Connecticut Seal

General Assembly

 

Raised Bill No. 1131

January Session, 2009

 

LCO No. 4869

 

*04869_______ET_*

Referred to Committee on Energy and Technology

 

Introduced by:

 

(ET)

 

AN ACT CONCERNING RENEWABLE ENERGY AND WEATHERIZATION.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective from passage) (a) On and after the effective date of this section, an electric distribution company may offer and implement a green community pilot program within one municipality within its service territory. Such pilot program shall be the coordinated effort among an electric distribution company, a municipality and customers residing in the municipality with the goal of demonstrating the effectiveness of intensive development and deployment of state-of-the-art energy efficiency, load management and control and renewable technologies. The program may include, but not be limited to, development, promotion and installation of intensive, cost-effective energy efficiency measures and equipment, fuel cells, thermal storage, controls and monitoring equipment, renewable or emergency generation, combined heat and power systems, light-emitting diode street lights, smart appliances, electric vehicle charging infrastructure, distribution line loss reduction, assessment and installation of river turbines, advanced metering infrastructure or other relevant energy technologies. The program may provide for enhanced financial incentives to customers within the selected municipality for energy technologies and may include up to one hundred per cent financing of such technologies.

(b) An electric distribution company shall select one municipality as a site for such pilot program within its service territory and shall collaborate with such municipality on the design of the program. The pilot municipality shall be selected based on several factors, including customer base, municipal energy usage, circumstances that would effectively demonstrate the pilot program technologies and support of the municipality.

(c) Arrangements between a municipality or a customer within such municipality and an electric distribution company may include provisions for payments from such company based on a formula to calculate monthly charges that provides for full recovery of any incurred costs, including a return on investment based on the electric distribution company's return on equity as approved by the department in the electric distribution company's last rate case, based on cost-of-service principles pursuant to section 16-19e of the general statutes. Such formula and customer-specific charges shall be included in each agreement. Projects under the pilot program shall be eligible for any state or federal incentives, grants or credits, including, but not limited to, those available under programs administered by the renewable energy investments board or energy conservation management board and any proceeds realized from such sources shall be used to offset costs for projects undertaken pursuant to a green community pilot program. Monthly charges may be included in such customer's electric bills or charged separately. The net costs of said pilot program shall be funded through the electric company's systems benefits charge.

(d) Notwithstanding other provisions of the general statutes, a municipal customer may negotiate and enter into arrangements with an electric distribution company if such arrangements are pursuant to a green community pilot program.

(e) Once a municipality has been selected for participation in a green community pilot program, such municipality and the electric distribution company shall jointly establish a development and deployment plan and such company shall submit said plan to the Department of Public Utility Control for review. The department shall approve such pilot program within sixty days of submittal if such pilot program is consistent with the provisions of this section, provided such program shall not result in a net annual cost to be recovered in the systems benefits charge that exceeds one mill per kilowatt-hour.

Sec. 2. (NEW) (Effective July 1, 2009) (a) There is established an energy efficiency improvement program that shall be the coordinated effort of a municipal or state electric customer and an electric distribution company to provide for the development, installation and recovery of energy efficiency equipment and systems at municipal or state facilities. A not-for-profit hospital may participate in this program at the discretion of and under terms agreeable to an electric distribution company.

(b) Notwithstanding section 16-245m of the general statutes, an electric distribution company may offer an energy efficiency improvement program to its municipal or state customers to improve the energy usage profile at such customers' facilities. Such program shall establish arrangements between an electric distribution company and a municipal or state customer in which the electric distribution company shall develop projects designed to provide energy savings from all fuel sources and other benefits for such facilities in the service territory of said electric distribution company and repayment of the entire cost of the project to the electric distribution company by the specific municipal or state customer undertaking the project through a customer-specific facilities charge. The provisions of section 16-43 of the general statutes shall not apply to said energy efficiency improvement program.

(c) The energy efficiency improvement program shall include, but not be limited to, developing and installing cost-effective energy efficiency measures and equipment, fuel cells, thermal storage, high efficiency gas and oil boilers and burners, controls and monitoring equipment, renewable or emergency generation, combined heat and power systems and other relevant systems. An electric distribution company shall use contractors and installers who provide services in its service territory to assist in the development and installation of technologies at such facilities to the extent practicable and economical.

(d) Arrangements between a municipal or state facility and an electric distribution company shall provide for payments from such facility based on a formula to calculate monthly charges that provides for full recovery of any incurred costs, including a return on investment based on the electric distribution company's return on equity as approved by the department in the electric distribution company's last rate case, based on cost-of-service principles pursuant to section 16-19e of the general statutes. Such formula and facility-specific charges shall be included in each agreement. Monthly charges may be designed in a manner that provides for levelized repayment. Such projects shall be eligible for any state or federal incentives, grants or credits, including, but not limited to, those available under programs administered by the Renewable Energy Investments Board, and any proceeds realized from such sources shall be used to offset costs for projects undertaken pursuant to the energy efficiency improvement program. Monthly charges may be included in such customer's electric bills or charged separately.

(e) If an electric distribution company seeks to include monthly charges in customer electric bills pursuant to subsection (d) of this section, it may seek approval of a rate or tariff to permit such charge and the Department of Public Utility Control shall approve such rate or tariff within sixty days of such request.

(f) Arrangements between an electric distribution company and a municipal or state customer may be of a duration not to exceed ten years, but if the project includes the installation of renewable, emergency or combined heat and power generation, building envelope improvements, thermal storage or cooling equipment, such arrangement may be for a period of up to twenty years.

(g) An electric distribution company that implements an energy efficiency improvement program pursuant to this section shall determine the duration and level of annual funding for such program provided such funding shall not exceed one per cent of its total annual revenues for the last calendar year as reported to the department. Such company may terminate the program at any time, provided arrangements in place shall continue to be enforced.

(h) Notwithstanding any provisions of the general statutes, municipal or state customers may negotiate and enter into agreements with an electric distribution company in which service territory such facility resides if such arrangements are pursuant to an energy efficiency improvement program developed pursuant to this section.

Sec. 3. Subdivision (44) of subsection (a) of section 16-1 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2009):

(44) "Class III source" means the electricity output from combined heat and power systems with an annual operating efficiency level of no less than fifty per cent that are part of customer-side distributed resources developed at commercial and industrial facilities in this state on or after January 1, 2006, a waste heat recovery system installed on or after April 1, 2007, that produces electrical or thermal energy by capturing preexisting waste heat or pressure from industrial or commercial processes, or the electricity savings created in this state from conservation and load management programs begun on or after January 1, 2006.

Sec. 4. (NEW) (Effective from passage) (a) On and after January 1, 2010, electric distribution and electric companies shall implement a tiered distribution charge for residential customers. The first of such tiers shall represent the base average consumption with tiers increasing in blocks of kilowatt-hours as determined by the electric distribution companies. Residential electric space heating tariff customers shall be exempt from such tiered charges established pursuant to this section.

(b) Any additional money generated from the tiered distribution charge implemented pursuant to subsection (a) of this section shall be transferred to the Conservation and Load Management Fund to be used to install solar thermal domestic hot water systems.

Sec. 5. (NEW) (Effective from passage) (a) The Office of Policy and Management shall develop a plan to use any federal economic stimulus funds available pursuant to the American Recovery and Reinvestment Act of 2009 to develop a weatherization program for residents who heat their homes with oil or gas and do not qualify for other weatherization programs.

(b) On or before July 1, 2009, the Office of Policy and Management shall report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to energy with regard to the program developed pursuant to subsection (a) of this section.

Sec. 6. Subsection (b) of section 16-245a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(b) An electric supplier or electric distribution company may satisfy the requirements of this section (1) by purchasing certificates issued by the New England Power Pool Generation Information System, provided the certificates are for (A) energy produced by a generating unit using Class I or Class II renewable energy sources and the generating unit is located in the jurisdiction of the regional independent system operator, or (B) energy imported into the control area of the regional independent system operator pursuant to New England Power Pool Generation Information System Rule 2.7(c), as in effect on January 1, 2006; (2) for those renewable energy certificates under contract to serve end-use customers in the state on or before October 1, 2006, by participating in a renewable energy trading program within said jurisdictions as approved by the Department of Public Utility Control; or (3) by purchasing eligible renewable electricity and associated attributes from [residential] customers who are net producers.

This act shall take effect as follows and shall amend the following sections:

Section 1

from passage

New section

Sec. 2

July 1, 2009

New section

Sec. 3

July 1, 2009

16-1(a)(44)

Sec. 4

from passage

New section

Sec. 5

from passage

New section

Sec. 6

from passage

16-245a(b)

Statement of Purpose:

To promote renewable energy and weatherization projects.

[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.]