You asked for a section-by-section summary of An Act Concerning Connecticut's Energy Future (HB 7098). This summary groups the bill's provisions into the following topic areas: energy efficiency, electric reliability, renewable energy and distributed generation, standard service and last resort electric service, integrated resources planning and resources procurement, energy assistance, and miscellaneous provisions. For the most part, the summaries of individual provisions within these categories follow their order in the bill.

ENERGY EFFICIENCY

§ 1, 2: Energy efficient replacement furnace program

The bill requires, between October 1, 2007 and July 1, 2017, the Office of Policy and Management (OPM) secretary to provide a $ 500 rebate for the purchase and installation of replacement heating equipment that is at least 84% efficient. The rebate is available for equipment installed in residential structures containing up to four dwelling units.

The bill allows the proceeds of bonds issued pursuant to PA 05-2 of the October 25 special session to be used for this program.

§ 3: Air conditioning replacement program

The bill requires the Energy Conservation Management Board, in consultation with the electric companies, to establish a rebate program for residential customers who replace air conditioning units that do not meet the federal Energy Star efficiency standards with ones that do. The rebate ranges from at least $ 25 to at least $ 100 for room air conditioners, depending on the cost of the new air conditioner. The bill provides a rebate of at least $ 500 to residential customers who replace a central air conditioning unit that does not meet the Energy Star standards with one that does. The program must be funded from the existing electric company conservation funds.

The Department of Consumer Protection must only allow retailers to participate in the program if they certify that the grants only go to customers who replace their air conditioners and may fine retailers up to $ 10,000 if they inappropriately provide grants.

§ 11, 12, 91: Green building standards for state-funded projects and new non-residential buildings

The bill broadens the state's “green building” requirements. Under current law, state facilities costing $ 5 million or more funded on or after January 1, 2007 (with limited exceptions) must meet specified energy and environmental standards (LEED Silver or its equivalent). The OPM secretary, in consultation with the Public Works commissioner and the Institute for Sustainable Energy, must waive the requirements if he finds that the cost of compliance significantly outweighs the benefits.

The bill delays the start date to January 1, 2008 and extends the requirement to (1) state-funded school construction and housing projects costing $ 5 million or more and (2) state-funded renovations of state facilities and state-funded school and housing projects costing $ 2 million or more. It requires the institute, rather than the OPM secretary, to determine whether the cost of compliance significantly outweighs the benefits.

The bill requires that, in the case of a school construction grant project, the state cover 100% of the additional costs attributable to meeting these standards under the school construction grant program, as documented by the school administrators and approved by the education commissioner, in consultation with the OPM secretary.

In addition, the bill requires the State Building Inspector and the Codes and Standards Committee to amend the state building code to require large private sector construction projects built on or after January 1, 2010 to meet the energy and environmental standards described above. The requirements apply to new buildings costing $ 5 million or more and renovations costing $ 2 million or more, other than residential buildings with up to four units. The bill requires the inspector and the committee to waive these requirements if they find that the cost of compliance significantly outweighs the benefits.

§ 13-18: Equipment energy efficiency standards

The bill establishes energy efficiency standards for various commercial products. These include, among others, medium voltage transformers, bottled water dispensers, commercial hot food holding cabinets, portable electric spas, walk-in refrigerators and freezers, and pool heaters. In most cases, the standards go into effect January 1, 2009.

It establishes efficiency standards for residential furnaces purchased by the state on or after January 1, 2009. It requires the Department of Administrative Services and other purchasing agencies buy appliances and equipment that meet federal Energy Star standards.

§ 21, 22: Tax exemptions for efficient vehicles

The bill establishes a local option property tax exemption for hybrid vehicles and vehicles with fuel efficiencies of at least 40 miles per gallon.

The bill creates a sales tax exemption until July 1, 2010 for vehicles with fuel efficiencies of at least 40 miles per gallon.

§ 60: Natural gas conservation programs

By law, natural gas companies must develop annual conservation plans, but current law does not provide a funding mechanism. The bill requires that the plans be funded by the growth in the utilities gross receipts tax in each fiscal year over the amount contained in the revenue estimate in the adopted budget for that year, subject to a $ 10 million per year cap. The money goes into an account held by the Energy Conservation Management Board, which is used to reimburse gas companies for their conservation expenditures. The gas conservation programs are subject to the same evaluation and approval processes as the current electric conservation, i. e. , programs must be cost effective and reviewed by the Energy Conservation Management Board. The bill also removes a prohibition on DPUC establishing a gas conservation charge to support the programs in the plan.

§ 73: Fuel oil conservation programs

The bill establishes a 15-member Fuel Oil Conservation Board, consisting of two members of the public appointed by the governor, the chairperson of the board that licenses heating and related contactors, one member representing an environmental advocacy group appointed by the Senate minority leader, and 11 members, including fuel oil dealers and related industry representatives, appointed by other legislative leaders.

The bill requires the board to establish itself as a non-profit organization and to issue an RFP to choose an entity to administer oil conservation programs. By November 1, 2007, it must contract with this entity for up to three years and can renew the contract.

By March 1, 2008, the program administrator must submit a comprehensive oil conservation plan for the board's approval. The bill imposes cost-effectiveness and other requirements on programs in the plan that parallel those in existing law regarding electric and natural gas conservation plans.

Under the bill, funding for the oil conservation programs comes from the increase in revenues from the petroleum products gross receipts tax sales above the 2006 revenues, subject to a $ 10 million annual cap.

§§ 81-83: Sales tax exemptions for energy efficiency goods

The bill (1) makes permanent the sales tax exemption for energy efficiency goods such as insulation, programmable thermostats, and furnaces that meet Energy Star standards and (2) makes oil furnaces and boilers that are 84% or more efficient, rather than 85% or more, eligible for this exemption. The bill also permanently exempts from the sales tax (1) compact fluorescent light bulbs and (2) solar electric and space and water heating systems, related equipment and installation services. Finally, it exempts from the tax, until June 30, 2008, household appliances that meet federal Energy Star standards.

§ 85: Tax credits under Van Norstrand Neighborhood Assistance Act

Current law provides a credit against business taxes of up to 60% of a firm's investments in energy conservation projects in low income housing developments or properties occupied by charitable organizations. The bill (1) increases the maximum credit to 100% and (2) establishes a 100% credit for energy conservation investments in other properties owned by these organizations.

§ 86: Bonding for energy efficiency projects in state buildings

The bill authorizes $ 30 million in bonds for the Department of Public Works to fund the net project costs of energy projects in state buildings.

§ 87: CHEFA grants for energy efficiency projects in colleges, hospitals, etc.

The bill allows the Connecticut Health and Educational Facilities Authority to provide grants or other financial assistance to colleges, health care facilities, nursing homes, day care centers, and other non-profit organizations for energy efficiency and renewable energy construction and renovation projects.

§ 88, 94: Low interest energy efficiency loans

The bill reinstates, until June 30, 2008, provisions of PA 05-2, October 25 Special Session that lowered the interest rate for the Connecticut Housing Investment Fund's (CHIF) energy efficiency loan program. But it excludes siding and replacement roofs projects from the interest rate reduction.

The bill also requires CHIF to provide loans of up to $ 25,000 to owners of one-four unit residential properties under this program. Under current practice, the program has a $ 15,000 cap on such loans.

§§ 92, 93: Restoring utility conservation funds and the Clean Energy Fund.

In recent years, the legislature has diverted part of the revenues that would have otherwise gone into the electric companies' conservation funds and the state's Clean Energy Fund and transferred it into the General Fund. To reduce the impact of the transfer on the conservation and clean energy funds, it authorized the issuance of bonds backed by future revenue from the conservation and renewable energy charges on electric bills.

The bill instead makes these bonds outstanding state indebtedness. It appropriates $ 95 million from the FY 07 budget to defease or buy back the bonds that mature after December 30, 2007, or a combination of these measures. Seventy-five percent of the revenues freed up as a result of this measure (net of the state's administrative costs) would go back into the conservation funds and 25% would go back into the Clean Energy Fund.

ELECTRIC RELIABILITY

§ 5: Dual fuel capacity at power plants

The bill requires that, starting January 1, 2008, DPUC order that each intermediate or baseload electric generating facility with a rating of 65 megawatts or more have the capacity to burn either oil or gas if it is (1) currently fueled by one of these fuels and (2) owned by or under contract to an electric company.

§ 6: Electric company linemen staffing levels

The bill requires DPUC, by September 1, 2007, to conduct a contested case proceeding to study (1) the appropriate number of linemen needed for an electric company to maintain, repair, and extend its distribution lines under normal circumstances and under extraordinary circumstances, including storms; (2) whether the consolidation of repair facilities results in longer restoration times, (3) whether greater use of shield wire would reduce outages; and (4) the most effective ways of notifying the public of an outage and the status of the company's efforts to restore power. DPUC must report the proceeding results to the Energy and Technology Committee by January 1, 2008.

§ 7: Wire maintenance plans

The bill requires each electric company to submit a plan to DPUC, by January 1, 2008, for maintaining transmission and distribution systems along highways, in a format DPUC prescribes. The plan must include a summary of appropriate staffing levels.

§ 8: Staffing levels and rates

By law, utility rates must be just sufficient to allow the utility to cover their operating and capital costs and attract needed capital. The bill specifies that operating costs include appropriate staffing levels. It also includes energy security as one of the responsibilities of utilities.

§ 9: Energy Security

The bill requires DPUC and the Siting Council, in conjunction with the Department of Emergency Managements and Homeland Security, to investigate energy security with regard to siting of power plants and transmission facilities. The investigation must address planning, preparedness, and response and recovery capabilities.

§ 11: DPUC/Siting Council study on electric reliability

The bill requires DPUC and the Siting Council to conduct a joint contested case proceeding to assess ways the state can ensure and enhance the reliability of generating facilities in the state during peak electric demand periods. The proceeding must address: (1) the current compliance of generation facilities with existing on-site dual fuel storage and operational requirements, (2) the existing inventory of fuel storage and fuel delivery resources available to supply generating facilities in the state, (3) the amount of fuel delivery and storage infrastructure that would be needed to ensure the reliable operation of these facilities during peak demand periods, and (4) the types of incentives that can be offered to the electric and gas industry to enhance the reliability of electric service during peak periods. The agencies must begin the case by September 1, 2007 and consult with the electric and gas industries, the Office of Consumer Counsel, the attorney general, and the entity that operates the New England power grid. They must submit their findings and recommendations to the Energy and Technology Committee by January 1, 2008.

RENEWABLE ENERGY AND DISTRIBUTED RESOURCES

§ 4: Charges for fuel cell owners

The bill requires an electric company or competitive supplier to waive its demand charge for a fuel cell operator during (1) a loss of power caused by problems with generation facilities or the transmission and distribution infrastructure or (2) a scheduled or unscheduled shutdown of the fuel cell that occurs during off-peak hours. The amount waived is limited to the charge incurred during the shutdown or as a result of the problem.

§ 19-20: Funding for distributed resources

PA 05-1, June Special Session, established incentives for new distributed generation (e. g. , small power plants using technologies such as microturbines and fuel cells). One of the incentives for such generation located on a customer's premises is a one-time capital award of between $ 200 and $ 500 per kilowatt of capacity. Currently, the awards are funded by a charge on the bills of electric company customers.

The bill extends the incentives to such generation installed before January 1, 2007 if the generation (1) underwent upgrades that increased its thermal efficiency operating level by at least 10 percentage points, (2) operates at a thermal efficiency level of at least 50%, and (3) added electric capacity in the state on or after January 1, 2007.

The bill requires municipal electric utilities to contribute a pro rata share of the awards in order for their customers to be eligible for them. DPUC must conduct a contested case to determine the utility's share, which must be proportional to the municipal utilities' share of the total amount of electricity sold in the state. Funding for the remaining portion of the award continues to come from electric company customers, paid in semiannual payments over a period of up to five years.

The bill requires the municipal utility customer to apply to the DPUC for the award. The application must contain a certification by an independent licensed engineer that the project is financially viable and that it is intended to reduce the customer's peak demand. These provisions already apply to utility company customers.

§ 23-38: Energy improvement districts

The bill allows municipalities to establish “energy improvement districts” and prescribes how they can be formed. It specifies the powers of such districts, which include developing and operating small power plants and certain conservation programs. The district's board can issue revenue bonds, which are subject to standard provisions regarding the bond issuance, guarantees of revenues to back the bonds, trust indentures, and other bondholder rights. Districts are tax-exempt, but can make payments in lieu of property taxes. The bill gives municipalities a wide range of powers to aid districts, including guaranteeing the district's bonds, issuing general obligation bonds to support the district, and appropriating funds for the district's use.

§ 39, 40: Power plant interconnection standards

By law, electric utilities (including municipal electric utilities) must interconnect with non-utility generators. The bill requires DPUC to adopt regulations on interconnection by January 1, 2008 that meet or exceed national standards. (Interconnection standards deal with such things as the transformers that connect generating facilities with transmission lines). If DPUC has not adopted these regulations by October 1, 2008, each of the utilities and the municipal electric energy cooperative must meet New Jersey's interconnection standards.

§ 41: Clean Energy Fund investments

The bill allows the Clean Energy Fund to invest in (1) alternative fuel, including ethanol, biodiesel, or other fuel, that is produced in Connecticut and derived from agricultural produce, food waste, or waste vegetable oil and (2) hydropower that will meet the low-impact standards of the Low-Impact Hydropower Institute. It also specifically allows the fund to invest in solar thermal and solar photovoltaic energy.

§ 42: Net metering

By law, electric utilities and competitive suppliers must give a credit to their customers in one- to four-dwelling unit properties who generate electricity using class I renewable resources or hydropower. The bill expands these provisions to cover commercial customers with generation capacity up to two megawatts, provides for payments to customers who generate more power than they use in a given billing period, and makes related changes.

§ 43: Renewable portfolio standard

Under current law, electric utilities and suppliers must obtain 3. 5% of their power from class I and class II renewable resources in 2007, 5% in 2008, 6% in 2009, and 7% in 2010 and subsequent years under the state's renewable portfolio standard (RPS). The bill increases the 2009 level to 7%, the 2010 level to 9%, and increases the RPS to 11% starting in 2011, of which 8% must come from class I resources such as wind, solar, and fuel cells. It also allows utilities and suppliers to meet the standard by buying power from residential net metering customers.

§ 44: Municipal electric utilities and renewable energy

The bill requires the Connecticut Municipal Electric Energy Cooperative (CMEEC) to develop standards for promoting renewable resources that apply to each municipal electric utility in the state. By January 1 annually, CMEEC must submit the standards to the group that advises Connecticut Innovations, Inc. , which administers the Clean Energy Fund. The bill also requires CMEEC to submit an annual report to this group on the activities of municipal utilities to promote renewable resources.

§ 45, 46, 47: Class III renewable resources

By law, electric companies and suppliers must get part of their supply from class III resources as part of the RPS. The bill makes several changes regarding these resources. Under current law, they are (1) electricity produced by systems that produce heat and power that are developed at commercial and industrial facilities and (2) electricity savings from conservation and load management programs at these facilities that began on or after January 1, 2006. Among other things, the bill expands class III resources to include (1) systems that recover waste heat or pressure from commercial and industrial processes that are installed on or after April 1, 2007 and (2) electricity savings from residential conservation programs that started on or after January 1, 2006. It excludes projects that violate Department of Environmental Protection (DEP) water quality standards from the class III RPS. It also makes related changes.

It entitles the customer who produces class III resources to a credit equal to at least 50% of the value of a class I credit or 1 cent per kilowatt-hour, which is greater. To be eligible for the credits, the customer must annually submit a form to DPUC, certified by a licensed professional engineer, stating the number of kilowatt-hours he generated or saved.

§ 48: DEP hydropower agreements

The bill allows the DEP commissioner to enter lease agreements with private entities, in consultation with affected towns and watershed organizations, to allow them to generate hydroelectricity.

§ 49: Long-term contracts with renewable resources generators

The bill requires the electric companies to enter into long-term contracts for 150, rather than 100, megawatts of class I renewable resources. By law, the resources must have received funding from the Clean Energy Fund and individual projects must be at least one megawatt in size.

§ 50, 51: Property tax exemptions

The bill expands the scope of the local option property tax exemption for renewable energy systems. Under current law, municipalities can exempt class I renewable resources (e. g. , solar electric, wind, and fuel cell systems) in one to four-unit residential buildings. The bill allows them to exempt any (1) passive or active solar water or space heating system or (2) geothermal energy resource, in both cases from any type of building.

§ 62, 63: CEAB review process

By law, the Connecticut Energy Advisory Board (CEAB) must conduct an alternatives analysis when an application is made to the Siting Council to build certain energy facilities. The bill exempts generating facilities with a capacity of up to 5 megawatts and electric substations from this requirement. The bill also allows CEAB, by a two-thirds vote of the members present and voting, to waive this requirement for a specific application because the process is not likely to result in a reasonable alternative to the proposed facility. By December 1, 2007, the board must develop (after soliciting public comment) and approve additional criteria to apply when determining whether the process can be waived.

§ 75: Siting Council review

By law, a Siting Council certificate is not required for (1) any fuel cell with a capacity of up to 10 kilowatts, or (2) a larger fuel cell, unless the Siting Council finds that it causes substantial environmental harm. The bill extends the 10 kilowatt limit to 250 kilowatts for fuel cells manufactured in the state.

Under current law, a certificate is not needed for distributed generation resources below 65 megawatts, unless the bill violates DEP air quality standards. The bill additionally requires the facility to meet DEP water quality standards in order to eligible for this exemption.

§ 81: Solar energy equipment sales tax exemption

The bill exempts from the sales tax sales of active and passive solar energy systems and related installation services.

§ 95: Bonding for renewable energy projects in state buildings

The bill authorizes $ 30 million in bonds for the Connecticut Innovations, Inc, which administers the Clean Energy Fund, to fund the net project costs of renewable energy projects in state buildings. To be eligible, the building must be certified in the LEED program or in the process of being certified.

STANDARD SERVICE AND LAST RESORT ELECTRIC SERVICE

§ 53: Procurement and pricing, “green” option

By law, electric companies must provide (1) standard service to small and medium size customers who do not choose a competitive supplier and (2) supplier of last resort service to large customers who do not choose a supplier. The bill transfers customers who have demand meters but whose maximum demand is less than 500 kilowatts from standard service to last resort service.

The bill requires DPUC, in analyzing the bids by wholesalers to provide power for both services, to determine whether they are consistent with the DPUC-approved plan for obtaining generation and other resources each electric company must develop under the bill. The bill requires that all of the bids received during the procurement process be made available for public review the six months after DPUC's approval or rejection.

By law, each company submitting a bid to provide electricity for standard service must submit it to the electric company and a third party contractor selected by DPUC. The company and the contractor must review the bids and submit an overview of them, together with their joint recommendation, to DPUC. The bill additionally requires that they conduct a cost-based analysis of the bids. It requires DPUC to make all of the bids it receives available to the Office of Consumer Counsel and the attorney general. They may not make the bids available to the public until DPUC does so. By law, DPUC can reject the joint recommendation. The bill specifies that DPUC can do this if the bids are not in the customers' best interest. The bill requires that once DPUC approves the bids, the electric company must enter into contracts with the approved bidders.

Under current law, DPUC must adjust the price of standard service periodically, but not more than once per quarter. The bill requires that DPUC set the price on an annual basis, but allows DPUC to adjust it as frequently as once per quarter if it determines that this would be in customers' interests. DPUC must establish rates that ensure that customers who leave standard service continue to pay the appropriate amount of the costs of electricity commitments for their service. By October 1, 2009, and biennially thereafter, DPUC must conduct contested cases to review the efficacy of the process of procuring contracts for this service, including an assessment of the extent to which the integrated resource planning and procurement standards discussed below are met.

Under current law, DPUC can direct the electric companies to offer a “green” option, through licensed suppliers, in which a standard service customer can buy power that exceeds the RPS. The bill requires DPUC to direct the companies to offer this option, and requires that they offer customers an option for buying renewable energy directly (under the current program, customers buy renewable energy credits, rather than the actual “green” power. ).

The bill requires the electric companies to procure power for last resort service annually and to publish the price for power for each of the following 12 months when they do. It requires the companies to set rates for last resort service for municipal customers on an annual basis and inform the chief executive officers and legislative body of each municipality of the rates for the next fiscal year by March 1 annually. It allows DPUC, starting July 1, 2008, to study how often these rates should change. It allows prices to change more frequently based on this study.

As an alternative to the current procurement processes for standard service and last resort service, the bill allows an electric company to enter into a tentative proposed supply contract. DPUC must review the proposed contract in a contested case, and if approved, the company can enter into the contract.

INTEGRATED RESOURCES PLANNING AND RESOURCE PROCUREMENT

§ 54: Utility owned peaking generation

The law required DPUC to issue a request for proposals (RFP) for measures to reduce the costs arising from congestion on the transmission system. Electric companies were allowed to submit proposals, subject to certain conditions that did not apply to non-utility generators, but chose not to do so. DPUC is currently reviewing the proposals it received, which include proposals for new peaking plants (which operate during period of peak demand), baseload plants (those that operate most of the time), and other types of resources. Non-utility generators whose proposals are accepted by DPUC can enter into long-term electric capacity contracts with the electric companies.

Under the bill, if DPUC determines that the state needs peaking generation, it must direct the electric companies to submit proposals to build an amount of peaking generation equal to the amount DPUC approved in the proposals from the non-utility generators. The electric companies can submit bids in proportion to their loads. Their proposals must (1) include the projects' full projected costs and (2) demonstrate that the projects are not subsidized by their affiliates. DPUC can require the companies to submit additional information, which it can use in evaluating the proposals. DPUC can reject proposals that are not in customers' best interests.

Electric companies would be allowed to recover their prudently incurred operating and capital costs for approved projects and earn a reasonable rate of return on their equity under traditional rate-making principles. The recovery would be set in annual contested case at DPUC. DPUC would be required to update the rate of return at least once every four years.

§ 55-57: Integrated resources planning

Development. The bill requires the electric companies to develop a biennial comprehensive plan for procuring energy resources. The plan must assess (1) the energy and capacity requirements of the customers for the next two, five, and 10 years; (2) the impact of current and projected environmental standards, including those related to greenhouse gas emissions, and the Clean Air Act goals and how different resources could help achieve those standards and goals; (3) energy security and economic risks associated with potential energy resources; and (4) the estimated lifetime cost and availability of potential energy resources.

Under the plan, resource needs must first be met through all available energy efficiency and demand reduction resources that are cost effective, reliable and feasible. The plan must specify (1) the total amount of energy and capacity resources needed to meet the requirements of all customers, (2) to what extent demand side measures can cost-effectively meet these needs, (3) needs for generating capacity and transmission and distribution improvements, (4) how developing these resources will reduce and stabilize the costs of electricity to consumers, and (5) how each of the proposed resources should be procured, including the optimal contract periods.

The plan must consider: (1) approaches to maximizing the impact of demand side measures; (2) the extent to which generation needs can be met by renewable and cogeneration facilities; (3) the impact of regional market incentives; (3) types and locations for generation that would optimize the generation portfolio in the state; (4) fuel types, diversity, availability, firmness of supply and security; (5) environmental impacts of the various fuels, including how they affect the state's ability to meet its greenhouse gas emission goals; (6) reliability, peak load and energy forecasts, system contingencies and existing resource availabilities; (7) import limits and the appropriate reliance on imports; (8) the costs and benefits of options for the ownership of energy resources, including ownership by an electric company; and (9) the impact of the plan on the costs of electric customers, including the effects on rate stability and affordability for low-income customers. In addition, if the companies determine it is in the best interest of customers, the plan must address how new resources could be integrated into their procurement of power for standard service and last resort service.

Review by the Connecticut Energy Advisory Board. The companies must submit the plan to a reformulated CEAB by September 1 in each odd-numbered year. Under current law, CEAB consists of nine members, including six agency heads and one member appointed by the governor, house speaker, and senate president pro tempore. The bill drops the DPUC chairperson from the board. It increases the number of gubernatorial appointees to three and specifies that they represent (1) an environmental organization with knowledge of energy efficiency programs, (2) in-state generators, and (3) a consumer advocacy organization with knowledge of energy issues. It requires that the legislative appointees be experts on energy issues.

The bill requires CEAB to review and approve the plan within 120 days of receiving it. (The Transportation and Agriculture commissioners, who are CEAB members, do not participate in this review. ) The board may retain a consultant with experience in energy procurement and may consult with the regional independent system operator. CEAB must approve or modify the plan. CEAB must submit the reviewed plan, together with a statement of any unresolved issues, to DPUC.

DPUC must consider the plan in an uncontested docket and give interested parties an opportunity to submit comments on it. Within 120 after CEAB submits the plan, DPUC must approve, or modify and approve, the plan.

Implementation of the plan. DPUC must implement the plan by (1) issuing RFPs to meet specified energy resource needs set forth in the plan or by directing the electric companies to issue such RFPs, (2) directing the electric companies to include additional demand-side contained in the plan into their existing conservation plans for review by the Energy Conservation Board, (3) directing the electric companies to submit proposals for specific transmission or distribution facility improvements or projects identified in the plan, or (4) taking other actions within its authority to implement the plan.

From January 1, 2008 until the plan is implemented by DPUC, the electric companies must include all available energy efficiency and demand reduction resources that are cost effective, reliable and feasible in the conservation plans they are required to prepare under existing law.

§ 58: New RFPs for resources

The bill authorizes DPUC to issue new RFPs based on the results of the integrated resources plan. The RFPs can seek proposals for (1) demand response, efficiency, and load management measures and (2) new, expanded, or repowered generation, which would be paid for on a cost-of-service basis. (Under cost of service regulation, DPUC would set the rate for the power produced by a plant so as to allow the plant's owner to recover its prudently incurred capital and operating costs, and earn a reasonable rate of return on its investments. ) Proposals made by non-utility generators must include draft contracts, which can run for up to 15 years. The draft contracts for all types of non-utility generation must include all of the capacity rights associated with the proposed generating plants. Proposals for new baseload and intermediate generating plants must also include the energy the plants would produce. The draft contracts must provide for compensation to be made on a cost-of-service basis.

As is the case under the current RFP, (1) DPUC can retain a consultant to help it develop the new RFPs and evaluate proposals, (2) the cost of the consultants are recovered through the congestion charge on electric bills and (3) DPUC must publish the RFPs in one or more newspapers and post them on its Website.

DPUC must evaluate the proposals made under the new RFPs based on: consistency with environmental sustainability, reduction and stabilization of rates, fuel diversity, and reduction or minimization of greenhouse gas emissions. DPUC can only approve proposals that are in customers' long-term interests. It must make all of the proposals available to the public six months after accepting or rejecting them.

Electric companies must enter into contracts with the non-utility developers of projects selected under the new RFPs, and either party can ask DPUC to mediate disputes. The contracts require DPUC approval, must contain terms that mitigate long-term risks to customers, and cannot run for more than 15 years. Winning proposals are eligible for expedited siting under certain circumstances.

§ 59: DPUC proceeding if new RFPs do not meet demands identified in the plan

On or after July 1, 2009, if DPUC does not receive and approve proposals that cover the needs identified in the integrated resources plan described below, it must conduct a needs assessment as a contested case to identify the total amount and type of resources still needed. If it determines that there are unaddressed needs, it must conduct a cost/ benefit analysis of having the state serve as the “builder of last resort. ” It may also issue a new RFP to electric companies to have them meet this need by building new generation or demand response measures, subject to the same conditions as the new RFPs described above. If approved, the companies would be compensated on a cost-of-service basis.

ENERGY ASSISTANCE

§ 79: Connecticut Energy program

The bill requires the social services (DSS) commissioner to maintain the increases in benefits under the Connecticut Energy Assistance Program (CEAP) the legislature adopted in 2005 when developing the CEAP plan for the 2007/2008 heating season, which will be submitted for legislative approval in the fall of 2007.

§ 79: DSS Discounted Fuel Purchasing Program

The bill broadens requirements for DSS to buy fuel at discounted prices for CEAP participants. It expands the requirement to include all deliverable fuels, rather than just heating oil. It also requires that DSS ensure that all fuel assistance recipients are treated the same as other similarly situated customers and that fuel dealers do not discriminate against them under their standard payment, delivery, service, or other similar plans. DSS must take advantage of programs offered by dealer that reduce the cost of the fuel, such as fixed price, capped price, pre-purchase or summer-fill options, thereby reducing CEAP's program cost and making the maximum use of its revenues. DSS must ensure that all agencies administering CEAP to make payments to participating dealers in advance of the delivery of energy where the dealer provides price-management strategies that require advance payments. The bill requires the community action agencies that administer CEAP provide pricing information from participating dealers. The information must include the statewide or regional retail price per unit of fuel, the reduced price per unit paid by the state, the number of units delivered to the state under the program, and the total savings under the program due to the purchase of deliverable fuel using the dealers' price-management strategies.

§ 80: Winter Shut-Off Moratorium Extension

The bill extends, from April 15th to May 1st, the end date of the annual winter moratorium, during which electric and gas utilities cannot terminate service to hardship customers who cannot pay their utility bills (by law, the start date is November 1). Hardship customers include households (1) whose only income is social security or unemployment benefits, (2) who have a seriously ill household member, and (3) with incomes up to 125% of the federal poverty level, among others. The bill also makes related changes.

§ 84: Operation Fuel

Under current law, electric and gas companies must allow their customers to donate $ 1 per billing cycle to Operation Fuel, which provides assistance to people ineligible for the Connecticut Energy Assistance Program. The bill requires the companies to (1) offer $ 2, $ 4, $ 6, or other donation options; and (2) allow customers who are billed or pay electronically to participate. It also requires Operation Fuel, Inc. (the group that administers the program) to provide fundraising inserts to fuel oil dealers who choose to participate in the program It requires the utilities and the participating fuel oil dealers to coordinate their promotions of the program.

MISCELLANEOUS PROVISIONS

§ 52: Solar contractor licensing

The bill exempts from Department of Consumer Protection licensure requirements employees and subcontractors of licensed solar contractors engaged in solar technology installations.

§ 61: “Net energy” evaluation of proposed power plants

By law, when an application is made to the Siting Council to build a new power plant, CEAB must solicit and evaluate alternative proposals. The bill requires CEAB to also conduct a “net energy analysis” of each plant that is larger than 65 megawatts. This analysis must determine the ratio between (1) the amount of energy the plant will produce over its lifetime to (2) the amount of energy used in plant construction and maintenance and the total fuel cycle, both over the plant's lifetime.

§ 64, 65: Expedited DEP permitting of new generation

The bill requires DEP to expedite the permitting of distributed resources by issuing a final decision within 120 days of the application date. The requirement applies to applications filed between January 1, 2008 and January 1, 2010.

The bill requires DEP to enter into a memorandum of understanding with DPUC by July 1, 2007 regarding the operation of emergency generators. By February 1, 2008, the agency commissioners must report to the Energy and Technology and Environment Committees on the understanding and must report to the committees when they modify the agreement.

§ 66: Cost sharing for relocating electric utility facilities

PA 05-210 relieved the Department of Transportation of cost sharing requirements when electric transmission and trunkline facilities had to be relocated in highway rights-of-way. This bill limits these changes to facilities owned by an electric company.

§ 67: Domestic electric companies

The bill reinstates a provision repealed by PA 05-1, June Special Session, regarding the charters of “domestic electric companies. ”

§ 68: DPUC commissioners

The bill requires that at least one of the DPUC commissioners appointed on or after October 1, 2008 have experience in utility customer advocacy.

§ 69-72: -Various DPUC and CEAB studies

§ 74: Purchased gas adjustment

Under current law, DPUC can approve a mechanism that adjusts natural gas rates to reflect differences between projected and actual sales. The bill requires DPUC to adopt such a mechanism, by January 1, 2009, as part of each gas company's next rate case.

Section 76, 77: Technical and conforming

§ 89, 90: Restrictions on eminent domain for energy facilities

The bill bars municipalities from condemning or restricting the operation of any existing energy facility (e. g. , power plants, transmission lines, and fuel storage facilities) that DPUC determines is a critical part of the state's infrastructure, without getting the written approval of DPUC, OPM, CEAB, and the Siting Council stating that this would not harm the state or region's ability to provide a particular energy resource to its citizens.

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