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General Assembly Raised Bill No. 7087
January Session, 2025
LCO No. 4788
Referred to Committee on ENERGY AND TECHNOLOGY
Introduced by:
(ET)
AN ACT CONCERNING SHARED CLEAN ENERGY SUBSCRIPTIONS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective October 1, 2025) (a) As used in this section 1
and section 2 of this act: 2
(1) "Billing credit" means the monetary value of the electricity, in 3
kilowatt-hours, generated by a shared clean energy merchant facility 4
that is allocated to a subscriber of such facility to offset the subscriber's 5
electricity bill; 6
(2) "Class I renewable energy source" has the same meaning as 7
provided in section 16-1 of the general statutes; 8
(3) "Electric distribution company" has the same meaning as 9
provided in section 16-1 of the general statutes; 10
(4) "Energy storage system" has the same meaning as provided in 11
section 16-1 of the general statutes; 12
(5) "Individual billing meter" means an individual electric meter or a 13
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set of electric meters, when such meters are combined for billing 14
purposes, within the service territory of the subscriber's electric 15
distribution company; 16
(6) "Shared clean energy merchant facility" means a facility that has 17
at least two subscribers and is (A) a Class I renewable energy source that 18
is located in the state or in the territory of the regional independent 19
system operator, or (B) an energy storage system that is located in the 20
state or in the territory of the regional independent system operator that 21
either (i) stores energy generated by a Class I renewable energy source, 22
or (ii) purchases and retires certificates produced by a wind or solar 23
power generating unit located in the United States in an amount 24
equivalent to all energy dispatched by such energy storage system; 25
(7) "Shared clean energy subscription organization" or "organization" 26
means an entity that provides subscriber services; 27
(8) "Subscriber" means a retail end user of an electric distribution 28
company in the state who (A) has entered into a subscription with a 29
shared clean energy subscription organization, and (B) has identified an 30
individual billing meter to which the subscription shall be attributed; 31
(9) "Subscriber services" means the services a shared clean energy 32
subscription organization provides to a subscriber pursuant to a 33
subscription, including, but not limited to, such organization entering 34
into an agreement on behalf of a subscriber for the purpose of receiving 35
billing credits at a discounted rate; and 36
(10) "Subscription" means a beneficial use of a shared clean energy 37
merchant facility, including, but not limited to, (A) a percentage interest 38
in the total amount of electricity produced by such facility, (B) a set 39
amount of electricity produced by such facility, (C) the total electricity 40
requirements of the subscriber, or (D) a portion of the electricity 41
requirement of the subscriber. 42
(b) On or before January 1, 2026, the Public Utilities Regulatory 43
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Authority shall initiate a proceeding to develop program requirements 44
that allow retail end users of an electric distribution company to 45
purchase subscriptions of shared clean energy merchant facilities for the 46
purpose of obtaining a billing credit toward such user's electric bill. The 47
program shall be administered as follows: 48
(1) A shared clean energy subscription organization may: (A) Build, 49
own and operate one or more shared clean energy merchant facilities, 50
(B) contract with a third-party entity to build, own or operate one or 51
more such facilities on behalf of such organization, and (C) sell 52
subscriptions, directly or through a third-party, of such facilities to 53
subscribers. 54
(2) A shared clean energy subscription organization may enter into 55
an agreement with a subscriber that (A) allows such subscriber to 56
purchase a subscription in a shared clean energy merchant facility, and 57
(B) requires such organization to provide shared clean energy 58
subscriber services to such subscriber. Any such agreement shall 59
provide that a subscriber may cancel their subscription upon thirty days' 60
written notice to such organization, and no such organization may 61
charge any subscriber a cancellation fee. 62
(3) (A) A shared clean energy subscription organization that enters 63
into an agreement with a subscriber pursuant to this subsection shall 64
provide notice of such agreement to the electric distribution company 65
that provides service to such subscriber. Such organization shall include 66
in such notice the value in dollars of the subscriber's billing credit 67
pursuant to such agreement. 68
(B) Upon receipt of the notice described in subparagraph (A) of this 69
subdivision, the electric distribution company shall apply a billing 70
credit toward such subscriber's customer account with the electric 71
distribution company. 72
(C) An electric distribution company shall offer a shared clean energy 73
subscription organization the option to utilize a consolidated billing 74
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mechanism whereby the electric distribution company administers 75
billing credits for subscribers or disbursements to such organization. An 76
electric distribution company providing such consolidated billing shall 77
make payments to any shared clean energy subscription organization 78
not more than fifteen days after generating an electric statement for the 79
value of the billing credit. 80
(4) Notwithstanding the provisions of section 16-245d of the general 81
statutes, an electric distribution company shall provide a line item credit 82
on any bill issued by such company to a subscriber of a shared clean 83
energy subscription organization that shall be identified as a shared 84
clean energy subscription credit. 85
(5) A shared clean energy subscription organization shall arrange for 86
electricity to be delivered to the electric distribution company for the 87
benefit of subscribers under this section. The value of such electricity 88
shall be the same as if the subscriber produced such electricity behind 89
the subscriber's electric meter. 90
(6) A shared clean energy subscription organization shall be entitled 91
to submit content to be posted on the Internet web site of the Energy 92
Conservation Management Board to inform customers of an electric 93
distribution company of potential offers and subscriptions provided by 94
such organization, including offers or subscriptions that may be used by 95
such customers in combination with electric supply offers from other 96
sources. Each electric distribution shall place a message on each 97
customer electric bill informing such customer how to subscribe to a 98
shared clean energy merchant facility. 99
(c) An electric distribution company may recover its costs and 100
investments that have been prudently incurred and its estimated 101
revenues lost, as determined by the Public Utilities Regulatory 102
Authority, from implementing the provisions of this section. The 103
authority shall, after a hearing held pursuant to the provisions of 104
chapter 54 of the general statutes, determine the appropriate mechanism 105
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to obtain such recovery in a timely manner, which mechanism may be 106
one or more of the following: (1) Approval of rates as provided in 107
sections 16-19 and 16-19e of the general statutes, (2) the energy 108
adjustment clause as provided in section 16-19b of the general statutes, 109
or (3) the federally mandated congestion charges, as defined in section 110
16-1 of the general statutes. 111
Sec. 2. (NEW) (Effective October 1, 2025, and applicable to taxable years 112
commencing on and after January 1, 2026) (a) As used in this section: 113
(1) "Commissioner" means the Commissioner of Economic and 114
Community Development; 115
(2) "Full-time employee" means an employee who is required to work 116
at least thirty-five or more hours per week at a shared clean energy 117
merchant facility. "Full-time employee" does not include an employee 118
employed at a temporary or seasonal job; and 119
(3) "Qualified shared clean energy subscription organization" means 120
a shared clean energy subscription organization that employs not fewer 121
than five full-time employees in the operation of a shared clean energy 122
merchant facility. 123
(b) For taxable income years commencing on or after January 1, 2026, 124
but not after January 1, 2030, the Commissioner of Revenue Services 125
shall grant a credit against the tax imposed under chapter 208 or 229 of 126
the general statutes, other than the liability imposed by section 12-707 127
of the general statutes, in an amount equal to the amount specified by 128
the Commissioner of Economic and Community Development in a tax 129
credit voucher issued by the Commissioner of Housing pursuant to 130
subsection (c) of this section. 131
(c) The commissioner shall administer a system of tax credit vouchers 132
for qualified shared clean energy subscription organizations. Such 133
voucher may be used as a credit against the tax to which such 134
organization is subject under chapter 208 or 229 of the general statutes, 135
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other than the liability imposed by section 12-707 of the general statutes. 136
To be eligible to claim a voucher under this section, a qualified shared 137
clean energy subscription organization shall apply to the commissioner 138
on a form prescribed by the commissioner. 139
(d) The commissioner shall adopt regulations, in accordance with the 140
provisions of chapter 54 of the general statutes, to implement the 141
provisions of this section, including, but not limited to, the conditions 142
for certification of a qualified shared clean energy subscription 143
organization applying for vouchers under this section. 144
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2025 New section
Sec. 2 October 1, 2025, and
applicable to taxable years
commencing on and after
January 1, 2026
New section
Statement of Purpose:
To (1) allow shared clean energy subscriber organizations to build, own
and operate electrical generation or storage facilities that generate or
store electricity from renewable sources, (2) allow any end user of an
electric distribution company to enter into a subscription with a shared
clean energy subscriber organization, and (3) require any electric
distribution company to provide billing credits to any end user who
enters into such a subscription.
[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.]