy source 223
282282 that is located on a customer's own premises and has a nameplate 224
283283 capacity rating of twenty-five kilowatts or less for a term not to exceed 225
284284 twenty years: (A) A tariff for the purchase of all energy and renewable 226
285285 energy certificates on a cents-per-kilowatt-hour basis; and (B) a tariff for 227
286286 the purchase of any energy produced and not consumed in the period 228
287287 of time established by the authority pursuant to subparagraph (C) of 229
288288 subdivision (1) of this subsection and all renewable energy certificates 230
289289 generated by such facility on a cents-per-kilowatt-hour basis, subject to 231
290290 any tariff terms, conditions or other stipulations of the authority. A 232
291291 residential customer shall select either option authorized pursuant to 233
292292 subparagraph (A) or (B) of this subdivision, consistent with the 234
293293 requirements of this section. Such generation projects shall be sized so 235
294294 as not to exceed the load at the customer's individual electric meter or, 236
295295 in the case of a multifamily dwelling that qualifies under this subsection, 237
296296 the load of the premises, from the electric distribution company 238
297297 providing service to such customer, pursuant to any rules established 239
298298 by the authority and as determined by such electric distribution 240
299299 company. For purposes of this section, "residential customer" means a 241
300300 customer of a single-family dwelling, a multifamily dwelling consisting 242
301301 of two to four units, or a multifamily dwelling consisting of five or more 243
302302 units, provided in the case of a multifamily dwelling consisting of five 244
303303 or more units, (i) not less than sixty per cent of the units of the 245
304304 multifamily dwelling are occupied by persons and families with income 246 Raised Bill No. 997
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310310 that is not more than sixty per cent of the area median income for the 247
311311 municipality in which it is located, as determined by the United States 248
312312 Department of Housing and Urban Development, or (ii) such 249
313313 multifamily dwelling is determined to be affordable housing by the 250
314314 Public Utilities Regulatory Authority in consultation with the 251
315315 Department of Energy and Environmental Protection, Department of 252
316316 Housing, Connecticut Green Bank, Connecticut Housing Finance 253
317317 Authority and United States Department of Housing and Urban 254
318318 Development. In the case of a multifamily dwelling consisting of five or 255
319319 more units, a generation project shall only qualify under this subsection 256
320320 if: (I) Each of the dwelling units receives an appropriate share of the 257
321321 benefits from the generation project, and (II) no greater than an 258
322322 appropriate share of the benefits from the generation project is used to 259
323323 offset common area usage. The Public Utilities Regulatory Authority 260
324324 shall initiate an uncontested proceeding to implement the distribution 261
325325 of the benefits from the generation project pursuant to this section. 262
326326 (c) (1) (A) The aggregate total megawatts available to all customers 263
327327 utilizing a procurement and tariff offered by electric distribution 264
328328 companies pursuant to subsection (a) of this section shall be up to 265
329329 eighty-five megawatts in year one and increase by up to an additional 266
330330 one hundred sixty megawatts per year [in each of the years two through 267
331331 six of such a tariff] on and after January 1, 2023, provided the total 268
332332 megawatts available to customers eligible under subparagraph (A) of 269
333333 subdivision (2) of subsection (a) of this section shall not exceed ten 270
334334 megawatts per year, the total megawatts available to customers eligible 271
335335 under subparagraph (B) of subdivision (2) of subsection (a) of this 272
336336 section shall not exceed one hundred megawatts per year and the total 273
337337 megawatts available to customers eligible under subparagraph (C) of 274
338338 subdivision (2) of subsection (a) of this section shall not exceed fifty 275
339339 megawatts per year. The authority shall monitor the competitiveness of 276
340340 any procurements authorized pursuant to subsection (a) of this section 277
341341 and may adjust the annual purchase amount established in this 278
342342 subsection or other procurement parameters to maintain 279
343343 competitiveness. Any megawatts not allocated in any given year shall 280 Raised Bill No. 997
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349349 roll into the next year's available megawatts. The obligation to purchase 281
350350 energy and renewable energy certificates shall be apportioned [to 282
351351 electric distribution companies based on their respective distribution 283
352352 system loads,] as determined by the authority. 284
353353 (B) The electric distribution companies shall offer any tariffs 285
354354 developed pursuant to subsection (b) of this section for six years. At the 286
355355 end of the tariff term pursuant to subparagraph (B) of subdivision (2) of 287
356356 subsection (b) of this section, residential customers that elected the 288
357357 option pursuant to said subparagraph shall be credited all cents-per-289
358358 kilowatt-hour charges pursuant to the tariff rate for such customer for 290
359359 energy produced by the Class I renewable energy source against any 291
360360 energy that is consumed in real time by such residential customer. 292
361361 (C) The authority shall establish tariffs for the purchase of energy on 293
362362 a cents-per-kilowatt-hour basis at the expiration of any tariff terms 294
363363 authorized pursuant to this section. 295
364364 (2) [At the beginning of year six of the procurements authorized 296
365365 pursuant to this subsection, the] The department, in consultation with 297
366366 the authority, shall assess the tariff offerings pursuant to this section and 298
367367 determine if such offerings are competitive compared to the cost of the 299
368368 [technologies. The department] technologies and shall report, in 300
369369 accordance with section 11-4a, the results of such determination to the 301
370370 General Assembly not later than January 15, 2027. 302
371371 (3) For any tariff established pursuant to this section, the authority 303
372372 shall examine how to incorporate the following energy system benefits 304
373373 into the rate established for any such tariff: (A) Energy storage systems 305
374374 that provide electric distribution benefits, (B) location of a facility on the 306
375375 distribution system, (C) time-of-use rates or other dynamic pricing, and 307
376376 (D) other energy policy benefits identified in the Comprehensive Energy 308
377377 Strategy prepared pursuant to section 16a-3d. 309
378378 (d) In accordance with subsection (h) of section 16-245a, the authority 310
379379 shall determine which of the following two options is in the best interest 311
380380 of ratepayers and shall direct each electric distribution company to 312 Raised Bill No. 997
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386386 either (1) retire the renewable energy certificates it purchases pursuant 313
387387 to subsections (a) and (b) of this section on behalf of all ratepayers to 314
388388 satisfy the obligations of all electric suppliers and electric distribution 315
389389 companies providing standard service or supplier of last resort service 316
390390 pursuant to section 16-245a, or (2) sell such renewable energy certificates 317
391391 into the New England Power Pool Generation information system 318
392392 renewable energy credit market. The authority shall establish 319
393393 procedures for the retirement of such renewable energy certificates. Any 320
394394 net revenues from the sale of products purchased in accordance with 321
395395 this section shall be credited to customers through a nonbypassable fully 322
396396 reconciling component of electric rates for all customers of the electric 323
397397 distribution company. 324
398398 (e) The costs prudently and reasonably incurred by an electric 325
399399 distribution company pursuant to this section shall be recovered on a 326
400400 timely basis through a nonbypassable fully reconciling component of 327
401401 electric rates for all customers of the electric distribution company. Any 328
402402 net revenues from the sale of products purchased in accordance with 329
403403 any tariff offered pursuant to this section shall be credited to customers 330
404404 through the same fully reconciling rate component for all customers of 331
405405 such electric distribution company. 332
406406 (f) Notwithstanding the size-to-load provisions of subdivision (4) of 333
407407 subsection (a) of this section, the entire rooftop space of a customer's 334
408408 own premises developed pursuant to subparagraph (B) of subdivision 335
409409 (1) of subsection (a) of this section and owned by a commercial or 336
410410 industrial customer may be used for purposes of electricity generation 337
411411 and participation in the solicitation conducted by each electric 338
412412 distribution company pursuant to subdivision (4) of subsection (a) of 339
413413 this section. 340
414414 (g) State, municipal and agricultural customers shall be exempt from 341
415415 the requirement that generation projects owned or developed pursuant 342
416416 to subparagraph (A) or (B) of subdivision (2) of subsection (a) of this 343
417417 section be located on a customer's own premises. 344 Raised Bill No. 997
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423423 This act shall take effect as follows and shall amend the following
424424 sections:
425425
426426 Section 1 October 1, 2023 16-244z
427427
428428 Statement of Purpose:
429429 To (1) facilitate the procurement of projects under the state's renewable
430430 energy programs by authorizing joint procurement of such projects and
431431 permitting multiple solicitations per year, (2) modify and clarify the
432432 rules of these programs and electric utilities' required purchases under
433433 the programs, and (3) make conforming changes.
434434 [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
435435 that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
436436 underlined.]
437437