25 LC 55 0476 House Bill 402 By: Representatives Frye of the 122 nd , Bell of the 75 th , Drenner of the 85 th , Sanchez of the 42 nd , Paris of the 142 nd , and others A BILL TO BE ENTITLED AN ACT To amend Titles 46 and 50 of the Official Code of Georgia Annotated, relating to public 1 utilities and public transportation and state government, respectively, so as to provide for the2 establishment of renewable energy sources and renewable energy portfolio standard goals3 by the Public Service Commission for electric service providers; to provide for the inclusion4 of existing or planned renewable energy resources in integrated resource plans; to authorize5 the Georgia Environmental Finance Authority to finance and perform certain duties in6 connection with projects relating to renewable energy facilities; to provide for limited7 liability; to revise and provide for definitions; to provide for rules and regulations; to provide8 legislative findings; to provide for related matters; to repeal conflicting laws; and for other9 purposes.10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11 SECTION 1.12 Title 46 of the Official Code of Georgia Annotated, relating to public utilities and public13 transportation, is amended in Article 1 of Chapter 3, relating to generation and distribution14 of electricity generally, by adding a new part to read as follows:15 H. B. 402 - 1 - 25 LC 55 0476 "Part 616 46-3-69.5.17 (a) It is the intent of the legislature to recognize the economic, environmental, and fuel18 diversity benefits of renewable energy resources; to encourage further development of19 these resources; and to encourage the establishment of a market for renewable energy in20 Georgia using this state's renewable energy resources. These efforts can reduce the21 consumption of fossil fuels for the generation of electricity and reduce this state's22 dependence on finite, nonrenewable resources. Accordingly, the General Assembly finds23 and declares that goals should be established for electric service providers to guide them24 in incorporating renewable resources into their resource portfolios.25 (b) The purpose of this part is to lessen Georgia's dependence on fossil fuels and the26 exposure of Georgia's consumers to volatile and rising prices for coal and natural gas by27 encouraging the greater use of renewable energy by establishing goals for electric service28 providers in implementing portfolio standards for renewable energy.29 46-3-69.6.30 As used in this part, the term:31 (1) 'Biomass material' means organic matter, excluding fossil fuels and black liquor,32 including agricultural crops; plants; trees; wood; wood wastes and residues; sawmill33 waste; sawdust; wood chips; bark chips; forest thinning, harvesting, or clearing residues;34 wood waste from pallets or other wood demolition debris; peanut shells; cotton plants;35 corn stalks; and plant matter, including aquatic plants, grasses, stalks, vegetation, and36 residues, including hulls, shells, or cellulose-containing fibers.37 (2) 'Electric membership corporation' means a corporation organized under Article 4 of38 this chapter.39 H. B. 402 - 2 - 25 LC 55 0476 (3) 'Electric service provider' means any electric utility, electric membership corporation,40 or municipal electric provider engaged in the business of distributing electricity to retail41 or wholesale electric customers in this state.42 (4) 'Low impact hydropower' means energy produced by a dam and powerhouse that is:43 (A) Certified as low impact by the Low Impact Hydropower Institute; or44 (B) Evaluated by the commission as being compliant with the following standards:45 (i) Providing river flows that are healthy for fish, wildlife, and water quality,46 including seasonal flow fluctuations where appropriate;47 (ii) Protecting water quality in the river;48 (iii) Providing effective fish passage and protecting fish from entrainment;49 (iv) Taking sufficient action to protect, mitigate, and enhance environmental50 conditions in the watershed;51 (v) Avoiding negative impact on species classified as threatened or endangered by52 the federal or state government;53 (vi) Avoiding inappropriate impact on cultural resources;54 (vii) Providing free access to the water and accommodating recreational activities on55 the river; and56 (viii) Avoiding any recommendation for removal by a federal or state agency due to57 adverse environmental impacts.58 (5) 'Municipal electric provider' means an entity that provides electric services and that59 is owned or operated by a municipal corporation.60 (6) 'Renewable energy' means electrical energy produced from or by renewable energy61 sources.62 (7) 'Renewable energy sources' means any of the following: wind; solar energy; low63 impact hydropower; geothermal resources; ocean thermal energy; wave or tidal energy;64 biofuels derived entirely from organic sources other than coal, petroleum, or natural gas;65 the combustion of landfill gas; methane gas resulting from the anaerobic decomposition66 H. B. 402 - 3 - 25 LC 55 0476 of organic materials; plasma arc; pyrolysis; gasification; biomass materials; postconsumer67 waste paper; forest related sources, including mill residues, waste pallets, crates, and68 dunnage; or forest and agricultural biomass sources, including orchard tree crops,69 vineyard, grain, legumes, sugar, switchgrass, other crop by-products or residues, and70 precommercial thinning, slash, brush, or landscape trimmings, but not including71 old-growth timber.72 46-3-69.7.73 (a) On or before July 1, 2026, the commission shall establish renewable energy sources74 and renewable energy portfolio standard goals for electric service providers to reach on an75 annual basis. Such goals shall not exceed 20 percent of annual net electricity sales for each76 electric service provider. In developing the renewable energy sources and renewable77 energy portfolio standard goals, the commission shall evaluate current and forecasted78 levelized costs in cents per kilowatt hour for all electric service providers through 2030 and79 current and forecasted installed capacity in kilowatts for each renewable energy generation80 method for all electric service providers through 2050.81 (b) Electric service providers are encouraged to meet and maintain the renewable energy82 sources and renewable energy portfolio standard goals established pursuant to83 subsection (a) of this Code section.84 46-3-69.8.85 On or before July 1, 2026, the commission shall adopt rules and regulations to carry out the86 provisions of this part. Such rules and regulations shall, at a minimum:87 (1) Provide for a reporting system to monitor voluntary compliance with this part. Such88 reporting system shall require electric service providers to report whether they are subject89 to energy portfolio requirements in more than one state and the amount of such90 requirements, if applicable, and to indicate the sources of energy used to voluntarily91 H. B. 402 - 4 - 25 LC 55 0476 comply with the renewable energy sources and renewable energy portfolio standard goals92 established pursuant to subsection (a) of Code Section 46-3-46.7 and the requirements93 of other applicable states; and94 (2) Provide for annual reporting by all electric service providers of renewable energy95 usage, how the generation costs of renewable energy compare to costs from other96 generation sources, and the average price paid for the sources of the renewable energy97 produced."98 SECTION 2.99 Said title is further amended in Code Section 46-3A-1, relating to definitions relative to100 integrated resource planning, by revising paragraph (7) as follows:101 "(7) 'Plan' means an integrated resource plan which contains the utility's electric demand102 and energy forecast for at least a 20 year period, contains the utility's program for meeting103 the requirements shown in its forecast in an economical and reliable manner, contains the104 utility's analysis of all capacity resource options, including both demand-side and105 supply-side options, and sets forth the utility's assumptions and conclusions with respect106 to the effect of each capacity resource option on the future cost and reliability of electric107 service. The plan shall also:108 (A) Contain the size and type of facilities which are expected to be owned or operated109 in whole or in part by such utility and the construction of which is expected to110 commence during the ensuing ten years or such longer period as the commission deems111 necessary and shall identify all existing facilities intended to be removed from service112 during such period or upon completion of such construction;113 (B) Contain practical alternatives to the fuel type and method of generation of the114 proposed electric generating facilities and set forth in detail the reasons for selecting the115 fuel type and method of generation;116 H. B. 402 - 5 - 25 LC 55 0476 (C) Contain a statement of the estimated impact of proposed and alternative generating 117 plants on the environment and the means by which potential adverse impacts will be118 avoided or minimized;119 (D) Indicate in detail the projected demand for electric energy for a 20 year period and120 the basis for determining the projected demand;121 (E) Describe the utility's relationship to other utilities in regional associations, power122 pools, and networks;123 (F) Identify and describe all major research projects and programs which will continue124 or commence in the succeeding three years and set forth the reasons for selecting125 specific areas of research;126 (G) Identify and describe existing and planned programs and policies to discourage127 inefficient and excessive power use;128 (H) Identify and describe existing and planned renewable energy resources, if any, 129 used by the utility and whether such existing and planned renewable energy resources130 are sufficient to comply with the renewable energy sources and renewable energy131 portfolio standard goals established pursuant to subsection (a) of Code Section132 46-3-46.7; and133 (H)(I) Provide any other information as may be required by the commission."134 SECTION 3.135 Title 50 of the Official Code of Georgia Annotated, relating to state government, is amended136 in Code Section 50-23-4, relating to definitions relative to the Georgia Environmental137 Finance Authority, by revising paragraphs (5) and (6) and adding a new paragraph to read138 as follows:139 "(5) 'Environmental facilities' means any projects, structures, and other real or personal140 property acquired, rehabilitated, constructed, or planned:141 H. B. 402 - 6 - 25 LC 55 0476 (A) For the purposes of supplying, distributing, and treating water and diverting, 142 channeling, or controlling water flow and head including, but not limited to, surface or143 ground water, canals, reservoirs, channels, basins, dams, aqueducts, standpipes,144 penstocks, conduits, pipelines, mains, pumping stations, water distribution systems,145 compensating reservoirs, intake stations, waterworks or sources of water supply, wells,146 purification or filtration plants or other treatment plants and works, connections, water147 meters, mechanical equipment, electric generating equipment, rights of flowage or148 division and other plant structures, equipment, conveyances, real or personal property149 or rights therein and appurtenances, furnishings, accessories, and devices thereto150 necessary or useful and convenient for the collection, conveyance, distribution,151 pumping, treatment, storing, or disposing of water;152 (B) For the purposes of collecting, treating, or disposing of sewage including, but not153 limited to, main, trunk, intercepting, connecting, lateral, outlet, or other sewers, outfall,154 pumping stations, treatment and disposal plants, ground water rechange basins,155 backflow prevention devices, sludge dewatering or disposal equipment and facilities,156 clarifiers, filters, phosphorus removal equipment and other plants, soil absorption157 systems, innovative systems or equipment, structures, equipment, vehicles,158 conveyances, real or personal property or rights therein, and appurtenances thereto159 necessary or useful and convenient for the collection, conveyance, pumping, treatment,160 neutralization, storing, and disposing of sewage;161 (C) For the purposes of collecting, treating, recycling, composting, or disposing of162 solid waste, including, but not limited to, trucks, dumpsters, intermediate reception163 stations or facilities, transfer stations, incinerators, shredders, treatment plants, landfills,164 landfill equipment, barrels, binders, barges, alternative technologies and other plant165 structures, equipment, conveyances, improvements, real or personal property or rights166 therein, and appurtenances, furnishings, accessories, and devices thereto necessary or167 useful and convenient for the collection, treatment, or disposal of solid waste; or 168 H. B. 402 - 7 - 25 LC 55 0476 (D) For the purposes of carrying out a community land conservation project or a state 169 land conservation project pursuant to Chapter 22 of Title 36; or 170 (E) For the purposes of generating, storing, and transmitting renewable energy, as such171 term is defined in Code Section 46-3-69.6, including, but not limited to, generation172 facilities, battery storage facilities, electric transformers, transmission lines, equipment,173 vehicles, conveyances, real or personal property or rights therein and appurtenances,174 furnishings, accessories, and devices thereto necessary or useful and convenient for the175 generation, storing, and transmitting of such renewable energy.176 (6) 'Environmental services' means the provision, collectively or individually, of water177 facilities, sewerage facilities, solid waste facilities, renewable energy facilities,178 community land conservation projects or state land conservation projects pursuant to179 Chapter 22 Title 36, or management services."180 "(12.1) 'Renewable energy facility' means any environmental facility described in181 subparagraph (E) of paragraph (5) of this Code section."182 SECTION 4.183 Said title is further amended in subsection (b) of Code Section 50-23-5, relating to purpose,184 powers, and duties, by striking "and" at the end of paragraph (33), by striking the period and185 inserting in lieu thereof "; and" at the end of subparagraph (J) of paragraph (34), and by186 adding a new paragraph to read as follows:187 "(35) To promulgate and adopt rules and regulations to carry out the purposes of this188 chapter."189 SECTION 5.190 Said title is further amended in Code Section 50-23-12, relating to personal liability of191 members, officers, and employees of the authority, by revising paragraph (2) as follows:192 H. B. 402 - 8 - 25 LC 55 0476 "(2) The construction, ownership, maintenance, or operation of any solid waste system, 193 sewerage system, renewable energy system, environmental facility, or water system194 owned by a local government; or"195 SECTION 6.196 All laws and parts of laws in conflict with this Act are repealed.197 H. B. 402 - 9 -