Bill Text: CT HB06360 | 2013 | General Assembly | Introduced
Bill Title: An Act Concerning Implementation Of Connecticut's Comprehensive Energy Strategy And Various Revisions To The Energy Statutes.
Spectrum: Strong Partisan Bill (Democrat 13-1)
Status: (Passed) 2013-07-08 - Signed by the Governor [HB06360 Detail]
Download: Connecticut-2013-HB06360-Introduced.html
General Assembly |
Governor's Bill No. 6360 | ||
January Session, 2013 |
LCO No. 3007 | ||
*03007__________* | |||
Referred to Committee on ENERGY AND TECHNOLOGY |
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Introduced by: |
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REP. SHARKEY, 88th Dist. REP. ARESIMOWICZ, 30th Dist. SEN. WILLIAMS, 29th Dist. SEN. LOONEY, 11th Dist. |
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AN ACT CONCERNING IMPLEMENTATION OF CONNECTICUT'S COMPREHENSIVE ENERGY STRATEGY.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 16-19tt of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(a) In any rate case initiated on [and] or after June 4, 2007, and before the effective date of this section, the Public Utilities Regulatory Authority shall order the state's gas and electric distribution companies to decouple distribution revenues from the volume of natural gas or electricity sales through any of the following strategies, singly or in combination: (1) A mechanism that adjusts actual distribution revenues to allowed distribution revenues, (2) rate design changes that increase the amount of revenue recovered through fixed distribution charges, or (3) a sales adjustment clause, rate design changes that increase the amount of revenue recovered through fixed distribution charges, or both. In making its determination on this matter, the authority shall consider the impact of decoupling on the gas or electric distribution company's return on equity and make necessary adjustments thereto.
(b) In any rate case initiated on or after the effective date of this section, the Public Utilities Regulatory Authority shall order the state's gas and electric distribution companies to decouple distribution revenues from the volume of natural gas and electricity sales through a mechanism that adjusts actual distribution revenues to allowed distribution revenues.
Sec. 2. Subsections (b) and (c) of section 16-32f of the general statutes are repealed and the following is substituted in lieu thereof (Effective from passage):
(b) Not later than October 1, 2005, and [annually] every three years thereafter, [a gas company] gas companies, as defined in section 16-1, in coordination with the electric distribution companies, shall submit to the [Public Utilities Regulatory Authority a gas] Energy Conservation Management Board a combined gas and electric conservation plan, in accordance with the provisions of this section, and applicable provisions of section 16-245m, as amended by this act, to implement cost-effective energy conservation programs and market transformation initiatives. All supply and conservation and load management options shall be evaluated and selected within an integrated supply and demand planning framework. Services provided under the plan shall be available to all gas company customers. Each gas company shall apply to the Energy Conservation Management Board for reimbursement for expenditures pursuant to the plan. The authority shall, in an uncontested proceeding during which the authority may hold a public hearing, approve, modify or reject the plan.
(c) (1) The Energy Conservation Management Board shall advise and assist [each such gas company] the gas and electric companies in the development and implementation of the plan submitted under subsection (b) of this section. Each program contained in the plan shall be reviewed by [each such gas company] the gas and electric companies and shall be either accepted, modified or rejected by the Energy Conservation Management Board before submission of the plan to the [authority] Commissioner of Energy and Environmental Protection for approval. The Energy Conservation Management Board shall, as part of its review, examine opportunities to offer joint programs providing similar efficiency measures that save more than one fuel resource or to otherwise coordinate programs targeted at saving more than one fuel resource. Any costs for joint programs shall be allocated equitably among the conservation programs.
(2) Programs included in the plan shall be screened through cost-effectiveness testing that compares the value and payback period of program benefits to program costs to ensure that the programs are designed to obtain [gas] energy savings whose value is greater than the costs of the program. Program cost-effectiveness shall be reviewed annually by the authority, or otherwise as is practicable. If the authority determines that a program fails the cost-effectiveness test as part of the review process, the program shall either be modified to meet the test or be terminated. On or before January 1, 2007, and annually thereafter, the board shall provide a report, in accordance with the provisions of section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to energy and the environment, that documents expenditures and funding for such programs and evaluates the cost-effectiveness of such programs conducted in the preceding year, including any increased cost-effectiveness owing to offering programs that save more than one fuel resource.
(3) Programs included in the plan may include, but are not limited to: (A) Conservation and load management programs, including programs that benefit low-income individuals; (B) research, development and commercialization of products or processes that are more energy-efficient than those generally available; (C) development of markets for such products and processes; (D) support for energy use assessment, engineering studies and services related to new construction or major building renovations; (E) the design, manufacture, commercialization and purchase of energy-efficient appliances, air conditioning and heating devices; (F) program planning and evaluation; (G) joint fuel conservation initiatives and programs targeted at saving more than one fuel resource; [and] (H) conservation of water resources; and (I) public education regarding conservation. Such support may be by direct funding, manufacturers' rebates, sale price and loan subsidies, leases and promotional and educational activities. The plan shall also provide for expenditures by the Energy Conservation Management Board for the retention of expert consultants and reasonable administrative costs, provided such consultants shall not be employed by, or have any contractual relationship with, a gas company. Such costs shall not exceed five per cent of the total cost of the plan.
Sec. 3. Section 16-245m of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(a) (1) On and after January 1, 2000, the Public Utilities Regulatory Authority shall assess or cause to be assessed a charge of three mills per kilowatt hour of electricity sold to each end use customer of an electric distribution company to be used to implement the program as provided in this section for conservation and load management programs but not for the amortization of costs incurred prior to July 1, 1997, for such conservation and load management programs.
(2) Notwithstanding the provisions of this section, receipts from such charge shall be disbursed to the resources of the General Fund during the period from July 1, 2003, to June 30, 2005, unless the authority shall, on or before October 30, 2003, issue a financing order for each affected electric distribution company in accordance with sections 16-245e to 16-245k, inclusive, to sustain funding of conservation and load management programs by substituting an equivalent amount, as determined by the authority in such financing order, of proceeds of rate reduction bonds for disbursement to the resources of the General Fund during the period from July 1, 2003, to June 30, 2005. The authority may authorize in such financing order the issuance of rate reduction bonds that substitute for disbursement to the General Fund for receipts of both the charge under this subsection and under subsection (b) of section 16-245n and also may, in its discretion, authorize the issuance of rate reduction bonds under this subsection and subsection (b) of section 16-245n that relate to more than one electric distribution company. The authority shall, in such financing order or other appropriate order, offset any increase in the competitive transition assessment necessary to pay principal, premium, if any, interest and expenses of the issuance of such rate reduction bonds by making an equivalent reduction to the charge imposed under this subsection, provided any failure to offset all or any portion of such increase in the competitive transition assessment shall not affect the need to implement the full amount of such increase as required by this subsection and by sections 16-245e to 16-245k, inclusive. Such financing order shall also provide if the rate reduction bonds are not issued, any unrecovered funds expended and committed by the electric distribution companies for conservation and load management programs, provided such expenditures were approved by the authority after August 20, 2003, and prior to the date of determination that the rate reduction bonds cannot be issued, shall be recovered by the companies from their respective competitive transition assessment or systems benefits charge but such expenditures shall not exceed four million dollars per month. All receipts from the remaining charge imposed under this subsection, after reduction of such charge to offset the increase in the competitive transition assessment as provided in this subsection, shall be disbursed to the Energy Conservation and Load Management Fund commencing as of July 1, 2003. Any increase in the competitive transition assessment or decrease in the conservation and load management component of an electric distribution company's rates resulting from the issuance of or obligations under rate reduction bonds shall be included as rate adjustments on customer bills.
(3) Repealed by P.A. 11-61, S. 187.
(b) The electric distribution company shall establish an Energy Conservation and Load Management Fund which shall be held separate and apart from all other funds or accounts. Receipts from the charge imposed under subsection (a) of this section shall be deposited into the fund. Any balance remaining in the fund at the end of any fiscal year shall be carried forward in the fiscal year next succeeding. Disbursements from the fund by electric distribution companies to carry out the plan [developed] approved by the commissioner under subsection (d) of this section shall be authorized by the Public Utilities Regulatory Authority. [upon its approval of such plan.]
(c) The Commissioner of Energy and Environmental Protection shall appoint and convene an Energy Conservation Management Board which shall include representatives of: (1) An environmental group knowledgeable in energy conservation program collaboratives; (2) [a representative of] the Office of Consumer Counsel; (3) the Attorney General; (4) the electric distribution companies in whose territories the activities take place for such programs; (5) a state-wide manufacturing association; (6) a chamber of commerce; (7) a state-wide business association; (8) a state-wide retail organization; (9) [a representative of] a municipal electric energy cooperative created pursuant to chapter 101a; (10) [two representatives selected by the gas companies in this state; and (11)] residential customers; [. Such] and (11) the Commissioner of Energy and Environmental Protection. The board shall also include two representatives selected by the gas companies. The members of the board shall serve for a period of five years and may be reappointed. Representatives of gas companies, electric distribution companies and the municipal electric energy cooperative shall be nonvoting members of the board. [The commissioner shall serve as the chairperson of the board.] The members of the board shall elect a chairperson from its voting members.
(d) (1) The Energy Conservation Management Board shall advise and assist the electric distribution and gas companies in the development [and implementation of a comprehensive plan, which plan shall be approved by the Department of Energy and Environmental Protection, to implement cost-effective energy conservation programs and market transformation initiatives. Such] of the Conservation and Load Management Plan. The Energy Conservation Management Board shall approve the plan before transmitting it to the Commissioner of Energy and Environmental Protection for approval. Following approval by the commissioner, the board shall assist the companies in implementing the plan and collaborate with the Connecticut Clean Energy Finance Investment Authority to further the goals of the plan. Said plan shall include a detailed budget sufficient to fund all energy efficiency that is cost effective or lower cost than acquisition of equivalent supply, and shall be reviewed and approved by the commissioner. To the extent that the budget in the plan approved by the commissioner exceeds the revenues collected pursuant to subdivision (1) of subsection (a) of this section, the Public Utilities Regulatory Authority shall ensure that the balance of revenues required to fund such budget is provided through a fully reconciling conservation adjustment mechanism. Said plan shall include steps that would be needed to achieve the goal of weatherization of eighty per cent of the state's residential units by 2030. Each program contained in the plan shall be reviewed by [the electric distribution company] such companies and either accepted or rejected by the Energy Conservation Management Board prior to submission to the [department] commissioner for approval. The Energy Conservation Management Board shall, as part of its review, examine opportunities to offer joint programs providing similar efficiency measures that save more than one fuel resource or otherwise to coordinate programs targeted at saving more than one fuel resource. Any costs for joint programs shall be allocated equitably among the conservation programs. The Energy Conservation Management Board shall give preference to projects that maximize the reduction of federally mandated congestion charges. The [Department] Commissioner of Energy and Environmental Protection shall, in an uncontested proceeding during which the [department] commissioner may hold a public [hearing] meeting, approve, modify or reject [the comprehensive] said plan prepared pursuant to this subsection. In the event that the Conservation and Load Management Plan finalized by the Commissioner of Energy and Environmental Protection contains any provision the implementation of which requires funding through new or amended rates or charges, the Public Utilities Regulatory Authority shall open a proceeding to review such provision, in accordance with the procedures established in sections 16-19, 16-19b and 16-19e to ensure that rates remain just and reasonable. Such proceeding shall be completed not later than sixty days after the Conservation and Load Management Plan is finalized.
(2) There shall be a joint committee of the Energy Conservation Management Board and the board of directors of the Connecticut Clean Energy Finance and Investment Authority. The [board and the advisory committee] boards shall each appoint members to such joint committee. The joint committee shall examine opportunities to coordinate the programs and activities funded by the Clean Energy Fund pursuant to section 16-245n with the programs and activities contained in the plan developed under this subsection and to provide financing to increase the benefits of programs funded by the plan so as to reduce the long-term cost, environmental impacts and security risks of energy in the state. Such joint committee shall hold its first meeting on or before August 1, 2005.
(3) Programs included in the plan developed under subdivision (1) of this subsection shall be screened through cost-effectiveness testing that compares the value and payback period of program benefits for all energy savings to program costs to ensure that programs are designed to obtain energy savings and system benefits, including mitigation of federally mandated congestion charges, whose value is greater than the costs of the programs. Program cost-effectiveness shall be reviewed by the Commissioner of Energy and Environmental Protection annually, or otherwise as is practicable, and shall incorporate the results of the evaluation process set forth in subdivision (4) of this subsection. If a program is determined to fail the cost-effectiveness test as part of the review process, it shall either be modified to meet the test or shall be terminated. On or before March 1, 2005, and on or before March first annually thereafter, the board shall provide a report, in accordance with the provisions of section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to energy and the environment that documents (A) expenditures and fund balances and evaluates the cost-effectiveness of such programs conducted in the preceding year, and (B) the extent to and manner in which the programs of such board collaborated and cooperated with programs, established under section 7-233y, of municipal electric energy cooperatives. To maximize the reduction of federally mandated congestion charges, programs in the plan may allow for disproportionate allocations between the amount of contributions to the Energy Conservation and Load Management Funds by a certain rate class and the programs that benefit such a rate class. Before conducting such evaluation, the board shall consult with the board of directors of the Connecticut Clean Energy Finance and Investment Authority. The report shall include a description of the activities undertaken during the reporting period. [jointly or in collaboration with the Clean Energy Fund established pursuant to subsection (c) of section 16-245n.]
(4) The [Department] Commissioner of Energy and Environmental Protection shall adopt an independent, comprehensive program evaluation, measurement and verification process to ensure the Energy Conservation Management Board's programs are administered appropriately and efficiently, comply with statutory requirements, programs and measures are cost effective, evaluation reports are accurate and issued in a timely manner, evaluation results are appropriately and accurately taken into account in program development and implementation, and information necessary to meet any third-party evaluation requirements is provided. An annual schedule and budget for evaluations as determined by the board shall be included in the plan filed with the [department] commissioner pursuant to subdivision (1) of this subsection. The electric distribution and gas company representatives and the representative of a municipal electric energy cooperative may not vote on board plans, budgets, recommendations, actions or decisions regarding such process or its program evaluations and their implementation. Program and measure evaluation, measurement and verification shall be conducted on an ongoing basis, with emphasis on impact and process evaluations, programs or measures that have not been studied, and those that account for a relatively high percentage of program spending. Evaluations shall use statistically valid monitoring and data collection techniques appropriate for the programs or measures being evaluated. All evaluations shall contain a description of any problems encountered in the process of the evaluation, including, but not limited to, data collection issues, and recommendations regarding addressing those problems in future evaluations. The board shall contract with one or more consultants not affiliated with the board members to act as an evaluation administrator, advising the board regarding development of a schedule and plans for evaluations and overseeing the program evaluation, measurement and verification process on behalf of the board. Consistent with board processes and approvals and [department] the Commissioner of Energy and Environmental Protection's decisions regarding evaluation, such evaluation administrator shall implement the evaluation process by preparing requests for proposals and selecting evaluation contractors to perform program and measure evaluations and by facilitating communications between evaluation contractors and program administrators to ensure accurate and independent evaluations. In the evaluation administrator's discretion and at his or her request, the electric distribution and gas companies shall communicate with the evaluation administrator for purposes of data collection, vendor contract administration, and providing necessary factual information during the course of evaluations. The evaluation administrator shall bring unresolved administrative issues or problems that arise during the course of an evaluation to the board for resolution, but shall have sole authority regarding substantive and implementation decisions regarding any evaluation. Board members, including electric distribution and gas company representatives, may not communicate with an evaluation contractor about an ongoing evaluation except with the express permission of the evaluation administrator, which may only be granted if the administrator believes the communication will not compromise the independence of the evaluation. The evaluation administrator shall file evaluation reports with the board and with the [department] Commissioner of Energy and Environmental Protection in its most recent uncontested proceeding pursuant to subdivision (1) of this subsection and the board shall post a copy of each report on its Internet web site. The board and its members, including electric distribution and gas company representatives, may file written comments regarding any evaluation with the [department] Commissioner of Energy and Environmental Protection or for posting on the board's Internet web site. Within fourteen days of the filing of any evaluation report, the [department] Commissioner of Energy and Environmental Protection, members of the board or other interested persons may request in writing, and the [department] commissioner shall conduct, a transcribed technical meeting to review the methodology, results and recommendations of any evaluation. Participants in any such transcribed technical meeting shall include the evaluation administrator, the evaluation contractor and the Office of Consumer Counsel at its discretion. On or before November 1, 2011, and annually thereafter, the board shall report to the joint standing committee of the General Assembly having cognizance of matters relating to energy, with the results and recommendations of completed program evaluations.
(5) Programs included in the plan developed under subdivision (1) of this subsection may include, but not be limited to: (A) Conservation and load management programs, including programs that benefit low-income individuals; (B) research, development and commercialization of products or processes which are more energy-efficient than those generally available; (C) development of markets for such products and processes; (D) support for energy use assessment, real-time monitoring systems, engineering studies and services related to new construction or major building renovation; (E) the design, manufacture, commercialization and purchase of energy-efficient appliances and heating, air conditioning and lighting devices; (F) program planning and evaluation; (G) indoor air quality programs relating to energy conservation; (H) joint fuel conservation initiatives programs targeted at reducing consumption of more than one fuel resource; (I) public education regarding conservation; and (J) demand-side technology programs recommended by the [integrated resources plan approved by the Department of Energy and Environmental Protection pursuant to section 16a-3a. The board shall periodically review contractors to determine whether they are qualified to conduct work related to such programs. Such support] Integrated Resources Plan. Support for such programs may be by direct funding, manufacturers' rebates, sale price and loan subsidies, leases and promotional and educational activities. The Energy Conservation Management Board shall periodically review contractors to determine whether they are qualified to conduct work related to such programs and to ensure that in making the selection of contractors to deliver programs, a fair and equitable process is followed. The plan shall also provide for expenditures by the [Energy Conservation Management Board] board for the retention of expert consultants and reasonable administrative costs provided such consultants shall not be employed by, or have any contractual relationship with, an electric distribution company. Such costs shall not exceed five per cent of the total revenue collected from the assessment.
(e) Deleted by P.A. 11-80, S. 33.
(f) No later than December 31, 2006, and no later than December thirty-first every five years thereafter, the Energy Conservation Management Board shall, after consulting with the Connecticut Clean Energy Finance and Investment Authority, conduct an evaluation of the performance of the programs and activities [of the fund] specified in the plan approved by the commissioner pursuant to subsection (d) of this section and submit a report, in accordance with the provisions of section 11-4a, of the evaluation to the joint standing committee of the General Assembly having cognizance of matters relating to energy.
(g) Repealed by P.A. 06-186, S. 91.
Sec. 4. Section 22a-174j of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
[Not later than May 1, 2006, the Public Utilities Regulatory Authority shall complete an investigation of the potential impact on electric reliability and electric rates created by promulgation of the regulations under this section. If such investigation concludes that there is no negative impact on such reliability and rates, not later than July 1, 2006, the Commissioner of Energy and Environmental Protection shall, in conjunction with the Public Utilities Regulatory Authority and by regulations adopted] The Commissioner of Energy and Environmental Protection may adopt regulations, in accordance with chapter 54, to establish uniform emissions performance standards or other requirements to regulate emissions of carbon dioxide to the air from the generation of electricity supplied to end use customers in this state. Such performance standards or other requirements shall, to the greatest extent possible, be designed to improve air quality in this state and to further [the attainment of the National Ambient Air Quality Standards promulgated by the United States Environmental Protection Agency] the goals of the Regional Greenhouse Gas Initiative. Such performance standards [shall] or other requirements may apply to emissions caused by electricity generation in any location in North America used to supply end use customers in this state, [shall] may limit emissions to levels consistent with those permitted from technically similar generators located in this state and [shall] may limit the amount of [air pollutants, including, but not limited to, nitrogen oxides, sulfur oxides and] carbon dioxide emitted per megawatt hour of electricity produced. Such performance standards or other requirements may provide for a program for purchase of offsetting reductions in emissions and trading of emission credits or carbon dioxide allowances.
Sec. 5. Section 16-244u of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):
(a) As used in this section:
(1) "Beneficial account" means an in-state retail end user of an electric distribution company designated by a customer host or an agricultural customer host in such electric distribution company's service area to receive virtual net metering credits from a virtual net metering facility or agricultural virtual net metering facility;
(2) "Customer host" means an in-state retail end user of an electric distribution company that owns, leases or enters into a long-term contract for a virtual net metering facility and participates in virtual net metering;
(3) "Agricultural customer host" means an in-state retail end user of an electric distribution company that uses electricity for the purpose of agriculture, as defined in subsection (q) of section 1-1, owns an agricultural net metering facility and participates in agricultural virtual net metering;
[(3)] (4) (A) "Unassigned virtual net metering credit" means, in any given electric distribution company monthly billing period, a virtual net metering credit that remains after both the customer host and its beneficial accounts have been billed for zero kilowatt hours related [solely] to the generation service charges and eighty per cent of the distribution and other service charges on such billings through virtual net metering;
(B) "Unassigned agricultural virtual net metering credit" means, in any given electric distribution company monthly billing period, an agricultural virtual net metering credit that remains after both the agricultural customer host and its beneficial accounts have been billed for zero kilowatt hours related to the generation service charges and eighty per cent of the distribution and other service charges on such billings through agricultural virtual net metering;
[(4)] (5) "Virtual net metering" means the process of combining the electric meter readings and billings, including any virtual net metering credits, for a municipal, state or agricultural customer host and a beneficial account related to such customer host's account through an electric distribution company billing process related [solely] to the generation service charges and eighty per cent of the distribution and other service charges on such billings;
[(5)] (6) "Virtual net metering credit" means a credit equal to the retail cost per kilowatt hour the customer host may have otherwise been charged for each kilowatt hour produced by a virtual net metering facility that exceeds the total amount of kilowatt hours used during an electric distribution company monthly billing period; and
[(6)] (7) (A) "Virtual net metering facility" means a Class I renewable energy source or a Class III source that: [(A)] (i) Is served by an electric distribution company, owned, leased or subject to a long-term contract by a customer host and serves the electricity needs of the customer host and its beneficial accounts; [(B)] (ii) is within the same electric distribution company service territory as the customer host and its beneficial accounts; and [(C)] (iii) has a nameplate capacity rating of [two] three megawatts or less; and
(B) "Agricultural virtual net metering facility" means a Class I renewable energy source that is operated as part of an agricultural business, as defined in subsection (q) of section 1-1 that: (i) Is served by an electric distribution company on land owned or controlled by an agricultural customer host and serves the electricity needs of the agricultural customer host and its beneficial accounts; (ii) is within the same electric distribution company service territory as the agricultural customer host and its beneficial accounts; and (iii) has a nameplate capacity rating of three megawatts or less.
(b) Each electric distribution company shall provide virtual net metering to its municipal, [customers] state or agricultural customer hosts and shall make any necessary interconnections for a virtual net metering facility. Upon request by a municipal, state or agricultural customer host to implement the provisions of this section, an electric distribution company shall install metering equipment, if necessary. For each municipal customer host, such metering equipment shall (1) measure electricity consumed from the electric distribution company's facilities; (2) deduct the amount of electricity produced but not consumed; and (3) register, for each monthly billing period, the net amount of electricity produced and, if applicable, consumed. If, in a given monthly billing period, a municipal, state or agricultural customer host supplies more electricity to the electric distribution system than the electric distribution company delivers to the municipal, state or agricultural customer host, the electric distribution company shall bill the municipal, state or agricultural customer host for zero kilowatt hours of generation and assign a virtual net metering credit to the municipal, state or agricultural customer host's beneficial accounts for the next monthly billing period. Such credit shall be applied against the generation service component [of] and eighty per cent of the distribution and other service charges billed to the beneficial [account] accounts. Such credit shall be allocated among such accounts in proportion to their consumption for the previous twelve billing periods.
(c) An electric distribution company shall carry forward any unassigned virtual net metering generation credits earned by the municipal, state or agricultural customer host from one monthly billing period to the next until the end of the calendar year. At the end of each calendar year, the electric distribution company shall compensate the municipal, state or agricultural customer host for any unassigned virtual net metering generation credits at the rate the electric distribution company pays for power procured to supply standard service customers pursuant to section 16-244c, and eighty per cent of the distribution and other service charges.
(d) At least sixty days before a municipal, state or agricultural customer host's virtual net metering facility becomes operational, the municipal, state or agricultural customer host shall provide written notice to the electric distribution company of its beneficial accounts. The municipal, state or agricultural customer host may change its list of beneficial accounts not more than once annually by providing another sixty days' written notice. The municipal or state customer host shall not designate more than five beneficial accounts, except that for facility accounts connected to a microgrid, the municipal or state customer host may identify up to five additional nonstate or municipal critical facilities, as defined in subdivision (2) of subsection (a) of section 16-243y. The agricultural customer host shall not designate more than ten beneficial accounts each of which shall use electricity for the purpose of agriculture, as defined in subsection (q) of section 1-1.
(e) On or before February 1, 2012, the [Department of Energy and Environmental Protection] Public Utilities Regulatory Authority shall conduct a proceeding to develop the administrative processes and program specifications, including, but not limited to, a cap of [one] ten million dollars per year apportioned to each electric distribution company based on consumer load for credits provided to beneficial accounts pursuant to subsection (c) of this section and payments made pursuant to subsection (d) of this section.
(f) On or before January 1, 2013, and annually thereafter, each electric distribution company shall report to the [department] authority on the cost of its virtual net metering program pursuant to this section and the [department] authority shall combine such information and report it annually, in accordance with the provisions of section 11-4a, to the joint standing committee of the General Assembly having cognizance of matters relating to energy.
Sec. 6. Section 16-19ff of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):
(a) Notwithstanding any provisions of the general statutes to the contrary, each electric company or electric distribution company shall allow the installation of submeters at (1) a recreational campground, (2) individual slips at marinas for metering the electric use by individual boat owners, (3) commercial, industrial, multi-family residential or multiuse buildings where the electric power or thermal energy is provided by a Class I renewable energy source, as defined in section 16-1, or a combined heat and power system, as defined in section 16-1, or (4) in any other location as approved by the authority [and] where submetering promotes the state's energy goals, as described in the Comprehensive Energy Strategy, while protecting consumers against termination of residential utility or propane service or other related issues. Each entity approved to submeter by the Public Utilities Regulatory Authority, pursuant to subsection (c) of this section, shall provide electricity to [such campground] any allowed facility, as described in this subsection, at a rate no greater than the [residential] rate charged to that customer class for the service territory in which [the campground or marina is] such allowed facility is located, provided nothing in this section shall permit [the installation of submeters for nonresidential use including, but not limited to,] such entity to charge a submetered account for usage for general outdoor lighting marina operations, repair facilities, restaurants, [or] other retail recreational facilities or any common areas of a commercial, industrial or multi-family residential building. [Service to nonresidential facilities shall be separately metered and billed at the appropriate rate.]
(b) The Public Utilities Regulatory Authority shall adopt regulations, in accordance with the provisions of chapter 54, to carry out the purposes of this section. Such regulations shall: (1) Require a submetered customer to pay only his portion of the energy consumed, which cost shall not exceed the amount paid by the owner of the main meter for such energy; (2) establish standards for the safe and proper installation of submeters; (3) require that the ultimate services delivered to a submetered customer are consistent with any service requirements imposed upon the company; (4) establish standards for the locations of submeters and may adopt any other provisions the authority deems necessary to carry out the purposes of this section and section 16-19ee.
(c) The authority shall develop an application and approval process that allows for the reasonable implementation of submetering provisions at allowed facilities, as described in subsection (a) of this section, while protecting consumers against termination of residential utility or propane service or other related issues.
Sec. 7. (NEW) (Effective July 1, 2013) Any electric customer shall be allowed to aggregate all electric meters that are billable to such customer.
Sec. 8. (NEW) (Effective July 1, 2013) The Public Utilities Regulatory Authority shall authorize any municipality, state or federal governmental entity that owns, leases or operates any Class I renewable energy source, as defined in section 16-1 of the general statutes, or Class III source, as defined in section 16-1 of the general statutes, to independently distribute electricity generated from any such Class I renewable energy source or Class III source, or any other generation resource under five megawatts that is connected to a municipal microgrid, across a public highway or street for the sole purpose of serving critical facilities, as defined in subdivision (2) of subsection (a) of section 16-243y of the general statutes.
Sec. 9. Subsection (a) of section 32-80a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):
(a) As used in this section and sections 32-80b and 32-80c:
(1) "Energy improvement district distributed resources" means one or more of the following owned, leased, or financed by an Energy Improvement District Board: (A) Customer-side distributed resources, as defined in section 16-1; (B) grid-side distributed resources, as defined in said section 16-1; (C) combined heat and power systems, as defined in said section 16-1; [and] (D) Class III sources, as defined in said section 16-1; and (E) microgrid, as defined in subdivision (5) of subsection (a) of section 16-243y; and
(2) "Project" means the acquisition, purchase, construction, reconstruction, improvement or extension of one or more energy improvement district distributed resources.
Sec. 10. (NEW) (Effective October 1, 2013) (a) On or before January 1, 2014, the Commissioner of Energy and Environmental Protection, in consultation with the Office of Policy and Management and the Department of Consumer Protection, shall (1) adopt a set of criteria for evaluating and rating the energy consumption of commercial buildings, and (2) develop a method for labeling or disclosing such information before the sale or lease of such buildings. The commissioner may adopt the United States Environmental Protection Agency's Energy Star portfolio manager to fulfill the requirements of this section.
(b) Any owner of commercial real property located in the state that has a gross floor area of ten thousand square feet or more shall have the energy consumption of such property evaluated in accordance with the rating system adopted pursuant to subsection (a) of this section and in accordance with the schedule outlined in section 15 of this act, prior to the sale or lease of all or any subunit within such property, except for a sale or lease between coowners, spouses or persons related by consanguinity within the third degree or a transfer through inheritance. Any such evaluation conducted not more than five years prior to the sale or lease of such property may be used for the purposes of complying with this section. The results of such evaluation shall be disclosed to potential purchasers and lessees.
Sec. 11. (NEW) (Effective October 1, 2013) On or before January 1, 2014, the Commissioner of Energy and Environmental Protection shall, within available appropriations, develop a voluntary pilot program to (1) rate the energy use of residential buildings in the state, and (2) use that information to promote efficiency improvements when a property is being transferred through sale or lease. The commissioner shall report the results of such pilot to the joint standing committees of the General Assembly having cognizance of matters relating to energy and technology and commerce. The commissioner may use the United States Department of Energy's Home Energy Solutions scorecard rating tool, or components thereof, in establishing such residential rating system.
Sec. 12. (NEW) (Effective October 1, 2013) On or after January 1, 2014, any landlord who requires a tenant to pay heating expenses as part of the agreed lease shall, before entering into such lease agreement, provide a potential tenant with a statement of prior usage for heat expenses for the unit for at least the preceding year, and, on or after January 1, 2015, the preceding two years. Upon request of any potential tenant, the landlord shall provide such statement of prior usage. The statement of prior usage shall consist of a report from the supplier of the heating fuel, including, but not limited to, an electric, electric distribution or gas company, if available, and shall otherwise be based on (1) records of the heating fuel supplier, or (2) a good faith estimate by the landlord.
Sec. 13. Section 16-245ii of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):
(a) Commencing January 1, 2012, each electric distribution, electric and gas company shall maintain and make available to the public, free of charge, records of the energy consumption data of all typical nonresidential buildings to which such company provides service. This data shall be maintained in a format (1) compatible for uploading to the United States Environmental Protection Agency's Energy Star portfolio manager or similar system, for at least the most recent thirty-six months, and (2) that preserves the confidentiality of the customer.
(b) On or before October 1, 2013, upon the written authorization or secure electronic authorization of such a nonresidential building owner or operator, an electric, electric distribution or gas company shall upload all of the energy consumption data for the specified building account to the United States Environmental Protection Agency's Energy Star portfolio manager.
Sec. 14. (NEW) (Effective from passage) (a) On or before July 1, 2013, the Department of Energy and Environmental Protection shall benchmark all nonresidential buildings owned or operated by the state or any state agency with a gross floor area of ten thousand square feet or more. On or before October 1, 2013, the Department of Energy and Environmental Protection shall make public the United States Environmental Protection Agency's Energy Star portfolio manager benchmarking information for all such nonresidential buildings.
(b) On or before October 1, 2013, the department shall benchmark all residential buildings owned or operated by the state or any state agency with a gross floor area of ten thousand square feet or more. On or before January 1, 2014, the department shall make public the United States Environmental Protection Agency's Energy Star portfolio manager benchmarking information for all such buildings.
Sec. 15. (NEW) (Effective October 1, 2013) (a) On or before January 1, 2014, any person who owns a nonresidential building in the state shall annually benchmark such building's energy use using the United States Environmental Protection Agency's Energy Star portfolio manager benchmarking tool pursuant to the following schedule:
(1) On or before January 1, 2014, all buildings with a gross floor area of one hundred thousand square feet or more;
(2) On or before July 1, 2014, all buildings with a gross floor area of fifty thousand square feet or more but less than one hundred thousand square feet; and
(3) On or before January 1, 2015, all buildings with a gross floor area of ten thousand square feet or more but less than fifty thousand square feet.
(b) On January first of the year following the benchmarking of a building pursuant to subsection (a) of this section, the owner or operator of the building shall provide such energy use data and ratings for the most recent twelve-month period to the Commissioner of Energy and Environmental Protection. Upon receipt of the second annual benchmarking data for each building, and annually thereafter, the commissioner shall, in consultation with the Commissioner of Consumer Protection, make the data accessible to the public through an Internet database.
Sec. 16. (NEW) (Effective July 1, 2013) On or after October 1, 2013, any application for a building permit for new construction of a building with a gross floor area of more than ten thousand square feet or an improvement to such a building costing at least twenty-five per cent of such building's assessed value shall include an estimate of the finished building's energy performance using the United States Environmental Protection Agency's Energy Star target finder tool and shall subsequently be benchmarked annually using the Energy Star portfolio manager benchmarking tool. Portfolio manager and target finder ratings and data for each building shall, within sixty days of being generated, be made available to the Commissioner of Energy and Environmental Protection. The commissioner, in consultation with the Commissioner of Consumer Protection, shall make the data accessible to the public through an Internet database.
Sec. 17. Section 29-252 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(a) As used in this subsection, "geotechnical" means any geological condition, such as soil and subsurface soil condition, which may affect the structural characteristics of a building or structure. The State Building Inspector and the Codes and Standards Committee shall, jointly, with the approval of the Commissioner of Construction Services, adopt and administer a State Building Code based on a nationally recognized model building code for the purpose of regulating the design, construction and use of buildings or structures to be erected and the alteration of buildings or structures already erected and make such amendments thereto as they, from time to time, deem necessary or desirable. Such amendments shall be limited to administrative matters, geotechnical and weather-related portions of said code, amendments to said code necessitated by a provision of the general statutes and any other matter which, based on substantial evidence, necessitates an amendment to said code. The code shall be revised not later than January 1, 2005, and thereafter as deemed necessary to incorporate any subsequent revisions to the code not later than eighteen months following the date of first publication of such subsequent revisions to the code. The purpose of said Building Code shall also include, but not be limited to, promoting and ensuring that such buildings and structures are designed and constructed in such a manner as to conserve energy and, wherever practicable, facilitate the use of renewable energy resources, including provisions for new transportation technologies in any code adopted after the effective date of this section. Said Building Code includes any code, rule or regulation incorporated therein by reference. [As used in this subsection, "geotechnical" means any geological condition, such as soil and subsurface soil conditions, which may affect the structural characteristics of a building or structure.]
(b) The State Building Inspector shall be appointed by the Governor. He shall be an architect or professional engineer licensed by the state of Connecticut, shall have a thorough knowledge of building code administration and enforcement and shall have had not less than ten years practical experience in his profession.
(c) The State Building Inspector or his designee may issue official interpretations of the State Building Code, including interpretations of the applicability of any provision of the code, upon the request of any person. The State Building Inspector shall compile and index each interpretation and shall publish such interpretations at periodic intervals not exceeding four months.
(d) The State Building Inspector or his designee shall review a decision by a local building official or a board of appeals appointed pursuant to section 29-266 when he has reason to believe that such official or board has misconstrued or misinterpreted any provision of the State Building Code. If, upon review and after consultation with such official or board, he determines that a provision of the code has been misconstrued or misinterpreted, he shall issue an interpretation of said code and may issue any order he deems appropriate. Any such determination or order shall be in writing and be sent to such local building official or board by registered mail, return receipt requested. Any person aggrieved by any determination or order by the State Building Inspector under this subsection may appeal to the Codes and Standards Committee within fourteen days after mailing of the decision or order. Any person aggrieved by any ruling of the Codes and Standards Committee may appeal in accordance with the provisions of subsection (d) of section 29-266.
Sec. 18. Section 16a-21a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(a) (1) The amount of sulfur content of the following fuels sold, offered for sale, distributed or used in this state shall not exceed the following percentages by weight: (A) For number two heating oil, three-tenths of one per cent, and (B) for number two off-road diesel fuel, three-tenths of one per cent.
(2) Notwithstanding subdivision (1) of this subsection, the amount of sulfur content of number two heating oil sold, offered for sale, distributed or used in this state shall not exceed the following percentages by weight: (A) For the period beginning July 1, 2011, and ending June 30, [2014] 2013, fifty parts per million, and (B) on and after July 1, [2014] 2013, fifteen parts per million.
[(3) The provisions of subdivision (2) of this subsection shall not take effect until the states of New York, Massachusetts and Rhode Island each have adopted requirements that are substantially similar to the provisions of said subdivision.
(b) As of the date on which the last of the states of New York, Massachusetts and Rhode Island limits the sulfur content of number two heating oil to one thousand five hundred parts per million, the sulfur content of number two heating oil sold, offered for sale, distributed or used in this state shall not exceed one thousand five hundred parts per million.
(c) As of the date on which the last of the states of New York, Massachusetts and Rhode Island limits the sulfur content of number two heating oil to one thousand two hundred fifty parts per million, the sulfur content of number two heating oil sold, offered for sale, distributed or used in this state shall not exceed one thousand two hundred fifty parts per million.
(d) As of the date on which the last of the states of New York, Massachusetts and Rhode Island limits the sulfur content of number two heating oil to five hundred parts per million, the sulfur content of number two heating oil sold, offered for sale, distributed or used in this state shall not exceed five hundred parts per million.
(e) As of the date on which the last of the states of New York, Massachusetts and Rhode Island limits the sulfur content of number two off-road diesel fuel to five hundred parts per million, the sulfur content of number two off-road diesel fuel offered for sale, distributed or used in this state shall not exceed five hundred parts per million.]
[(f)] (b) The Commissioner of Energy and Environmental Protection may suspend the requirements of [subsections (a) to (e), inclusive,] subsection (a) of this section if the commissioner finds that the physical availability of fuel which complies with such requirements is inadequate to meet the needs of residential, commercial or industrial users in this state and that such inadequate physical availability constitutes an emergency provided the commissioner shall specify in writing the period of time such suspension shall be in effect.
Sec. 19. (NEW) (Effective from passage) Pursuant to the natural gas expansion plan approved by the Commissioner of Energy and Environmental Protection in accordance with the Comprehensive Energy Strategy, beginning on July 1, 2013, the gas companies shall use a twenty-five-year payback period to compare the revenues that will accrue from an additional gas customer to the revenue requirement of connecting such customer to the distribution system to determine the level of new business capital expenditures that will be recoverable through rates. The Public Utilities Regulatory Authority shall develop a methodology that reasonably accounts for revenues that would be collected from additional customers connected for the same extension costs over a three-year period.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
from passage |
16-19tt |
Sec. 2 |
from passage |
16-32f(b) and (c) |
Sec. 3 |
from passage |
16-245m |
Sec. 4 |
from passage |
22a-174j |
Sec. 5 |
July 1, 2013 |
16-244u |
Sec. 6 |
July 1, 2013 |
16-19ff |
Sec. 7 |
July 1, 2013 |
New section |
Sec. 8 |
July 1, 2013 |
New section |
Sec. 9 |
July 1, 2013 |
32-80a(a) |
Sec. 10 |
October 1, 2013 |
New section |
Sec. 11 |
October 1, 2013 |
New section |
Sec. 12 |
October 1, 2013 |
New section |
Sec. 13 |
July 1, 2013 |
16-245ii |
Sec. 14 |
from passage |
New section |
Sec. 15 |
October 1, 2013 |
New section |
Sec. 16 |
July 1, 2013 |
New section |
Sec. 17 |
from passage |
29-252 |
Sec. 18 |
from passage |
16a-21a |
Sec. 19 |
from passage |
New section |
Statement of Purpose:
To implement the Governor's budget recommendations.
[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.]