Bill Text: CT SB00353 | 2014 | General Assembly | Comm Sub
Bill Title: An Act Concerning The Development Of Class I Renewable Energy Source Projects.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-04-23 - Moved to Foot of the Calendar, Senate [SB00353 Detail]
Download: Connecticut-2014-SB00353-Comm_Sub.html
General Assembly |
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February Session, 2014 |
*_____SB00353ET____031914____* |
AN ACT CONCERNING THE DEVELOPMENT OF CLASS I RENEWABLE ENERGY SOURCE PROJECTS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 16-244v of the 2014 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(a) Notwithstanding subsection (a) of section 16-244e, an electric distribution company, or owner or private third-party developer of generation projects that emit no pollutants, may submit a proposal to the Department of Energy and Environmental Protection to build, own or operate one or more generation facilities up to an aggregate of [thirty] one hundred megawatts using Class I renewable energy sources, as defined in section 16-1, from July 1, [2011] 2014, to July 1, [2013] 2016. Each generation facility shall be equal to or greater than one megawatt but not more than [five] twenty megawatts. Each electric distribution company may enter into joint ownership agreements, partnerships or other agreements with [private developers to carry out the provisions of this section] the owners or private third-party developers to procure the power, renewable energy credits and capacity produced by the generation facilities at a bundled price and pursuant to twenty-year contracts. The aggregate ownership for [an] all electric distribution [company] companies approved pursuant to this section on and after the effective date of this section shall not exceed [ten] fifty megawatts. The department shall evaluate such proposals pursuant to sections 16-19 and 16-19e and may approve one or more of such proposals if it finds that the proposal serves the long-term interest of ratepayers by providing air quality benefits, economic development, fuel diversity, energy independence, improved power reliability or increased price stability. Preference shall be given to any proposal where the proposed generation facility will be located on an existing brownfield. The department (1) shall not approve any proposal supported in any form of cross subsidization by entities affiliated with the electric distribution company, and (2) shall give preference to proposals that make efficient use of existing sites and supply infrastructure. No such company may, under any circumstances, recover more than the full costs identified in a proposal, as approved by the department. Nothing in this section shall preclude the resale or other disposition of energy or associated renewable energy credits purchased by the electric distribution company, provided the distribution company shall net the cost of payments made to projects under the long-term contracts against the proceeds of the sale of energy or renewable energy credits and the difference shall be credited or charged to distribution customers through a reconciling component of electric rates as determined by the authority that is nonbypassable when switching electric suppliers.
(b) (1) The Department of Energy and Environmental Protection shall conduct two solicitations of owners or private third-party developers for generation projects that emit no pollutants. The first solicitation shall be conducted in 2014 and the second solicitation shall be conducted in 2015, provided such solicitations shall not exceed an aggregate of fifty megawatts.
(2) The electric distribution companies may conduct ongoing solicitations for Class I renewable energy source projects for submission to the Department of Energy and Environmental Protection pursuant to the project size limitations described in subsection (a) of this section until all electric distribution companies reach an aggregate limit of fifty megawatts.
[(b) The] (c) An electric distribution company shall use the power, capacity and related products produced by [such] a facility constructed pursuant to this section to meet the needs of customers served pursuant to section 16-244c.
[(c)] (d) Notwithstanding the provisions of subdivision (1) of subsection (h) of section 16-244c, the amount of renewable energy produced from [such facilities] a facility constructed pursuant to this section shall be applied to reduce the electric distribution company's Class I renewable energy source portfolio standard obligations.
[(d)] (e) The department shall evaluate the proposals approved pursuant to this section and report 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 whether proposals shall be accepted beyond July 1, [2013] 2016.
Sec. 2. (NEW) (Effective October 1, 2014) (a) As used in this section:
(1) "Shared clean energy facility" means a Class I renewable energy source, as defined in section 16-1 of the general statutes, that (A) is served by an electric distribution company, as defined in section 16-1 of the general statutes, (B) is within the same electric distribution company service territory as the individual billing meters for subscriptions, (C) has a nameplate capacity rating of three megawatts or less, and (D) has at least two subscribers;
(2) "Individual billing meter" means an individual electric meter or a set of electric meters, when such meters are combined for billing purposes, within the service territory of the subscriber's electric distribution company;
(3) "Electric distribution company" has the same meaning as provided in section 16-1 of the general statutes;
(4) "Subscriber" means an in-state retail end user of an electric distribution company who (A) has contracted for a subscription, and (B) has identified an individual billing meter to which the subscription shall be attributed;
(5) "Subscriber organization" means any for-profit or not-for-profit entity permitted by Connecticut law that (A) owns or operates one or more shared clean energy facilities for the benefit of the subscribers, or (B) contracts with a third-party entity to build, own or operate one or more shared clean energy facilities; and
(6) "Subscription" means a beneficial use of a shared clean energy facility, including, but not limited to, a percentage interest in the total amount of electricity produced by such a facility or a set amount of electricity produced by such a facility.
(b) The Department of Energy and Environmental Protection, in consultation with the electric distribution companies, shall establish a three-year pilot program to support the development of shared clean energy facilities. On or before January 1, 2015, the department shall develop and issue a request for proposals from subscriber organizations seeking to develop a shared clean energy facility.
(c) The department shall select, pursuant to the request for proposals process, two recipients for the shared clean energy facility pilot program. To the extent possible, one recipient shall construct a shared clean energy facility in a municipality with a population of one hundred thousand or more and the other recipient shall construct a shared clean energy facility in a municipality with a population of less than one hundred thousand. The department shall establish (1) a billing credit for any subscriber of a shared clean energy facility, and (2) consumer protections for subscribers and potential subscribers of such a facility, including, but not limited to, disclosures to be made when selling or reselling a subscription.
(d) Not later than one year after being selected for an award under the shared clean energy facility pilot program and annually for two years thereafter, each recipient shall submit a report, in accordance with section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to energy and to the Department of Energy and Environmental Protection. Such report shall include, but not be limited to, information concerning the status of the shared clean energy facility.
(e) On or before January 1, 2018, the department shall file a report, in accordance with the provisions of section 11-4a of the general statutes, with the joint standing committee of the General Assembly having cognizance of matters relating to energy, (1) analyzing the success of the shared clean energy pilot program, (2) identifying and analyzing the success of programs in other states that allow facilities similar to a shared clean energy facility, and (3) recommending whether a permanent program should be established in this state and, if so, any necessary legislation.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
from passage |
16-244v |
Sec. 2 |
October 1, 2014 |
New section |
Statement of Legislative Commissioners:
In section 1(a), "pursuant to this section" was changed to "approved pursuant to this section on and after the effective date of this section" for clarity.
ET |
Joint Favorable Subst. |