Bill Text: DE HB247 | 2011-2012 | 146th General Assembly | Draft
Bill Title: An Act To Amend Title 26 Of The Delaware Code Relating To Renewable Energy Portfolio Standards.
Spectrum: Strong Partisan Bill (Republican 13-1)
Status: (Introduced - Dead) 2012-01-19 - Introduced and Assigned to Energy Committee in House [HB247 Detail]
Download: Delaware-2011-HB247-Draft.html
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SPONSOR: |
Rep. Lavelle & Rep. Peterman & Rep. Miro & Sen. Venables; |
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Reps. Hocker, Briggs King, Hudson, Lee, Outten, D. Short, Willis, Wilson; Sen. Booth, Simpson |
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HOUSE OF REPRESENTATIVES 146th GENERAL ASSEMBLY |
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HOUSE BILL NO. 247 |
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AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO RENEWABLE ENERGY PORTFOLIO STANDARDS. |
Section 1.Amend §354, Chapter 1, Title 26, Delaware Code by making insertions as shown by underlining and deletions as shown by strike through as follows:
§
354. Renewable energy portfolio standards, eligible energy resources and
industrial exemption.
(a) The
total retail sales of each Retail Electricity Product delivered to Delaware
end-use customers by a retail electricity supplier or municipal electric
company during any given compliance year shall include a minimum percentage of
electrical energy sales with eligible energy resources and solar photovoltaics
as follows:
SCHEDULE I
Compliance Year Minimum
Cumulative Percentage Minimum
Cumulative Percentage
(beginning
June 1st) from
Eligible Energy Resources from
Solar Photovoltaics*
2010 5.00% 0.018%
2011 7.00% 0.20%
2012 8.50% 0.40%
2013 10.00% 0.60%
2014 11.50% 0.80%
2015 13.00% 1.00%
2016 14.50% 1.25%
2017 16.00% 1.50%
2018 17.50% 1.75%
2019 19.00% 2.00%
2020 20.00% 2.25%
2021 21.00% 2.50%
2022 22.00% 2.75%
2023 23.00% 3.00%
2024 24.00% 3.25%
2025 25.00% 3.50%
* Minimum Percentage from
Eligible Energy Resources Includes the Minimum Percentage from Solar
Photovoltaics.
Any portion
of a retail electricity supplier's renewable energy supply portfolio for 2007,
2008 and 2009 compliance years that is acquired under wholesale renewable
energy supply entered into pursuant to the 2005 or 2006 Delaware Standard Offer
Service (SOS) auctions shall be subject to the provisions of this subchapter,
as set forth in Schedule I (Revised) below that were in effect on the date of
the 2005 or 2006 SOS auction:
Compliance Year Minimum
Cumulative Percentage Minimum
Cumulative Percentage
(beginning
June 1st) from
Eligible Energy Resources from
Solar Photovoltaics*
*Minimum
Percentage from Eligible Energy Resources Includes the Minimum Percentage from
Solar Photovoltaics.
(b)
Cumulative minimum percentage requirements of eligible energy resources and
solar photovoltaics shall be established by Commission rules for compliance
year 2026 and each subsequent year. In no case shall the minimum percentages
established by Commission rules be lower than those required for compliance
year 2025 in Schedule I, subsection (a) of this section. Each of the rules
setting such minimum percentage shall be adopted at least 2 years prior to the
minimum percentage being required.
(c)
Beginning in compliance year 2010, and in each compliance year thereafter, the
Commission may review the status of Schedule I and report to the legislature on
the status of the pace of the scheduled percentage increases toward the goal of
25% from eligible energy resources. If the Commission concludes at this time
that the schedule either needs to be accelerated or decelerated, it may also
make recommendations to the General Assembly for legislative changes to the
RPS.
(d)
Beginning in compliance year 2014, and in each compliance year thereafter, the
Commission may, in the event of circumstances specified in this subsection and
after conducting hearings, accelerate or slow the scheduled percentage
increases towards meeting the goal of 25%. The Commission may only slow the
increases if the Commission finds that at least 30% of RPS compliance has been
met through the alternative compliance payment for 3 consecutive years, despite
adequate planning by the commission-regulated electric companies and, where
applicable, the retail electricity suppliers with existing contractual electric
supply obligations. The Commission may only accelerate the scheduled percentage
increases after finding that the average price for renewable energy credits
eligible for RPS compliance has, for 2 consecutive years, been below a
predetermined market-based price threshold to be established by the Commission.
The Commission shall establish the predetermined market-based price threshold
in consultation with the Delaware Energy Office. Rules that would alter the
percentage targets shall be promulgated at least 2 years before the percentage
change takes effect. In no event shall the Commission reduce the percentage
target below any level reached to that point.
(e)
Beginning with compliance year 2012, commission-regulated electric companies
shall be responsible for procuring RECs, SRECs and any other attributes needed
to comply with subsection (a) of this section with respect to all energy
delivered to such companies' end use customers.
(f) For
each commission-regulated electric company, retail electricity supplier with
existing contractual electric supply obligation or municipal electric company,
no more than 1% of each year's total retail sales may be met from eligible
energy resources that are not new renewable generation resources. In compliance
year 2026, and for each compliance year thereafter, all eligible energy
resources used to meet cumulative minimum percentage requirements set by the
Commission rules shall be new renewable generation resources.
(g) A
retail electricity supplier or municipal electric company shall not use energy
used to satisfy another state's renewable energy portfolio requirements for
compliance with Schedule I of subsection (a) of this section.
(h) An
applicant's compliance with Schedule I of subsection (a) of this section shall
be based on historical data, collected in a manner consistent with industry
standard and, with respect to retail electricity suppliers, Commission
regulations. A retail electricity supplier or municipal electric company shall
meet the renewable energy portfolio standards by accumulating the equivalent
amount of renewable energy credits and solar renewable energy credits that
equal the percentage required under this section.
(i) The
State Energy Coordinator in consultation with the Commission, may freeze the
minimum cumulative solar photovoltaics requirement for regulated utilities if
the Delaware Energy Office determines that the total cost of complying with
this requirement during a compliance year exceeds 1% of the total retail cost
of electricity for retail electricity suppliers during the same compliance
year. In the event of a freeze, the minimum cumulative percentage from solar
photovoltaics shall remain at the percentage for the year in which the freeze
is instituted. The freeze shall be lifted upon a finding by the Coordinator, in
consultation with the Commission, that the total cost of compliance can
reasonably be expected to be under the 1% threshold. The total cost of
compliance shall include the costs associated with any ratepayer funded state
solar rebate program, SREC purchases, and solar alternative compliance
payments.
(j) The
State Energy Coordinator in consultation with the Commission, may freeze the
minimum cumulative eligible energy resources requirement for regulated
utilities if the Delaware Energy Office determines that the total cost of
complying with this requirement during a compliance year exceeds 3% of the
total retail cost of electricity for retail electricity suppliers during the
same compliance year. In the event of a freeze, the minimum cumulative
percentage from eligible energy resources shall remain at the percentage for
the year in which the freeze is instituted. The freeze shall be lifted upon a
finding by the Coordinator, in consultation with the Commission, that the total
cost of compliance can reasonably be expected to be under the 3% threshold. The
total cost of compliance shall include the costs associated with any ratepayer
funded state renewable energy rebate program, REC purchases, and alternative
compliance payments.
§ 354.Renewable Energy Portfolio Standards.
(a) The Total retail sales of each Retail Electricity Product sold to Delaware end-use customers by a retail electricity supplier or municipal electric company shall be not less than the percentage of renewable energy the provider achieved as of January 1, 2012.
(b) Each retail electricity provider shall notify its customers how the customer can increase their purchase of renewable electricity if the customer wants to do so.This notice shall be given to each customer within 180 days of the effective date of this act and at least annually thereafter.
SYNOPSIS
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This bill freezes the minimum percentage of renewable energy (Renewable Portfolio Standard - RPS) a retail-electricity supplier or municipal electric company must provide to customers at the proportion achieved as of January 1, 2012. The intent of the freeze is to give policy-makers a chance to reassess the state's energy strategy in light of the many changes that have occurred over the last several years including the failure of the Bluewater Wind off-shore wind farm project; the decrease in natural gas prices; and actions that have made Delaware power plants significantly cleaner. The freeze will also allow for an examination of the high cost of electricity in The First State. According to the U.S. Energy Information Agency (EIA), Delaware has the 13th highest residential and commercial electricity rates in the nation and the seventh highest residential average monthly bill. The RPS mandate is scheduled to increase annually, from 7 percent in compliance year 2011-2012 to 25 percent in 2025, which will export jobs out of Delaware and potentially increase electricity rates as the standard rises. Additionally, while the RPS is frozen and the state's energy strategy is being reassessed, the bill encourages the use of renewable energy by requiring utilities to notify their customers as to how they can increase their purchase of renewable electricity on a voluntary basis. |
