An Act Concerning The Procurement Of Energy Derived From Anaerobic Digestion.
Impact
If enacted, SB00845 is expected to enhance the state’s renewable energy portfolio and promote sustainable energy sources. It allows electric distribution companies to enter into power purchase agreements to secure energy and environmental attributes for periods of up to twenty years. The bill also mandates that any revenue from the sale of renewable energy credits must benefit customers, adding a layer of consumer protection.
Summary
SB00845 is a bill that concerns the procurement of energy derived from anaerobic digestion, a process that breaks down organic material to produce energy. The bill empowers the Commissioner of Energy and Environmental Protection to solicit proposals for energy procurement from providers of anaerobic digestion. The proposed energy sources must be in line with the interests of ratepayers and contribute to reducing greenhouse gas emissions according to established policy goals. Additionally, the total capacity of selected proposals is capped at ten megawatts.
Contention
Notable points of contention may arise around the authority given to the Commissioner and the potential impact on the existing energy market structure. Critics may argue that centralized procurement could limit market competition and innovation. Furthermore, stakeholders may also raise concerns about oversight mechanisms, as agreements are subject to review by the Public Utilities Regulatory Authority (PURA). If PURA does not make a decision within forty-five days, agreements are automatically deemed approved, which could raise questions about regulatory adequacy.