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Connecticut House Bill HB07087

Connecticut 2025 Regular Session

Connecticut House Bill HB07087 Compare Versions

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5-General Assembly Substitute Bill No. 7087
5+General Assembly Raised Bill No. 7087
66 January Session, 2025
7+LCO No. 4788
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10+Referred to Committee on ENERGY AND TECHNOLOGY
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13+Introduced by:
14+(ET)
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11-
12-AN ACT CONCERNING COMMUNITY SOLAR ENERGY GENERATING
13-SYSTEMS.
19+AN ACT CONCERNING SHARED CLEAN ENERGY SUBSCRIPTIONS.
1420 Be it enacted by the Senate and House of Representatives in General
1521 Assembly convened:
1622
1723 Section 1. (NEW) (Effective October 1, 2025) (a) As used in this section 1
1824 and section 2 of this act: 2
19-(1) "Authority" means the Public Utilities Regulatory Authority; 3
20-(2) "Baseline annual usage" means (A) a subscriber's accumulated 4
21-electricity use in kilowatt–hours for the twelve months before the 5
22-subscriber's most recent subscription, or (B) for a subscriber that does 6
23-not have a record of twelve months of electricity use at the time of the 7
24-subscriber's most recent subscription, an estimate of the subscriber's 8
25-accumulated twelve months of electricity use in kilowatt–hours, 9
26-determined in a manner approved by the authority; 10
27-(3) "Community solar energy generating system" means a solar 11
28-photovoltaic system, with or without a connected energy storage 12
29-system, that (A) is located in the state or in the territory of the regional 13
30-independent system operator, as defined in section 16-1 of the general 14
31-statutes, (B) is connected to the electric meter of more than one 15
32-subscriber or is a separate facility with its own electric meter, (C) credits 16
33-such system's generated electricity, or the value of such system's 17 Substitute Bill No. 7087
25+(1) "Billing credit" means the monetary value of the electricity, in 3
26+kilowatt-hours, generated by a shared clean energy merchant facility 4
27+that is allocated to a subscriber of such facility to offset the subscriber's 5
28+electricity bill; 6
29+(2) "Class I renewable energy source" has the same meaning as 7
30+provided in section 16-1 of the general statutes; 8
31+(3) "Electric distribution company" has the same meaning as 9
32+provided in section 16-1 of the general statutes; 10
33+(4) "Energy storage system" has the same meaning as provided in 11
34+section 16-1 of the general statutes; 12
35+(5) "Individual billing meter" means an individual electric meter or a 13
36+Raised Bill No. 7087
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38-generated electricity, to the bills of the subscribers to such system 18
39-through virtual net energy metering, (D) has at least two subscribers, (E) 19
40-does not have any individual subscriber that constitutes more than sixty 20
41-per cent of such system's subscriptions, and (F) is owned by any person 21
42-or entity that is not an electric distribution company; 22
43-(4) "Electric distribution company" has the same meaning as 23
44-provided in section 16-1 of the general statutes; 24
45-(5) "Electric supplier" has the same meaning as provided in section 25
46-16-1 of the general statutes; 26
47-(6) "Program" means the community solar energy generating systems 27
48-pilot program; 28
49-(7) "Subscriber" means a retail customer of an electric distribution 29
50-company that (A) holds a subscription to a community solar energy 30
51-generating system, and (B) has identified one or more individual meters 31
52-or accounts to which the subscription shall be attributed; 32
53-(8) "Subscriber organization" means (A) a person that owns or 33
54-operates a community solar energy generating system, or (B) the 34
55-collective group of subscribers of a community solar energy generating 35
56-system; 36
57-(9) "Subscription" means the portion of the electricity generated by a 37
58-community solar energy generating system that is credited to a 38
59-subscriber; 39
60-(10) "Unsubscribed energy" means any community solar energy 40
61-generating system output in kilowatt–hours that is not allocated to any 41
62-subscriber; and 42
63-(11) "Virtual net energy metering" means the measurement of the 43
64-difference between the kilowatt–hours or value of electricity that is 44
65-supplied by an electric company and the kilowatt–hours or value of 45
66-electricity attributable to a subscription to a community solar energy 46
67-generating system that is fed back to the electric grid over a subscriber's 47 Substitute Bill No. 7087
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42+set of electric meters, when such meters are combined for billing 14
43+purposes, within the service territory of the subscriber's electric 15
44+distribution company; 16
45+(6) "Shared clean energy merchant facility" means a facility that has 17
46+at least two subscribers and is (A) a Class I renewable energy source that 18
47+is located in the state or in the territory of the regional independent 19
48+system operator, or (B) an energy storage system that is located in the 20
49+state or in the territory of the regional independent system operator that 21
50+either (i) stores energy generated by a Class I renewable energy source, 22
51+or (ii) purchases and retires certificates produced by a wind or solar 23
52+power generating unit located in the United States in an amount 24
53+equivalent to all energy dispatched by such energy storage system; 25
54+(7) "Shared clean energy subscription organization" or "organization" 26
55+means an entity that provides subscriber services; 27
56+(8) "Subscriber" means a retail end user of an electric distribution 28
57+company in the state who (A) has entered into a subscription with a 29
58+shared clean energy subscription organization, and (B) has identified an 30
59+individual billing meter to which the subscription shall be attributed; 31
60+(9) "Subscriber services" means the services a shared clean energy 32
61+subscription organization provides to a subscriber pursuant to a 33
62+subscription, including, but not limited to, such organization entering 34
63+into an agreement on behalf of a subscriber for the purpose of receiving 35
64+billing credits at a discounted rate; and 36
65+(10) "Subscription" means a beneficial use of a shared clean energy 37
66+merchant facility, including, but not limited to, (A) a percentage interest 38
67+in the total amount of electricity produced by such facility, (B) a set 39
68+amount of electricity produced by such facility, (C) the total electricity 40
69+requirements of the subscriber, or (D) a portion of the electricity 41
70+requirement of the subscriber. 42
71+(b) On or before January 1, 2026, the Public Utilities Regulatory 43
72+Raised Bill No. 7087
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72-billing period. 48
73-(b) On or before December 1, 2025, the Public Utilities Regulatory 49
74-Authority shall initiate a proceeding to establish a community solar 50
75-energy generating systems pilot program. The program shall comply 51
76-with the following: 52
77-(1) All electric customer rate classes shall be eligible to participate in 53
78-the program; 54
79-(2) Subscribers receiving standard service, as described in section 16-55
80-244c of the general statutes, and subscribers served by an electric 56
81-supplier may hold subscriptions to the same community solar energy 57
82-generating system; 58
83-(3) A subscriber organization shall (A) determine how to allocate 59
84-subscriptions to subscribers, and (B) notify each electric distribution 60
85-company or electricity supplier that provides services to its subscribers 61
86-about the regulations the authority adopts under subsection (c) of this 62
87-section; 63
88-(4) An electric distribution company shall use the tariff structure 64
89-adopted under subsection (c) of this section to provide each subscriber 65
90-with the credits calculated by a subscriber organization; 66
91-(5) A subscriber may not receive credit for virtual net energy 67
92-metering excess generation that exceeds two hundred per cent of the 68
93-subscriber's baseline annual usage; 69
94-(6) A subscriber organization may sell to an electric distribution 70
95-company any unsubscribed energy generated by a community solar 71
96-energy generating system under such company's process for purchasing 72
97-the output from qualifying facilities at the amount such energy would 73
98-cost to procure on the electric market in the state. A subscriber 74
99-organization may transfer any unsubscribed or overproduced energy 75
100-credits not sold to an electric distribution company to the Connecticut 76
101-Green Bank pursuant to the program established pursuant to section 2 77 Substitute Bill No. 7087
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78+Authority shall initiate a proceeding to develop program requirements 44
79+that allow retail end users of an electric distribution company to 45
80+purchase subscriptions of shared clean energy merchant facilities for the 46
81+purpose of obtaining a billing credit toward such user's electric bill. The 47
82+program shall be administered as follows: 48
83+(1) A shared clean energy subscription organization may: (A) Build, 49
84+own and operate one or more shared clean energy merchant facilities, 50
85+(B) contract with a third-party entity to build, own or operate one or 51
86+more such facilities on behalf of such organization, and (C) sell 52
87+subscriptions, directly or through a third-party, of such facilities to 53
88+subscribers. 54
89+(2) A shared clean energy subscription organization may enter into 55
90+an agreement with a subscriber that (A) allows such subscriber to 56
91+purchase a subscription in a shared clean energy merchant facility, and 57
92+(B) requires such organization to provide shared clean energy 58
93+subscriber services to such subscriber. Any such agreement shall 59
94+provide that a subscriber may cancel their subscription upon thirty days' 60
95+written notice to such organization, and no such organization may 61
96+charge any subscriber a cancellation fee. 62
97+(3) (A) A shared clean energy subscription organization that enters 63
98+into an agreement with a subscriber pursuant to this subsection shall 64
99+provide notice of such agreement to the electric distribution company 65
100+that provides service to such subscriber. Such organization shall include 66
101+in such notice the value in dollars of the subscriber's billing credit 67
102+pursuant to such agreement. 68
103+(B) Upon receipt of the notice described in subparagraph (A) of this 69
104+subdivision, the electric distribution company shall apply a billing 70
105+credit toward such subscriber's customer account with the electric 71
106+distribution company. 72
107+(C) An electric distribution company shall offer a shared clean energy 73
108+subscription organization the option to utilize a consolidated billing 74
109+Raised Bill No. 7087
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106-of this act; 78
107-(7) An electric distribution company shall offer a subscriber 79
108-organization the option to utilize a consolidated billing mechanism 80
109-whereby the electric distribution company administers billing credits or 81
110-charges for subscribers concerning the operations of the community 82
111-solar energy generating system; 83
112-(8) An electric distribution company shall use energy generated from 84
113-a community solar energy generating system to offset purchases from 85
114-wholesale electricity suppliers for standard service; 86
115-(9) Any costs associated with small generator interconnection 87
116-standards approved or adopted by the authority shall be paid by the 88
117-subscriber organization; 89
118-(10) A subscriber organization may petition an electric distribution 90
119-company to coordinate the interconnection and commencement of 91
120-operations of a community solar energy generating system after the 92
121-authority adopts regulations required under subsection (c) of this 93
122-section; 94
123-(11) A subscriber organization may contract with a third party for the 95
124-financing, construction, ownership or operation of a community solar 96
125-energy generating system; 97
126-(12) A municipal electric utility or cooperative utility may participate 98
127-in such program; and 99
128-(13) The authority shall limit such program to a total nameplate 100
129-capacity rating of six hundred megawatts in the aggregate. 101
130-(c) Not later than February 1, 2026, the authority shall adopt 102
131-regulations, in accordance with the provisions of chapter 54 of the 103
132-general statutes, to implement the provisions of this section, including 104
133-regulations establishing (1) consumer protections for electric customers, 105
134-(2) a tariff structure for a subscriber organization or an electric 106
135-distribution company to provide a subscriber with the kilowatt–hours 107 Substitute Bill No. 7087
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115+mechanism whereby the electric distribution company administers 75
116+billing credits for subscribers or disbursements to such organization. An 76
117+electric distribution company providing such consolidated billing shall 77
118+make payments to any shared clean energy subscription organization 78
119+not more than fifteen days after generating an electric statement for the 79
120+value of the billing credit. 80
121+(4) Notwithstanding the provisions of section 16-245d of the general 81
122+statutes, an electric distribution company shall provide a line item credit 82
123+on any bill issued by such company to a subscriber of a shared clean 83
124+energy subscription organization that shall be identified as a shared 84
125+clean energy subscription credit. 85
126+(5) A shared clean energy subscription organization shall arrange for 86
127+electricity to be delivered to the electric distribution company for the 87
128+benefit of subscribers under this section. The value of such electricity 88
129+shall be the same as if the subscriber produced such electricity behind 89
130+the subscriber's electric meter. 90
131+(6) A shared clean energy subscription organization shall be entitled 91
132+to submit content to be posted on the Internet web site of the Energy 92
133+Conservation Management Board to inform customers of an electric 93
134+distribution company of potential offers and subscriptions provided by 94
135+such organization, including offers or subscriptions that may be used by 95
136+such customers in combination with electric supply offers from other 96
137+sources. Each electric distribution shall place a message on each 97
138+customer electric bill informing such customer how to subscribe to a 98
139+shared clean energy merchant facility. 99
140+(c) An electric distribution company may recover its costs and 100
141+investments that have been prudently incurred and its estimated 101
142+revenues lost, as determined by the Public Utilities Regulatory 102
143+Authority, from implementing the provisions of this section. The 103
144+authority shall, after a hearing held pursuant to the provisions of 104
145+chapter 54 of the general statutes, determine the appropriate mechanism 105
146+Raised Bill No. 7087
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140-or value of the subscriber's subscription at the retail rate for electricity 108
141-in the state, (3) a calculation for virtual net energy metering determined 109
142-by the authority, (4) a protocol for electric distribution companies, 110
143-electricity suppliers and subscriber organizations to communicate the 111
144-information necessary to calculate and provide monthly electric bill 112
145-credits and any yearly net excess generation payments required by this 113
146-section, and (5) a protocol for a subscriber organization to coordinate 114
147-with an electric distribution company for the interconnection of a 115
148-community solar energy generating system with the distribution grid 116
149-operated by such company and the commencement of operations of 117
150-such system. 118
151-(d) Any contract relating to a community solar energy generating 119
152-system or subscriber organization executed during the program shall 120
153-not be affected by the termination of such program. 121
154-(e) After such program terminates, (1) a subscriber organization may 122
155-continue the operation of a community solar energy generating system 123
156-that began operation during the program, including the creation and 124
157-trading of subscriptions, and (2) each electric distribution company shall 125
158-continue to facilitate the operation of a community solar energy 126
159-generating system that began operation during the program, in 127
160-accordance with the program requirements and regulations adopted by 128
161-the authority pursuant to this section. 129
162-(f) A subscriber organization may submit content to be posted on the 130
163-Internet web site of the Energy Conservation Management Board, 131
164-established pursuant to section 16-245m of the general statutes, to 132
165-inform customers of an electric distribution company of potential offers 133
166-and subscriptions provided by such organization, including offers or 134
167-subscriptions that may be used by such customers in combination with 135
168-electric supply offers from other sources. Each electric distribution 136
169-company shall place a message on each customer electric bill informing 137
170-such customer how to subscribe to a community solar energy generating 138
171-system and information concerning offers on the Energy Conservation 139
172-Management Board's Internet web site. 140 Substitute Bill No. 7087
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152+to obtain such recovery in a timely manner, which mechanism may be 106
153+one or more of the following: (1) Approval of rates as provided in 107
154+sections 16-19 and 16-19e of the general statutes, (2) the energy 108
155+adjustment clause as provided in section 16-19b of the general statutes, 109
156+or (3) the federally mandated congestion charges, as defined in section 110
157+16-1 of the general statutes. 111
158+Sec. 2. (NEW) (Effective October 1, 2025, and applicable to taxable years 112
159+commencing on and after January 1, 2026) (a) As used in this section: 113
160+(1) "Commissioner" means the Commissioner of Economic and 114
161+Community Development; 115
162+(2) "Full-time employee" means an employee who is required to work 116
163+at least thirty-five or more hours per week at a shared clean energy 117
164+merchant facility. "Full-time employee" does not include an employee 118
165+employed at a temporary or seasonal job; and 119
166+(3) "Qualified shared clean energy subscription organization" means 120
167+a shared clean energy subscription organization that employs not fewer 121
168+than five full-time employees in the operation of a shared clean energy 122
169+merchant facility. 123
170+(b) For taxable income years commencing on or after January 1, 2026, 124
171+but not after January 1, 2030, the Commissioner of Revenue Services 125
172+shall grant a credit against the tax imposed under chapter 208 or 229 of 126
173+the general statutes, other than the liability imposed by section 12-707 127
174+of the general statutes, in an amount equal to the amount specified by 128
175+the Commissioner of Economic and Community Development in a tax 129
176+credit voucher issued by the Commissioner of Housing pursuant to 130
177+subsection (c) of this section. 131
178+(c) The commissioner shall administer a system of tax credit vouchers 132
179+for qualified shared clean energy subscription organizations. Such 133
180+voucher may be used as a credit against the tax to which such 134
181+organization is subject under chapter 208 or 229 of the general statutes, 135
182+Raised Bill No. 7087
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177-Sec. 2. (NEW) (Effective October 1, 2025) The Connecticut Green Bank, 141
178-created pursuant to section 16-245n of the general statutes, in 142
179-consultation with the Commissioner of Energy and Environmental 143
180-Protection, shall establish and administer a program to be known as the 144
181-"community solar energy credit sale program". Under such program, a 145
182-subscriber organization may transfer any unsubscribed or 146
183-overproduced energy credits held by such organization to the 147
184-Connecticut Green Bank for sale by the bank. Upon transfer, such 148
185-energy credits shall be owned by the bank until sold or otherwise 149
186-disposed of by the bank. The purchase price of such energy credits 150
187-received by the bank from a subscriber organization shall be determined 151
188-by the bank. Upon the sale of any such energy credit by the bank, the 152
189-purchase price of such energy credit, less a reasonable administrative 153
190-fee determined by the bank in consultation with the commissioner, shall 154
191-be remitted to the subscriber organization. 155
192-Sec. 3. (Effective October 1, 2025) (a) There is established a working 156
193-group to study the value and costs of the pilot program established 157
194-pursuant to section 1 of this act and make recommendations to the 158
195-Public Utilities Regulatory Authority on the advisability of establishing 159
196-a permanent program. Such working group shall consist of (1) the 160
197-chairperson of the Public Utilities Regulatory Authority, or the 161
198-chairperson's designee, (2) the Commissioner of Energy and 162
199-Environmental Protection, or the commissioner's designee, (3) the 163
200-Consumer Counsel, or the Consumer Counsel's designee, and (4) such 164
201-other persons as the chairperson of the Public Utilities Regulatory 165
202-Authority believes may serve to accomplish the purpose of the working 166
203-group. 167
204-(b) All initial appointments to the working group shall be made not 168
205-later than July 1, 2026. Any vacancy shall be filled by the chairperson of 169
206-the Public Utilities Regulatory Authority. The chairperson of the Public 170
207-Utilities Regulatory Authority shall serve as chairperson of the working 171
208-group and shall schedule the first meeting of the working group, which 172
209-shall be held not later than October 1, 2026. 173 Substitute Bill No. 7087
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214-(c) In conducting the study, the working group shall identify and 174
215-examine (1) a framework for valuation of the costs and benefits related 175
216-to community solar and virtual net energy metering, (2) the costs and 176
217-benefits of community solar energy generating systems to participating 177
218-subscribers and to nonsubscriber ratepayers, (3) an appropriate credit 178
219-mechanism and operational structure that allows a community 179
220-renewable solar energy generating system to minimize administrative 180
221-costs to an electric company, electric supplier or subscriber 181
222-organization, (4) the benefits to and the technical and cost impacts of 182
223-community solar programs and virtual net energy metering on an 183
224-electric company's distribution grid, (5) issues, benefits and concerns 184
225-related to the participation of electric companies, including investor–185
226-owned utilities, in community solar programs and projects, including 186
227-owners and operators of the projects, (6) whether and how community 187
228-solar projects or virtual net energy metering have a substantially 188
229-different technical impact on the distribution system than traditional net 189
230-energy metering, (7) any impacts of the program on the standard offer 190
231-service procurement process, (8) community solar programs and cost–191
232-benefit studies in other states, (9) whether and how community solar 192
233-programs can help reduce the cost of compliance with the renewable 193
234-energy portfolio standard, (10) how community solar energy generating 194
235-systems can impact locational marginal prices in the state, (11) the 195
236-impacts of the pilot program on energy costs, reliability and equitable 196
237-cost allocation for ratepayers, (12) how community solar project 197
238-developers can increase participation by low and moderate–income 198
239-retail electric customers in community solar projects, (13) the progress 199
240-of the community solar energy generating pilot program established 200
241-pursuant to section 1 of this act, in attracting low and moderate–income 201
242-retail electric customers, (14) whether community solar energy 202
243-generating systems are an overall net benefit in helping the state achieve 203
244-its distributed generation and renewable goals, and (15) any other 204
245-matters the working group considers relevant and appropriate. 205
246-(d) Not later than January 1, 2028, the chairperson of the Public 206
247-Utilities Regulatory Authority shall submit a report, in accordance with 207 Substitute Bill No. 7087
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252-the provisions of section 11-4a of the general statutes, to the joint 208
253-standing committee of the General Assembly having cognizance of 209
254-matters relating to energy and technology. Such report shall include an 210
255-analysis of the factors identified in subsection (c) of this section. The 211
256-working group shall terminate on the date that it submits such report or 212
257-January 1, 2028, whichever is later. 213
188+other than the liability imposed by section 12-707 of the general statutes. 136
189+To be eligible to claim a voucher under this section, a qualified shared 137
190+clean energy subscription organization shall apply to the commissioner 138
191+on a form prescribed by the commissioner. 139
192+(d) The commissioner shall adopt regulations, in accordance with the 140
193+provisions of chapter 54 of the general statutes, to implement the 141
194+provisions of this section, including, but not limited to, the conditions 142
195+for certification of a qualified shared clean energy subscription 143
196+organization applying for vouchers under this section. 144
258197 This act shall take effect as follows and shall amend the following
259198 sections:
260199
261200 Section 1 October 1, 2025 New section
262-Sec. 2 October 1, 2025 New section
263-Sec. 3 October 1, 2025 New section
201+Sec. 2 October 1, 2025, and
202+applicable to taxable years
203+commencing on and after
204+January 1, 2026
205+New section
264206
265-Statement of Legislative Commissioners:
266-Section 1(a)(3)(E) was rewritten for clarity; in Section 1(b)(6), "by" was
267-changed to "pursuant to" for accuracy; in Section 1(c)(1), "electric
268-consumer protections" was changed to "consumer protections for
269-electric customers" for clarity; in Section 3(c)(7), "identification of" was
270-deleted and "of the program" was added after "impacts" for clarity and
271-grammar; in Section 3(c)(8), "a review of" was deleted for grammar.
207+Statement of Purpose:
208+To (1) allow shared clean energy subscriber organizations to build, own
209+and operate electrical generation or storage facilities that generate or
210+store electricity from renewable sources, (2) allow any end user of an
211+electric distribution company to enter into a subscription with a shared
212+clean energy subscriber organization, and (3) require any electric
213+distribution company to provide billing credits to any end user who
214+enters into such a subscription.
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273-ET Joint Favorable Subst.
216+[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
217+that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
218+underlined.]
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