Connecticut Seal

General Assembly

 

Raised Bill No. 1037

January Session, 2013

 

LCO No. 3801

 

*03801_______ET_*

Referred to Committee on ENERGY AND TECHNOLOGY

 

Introduced by:

 

(ET)

 

AN ACT CONCERNING THE PROCUREMENT PLAN, INTEGRATED RESOURCES PLAN AND COMPREHENSIVE ENERGY STRATEGY AND MINOR AND TECHNICAL REVISIONS TO THE UTILITY STATUTES.

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

Section 1. Section 16-2 of the general statutes is amended by adding subsection (m) as follows (Effective from passage):

(NEW) (m) Notwithstanding any provision of the general statutes, the decisions of the Public Utilities Regulatory Authority, including but not limited to, decisions relating to rate amendments arising from the Integrated Resources Plan, the Comprehensive Energy Strategy, the Conservation Load Management Plan and policies established by the Department of Energy and Environmental Protection, shall be guided by said plans and strategy and such policies.

Sec. 2. Section 16-18a of the general statutes is amended by adding subsection (c) as follows (Effective July 1, 2013):

(NEW) (c) For any proceeding before the Federal Energy Regulatory Commission, the United States Department of Energy, the United States Nuclear Regulatory Commission, the United States Securities and Exchange Commission, the Federal Trade Commission, the United States Department of Justice or the Federal Communications Commission, the Public Utilities Regulatory Authority, the Department of Energy and Environmental Protection and the Office of the Consumer Counsel may retain consultants to assist its respective staff in such proceeding by providing expertise in areas in which staff expertise does not currently exist or to supplement staff expertise. All reasonable and proper expenses of such consultants shall be borne by the public service companies, certified telecommunications providers, electric suppliers or gas registrants affected by the decisions of such proceeding and shall be paid at such times and in such manner as the authority directs, provided such expenses (1) shall be apportioned in proportion to the revenues of each affected entity as reported to the authority pursuant to section 16-49 for the most recent fiscal year, and (2) shall not exceed two hundred fifty thousand dollars per proceeding, including any appeals thereof, in any calendar year, unless the authority finds good cause for exceeding the limit. The authority shall recognize all such expenses as proper business expenses of the affected entities for ratemaking purposes pursuant to section 16-19e, if applicable.

Sec. 3. (NEW) (Effective from passage) The Commissioner of Energy and Environmental Protection shall be a party to each proceeding before the Public Utilities Regulatory Authority and shall participate in any such proceeding to the extent the commissioner deems necessary. The commissioner may appeal, without having to demonstrate aggrievement, to the Superior Court, as provided in chapter 54 of the general statutes, from a decision, order or authorization in any such proceeding that is a contested case, even if the commissioner failed to appear or participate in such proceeding.

Sec. 4. Section 16-35 of the general statutes is amended by adding subsection (c) as follows (Effective from passage):

(NEW) (c) Notwithstanding any provision of this title and title 16a, proceedings in which the Public Utilities Regulatory Authority conducts a request for proposals or any other procurement process for the purpose of acquiring electricity products or services for the benefit of ratepayers shall be uncontested.

Sec. 5. Subdivision (5) of subsection (c) of section 16-244c of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(5) For standard service contracts procured prior to [department] the authority's approval of the [plan developed pursuant to section 16-244m] Procurement Plan, each bidder for a standard service contract shall submit its bid to the electric distribution company and the third-party entity who shall jointly review the bids and submit an overview of all bids together with a joint recommendation to the [department] authority as to the preferred bidders. The [department] authority may, within ten business days of submission of the overview, reject the recommendation regarding preferred bidders. In the event that the [department] authority rejects the preferred bids, the electric distribution company and the third-party entity shall rebid the service pursuant to this subdivision. The [department] authority shall review each bid in an uncontested proceeding that shall include a public hearing and in which any interested person, including, but not limited to, the Consumer Counsel, [and] the Commissioner of Energy and Environmental Protection or the Attorney General may participate.

Sec. 6. Section 16-244m of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) (1) On or before January 1, 2012, and annually thereafter, the procurement manager of the [Department of Energy and Environmental Protection] Public Utilities Regulatory Authority, in consultation with each electric distribution company, and [with] others at the procurement manager's discretion, including, but not limited to, the Commissioner of Energy and Environmental Protection, a municipal energy cooperative established pursuant to chapter 101a, other than entities, individuals and companies or their affiliates potentially involved in bidding on standard service, shall develop a plan for the procurement of electric generation services and related wholesale electricity market products that will enable each electric distribution company to manage a portfolio of contracts to reduce the average cost of standard service while maintaining standard service cost volatility within reasonable levels. Each [procurement plan] Procurement Plan shall provide for the competitive solicitation for load-following electric service and may include a provision for the use of other contracts, including, but not limited to, contracts for generation or other electricity market products and financial contracts, and may provide for the use of varying lengths of contracts. If such plan includes the purchase of full requirements contracts, it shall include an explanation of why such purchases are in the best interests of standard service customers.

(2) All reasonable costs associated with the development of the Procurement Plan by the authority shall be recoverable through the assessment in section 16-49. All electric distribution companies' reasonable costs associated with the development of the Procurement Plan shall be recoverable through a reconciling nonbypassable component of the electric rates as determined by the authority.

(b) The procurement manager shall, not less than quarterly, [meet with the Commissioner of Energy and Environmental Protection and] prepare a written report on the implementation of the [plan] Procurement Plan. If the procurement manager finds that an interim amendment to the annual [procurement] plan might substantially further the goals of reducing the cost or cost volatility of standard service, the procurement manager may petition the Public Utilities Regulatory Authority for such an interim amendment. The Public Utilities Regulatory Authority shall provide notice of the proposed amendment to the Office of Consumer Counsel and the electric distribution companies. The Office of Consumer Counsel and the electric distribution companies shall have two business days from the date of such notice to request an uncontested proceeding and a technical meeting of the Public Utilities Regulatory Authority regarding the proposed amendment, which proceeding and meeting shall occur if requested. The Public Utilities Regulatory Authority may approve, modify or deny the proposed amendment, with such approval, modification or denial following the technical meeting if one is requested. The Public Utilities Regulatory Authority's ruling shall occur within three business days after the technical meeting, if one is requested, or within three business days of the expiration of the time for requesting a technical meeting if no technical meeting is requested. The Public Utilities Regulatory Authority may maintain the confidentiality of the technical meeting to the full extent allowed by law.

(c) The costs of procurement for standard service shall be borne solely by the standard service customers.

(d) (1) The [Department of Energy and Environmental Protection] Public Utilities Regulatory Authority shall conduct an uncontested proceeding to approve, with any amendments it determines necessary, [a procurement plan] the Procurement Plan submitted pursuant to subsection (a) of this section.

(2) The [Department of Energy and Environmental Protection] Public Utilities Regulatory Authority shall report 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 regarding the [procurement plan] Procurement Plan and its implementation. Any such report may be submitted electronically.

Sec. 7. Section 16-245hh of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

The Connecticut Clean Energy Finance and Investment Authority created pursuant to section 16-245n, in consultation with the [Department] Commissioner of Energy and Environmental Protection, shall establish a program to be known as the "condominium renewable energy grant program". Under such program, the board of directors of said authority shall provide grants to residential condominium associations and residential condominium owners, within available funds, for purchasing clean energy sources, including solar energy, geothermal energy and fuel cells or other energy-efficient hydrogen-fueled energy.

Sec. 8. Subsection (b) of section 16a-3 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(b) The board shall (1) report to the General Assembly on the status of programs administered by the Department of Energy and Environmental Protection [,] pursuant to title 16 or this title, and (2) consult with the Commissioner of Energy and Environmental Protection regarding the [integrated resource plan] Integrated Resources Plan [developed pursuant to section 16a-3a,] and the Comprehensive Energy Strategy. [and (3) review, within available resources, requests from the General Assembly.]

Sec. 9. Section 16a-3a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) The [Department] Commissioner of Energy and Environmental Protection, in consultation with the Connecticut Energy Advisory Board and the electric distribution companies, shall review the state's energy and capacity resource assessment and [develop an integrated resources plan] approve the Integrated Resources Plan for the procurement of energy resources, including, but not limited to, conventional and renewable generating facilities, energy efficiency, load management, demand response, combined heat and power facilities, distributed generation and other emerging energy technologies to meet the projected requirements of their customers in a manner that minimizes the cost of [such] all energy resources to customers over time and maximizes consumer benefits consistent with the state's environmental goals and standards. [Such integrated resources plan] The Integrated Resources Plan shall seek to lower the cost of electricity.

(b) On or before January 1, 2012, and biennially thereafter, the [Department] Commissioner of Energy and Environmental Protection, in consultation with the Connecticut Energy Advisory Board and the electric distribution companies, shall prepare an assessment of (1) the energy and capacity requirements of customers for the next three, five and ten years, (2) the manner of how best to eliminate growth in electric demand, (3) how best to level electric demand in the state by reducing peak demand and shifting demand to off-peak periods, (4) the impact of current and projected environmental standards, including, but not limited to, those related to greenhouse gas emissions and the federal Clean Air Act goals and how different resources could help achieve those standards and goals, (5) energy security and economic risks associated with potential energy resources, and (6) the estimated lifetime cost and availability of potential energy resources.

(c) Resource needs shall first be met through all available energy efficiency and demand reduction resources that are cost-effective, reliable and feasible. The projected customer cost impact of any demand-side resources considered pursuant to this subsection shall be reviewed on an equitable basis with nondemand-side resources. The [integrated resources plan] Integrated Resources Plan shall specify (1) the total amount of energy and capacity resources needed to meet the requirements of all customers, (2) the extent to which demand-side measures, including efficiency, conservation, demand response and load management can cost-effectively meet these needs in a manner that ensures equity in benefits and cost reduction to all classes and subclasses of consumers, (3) needs for generating capacity and transmission and distribution improvements, (4) how the development of such resources will reduce and stabilize the costs of electricity to each class and subclass of consumers, and (5) the manner in which each of the proposed resources should be procured, including the optimal contract periods for various resources.

(d) The [integrated resources plan] Integrated Resources Plan shall consider: (1) Approaches to maximizing the impact of demand-side measures; (2) the extent to which generation needs can be met by renewable and combined heat and power facilities; (3) the optimization of the use of generation sites and generation portfolio existing within the state; (4) fuel types, diversity, availability, firmness of supply and security and environmental impacts thereof, including impacts on meeting the state's greenhouse gas emission goals; (5) reliability, peak load and energy forecasts, system contingencies and existing resource availabilities; (6) import limitations and the appropriate reliance on such imports; (7) the impact of the [procurement plan] Integrated Resources Plan on the costs of electric customers; and (8) the effects on participants and nonparticipants. Such plan shall include options for lowering the rates and cost of electricity. [The Department of Energy and Environmental Protection shall hold a public hearing on such integrated resources plan pursuant to chapter 54. The commissioner may approve or reject such plan with comments.]

(e) [The procurement manager of the Public Utilities Regulatory Authority, in consultation with the electric distribution companies, the regional independent system operator, and the Connecticut Energy Advisory Board, shall develop a procurement plan and hold public hearings on the proposed plan. Such hearings shall not constitute a contested case and shall be held in accordance with chapter 54. The Public Utilities Regulatory Authority shall give not less than fifteen days' notice of such proceeding by electronic publication on the department's Internet web site.] In approving the Integrated Resources Plan, the commissioner shall conduct an uncontested proceeding that shall include not less than one public meeting and one technical meeting at which technical personnel shall be available to answer questions. Such meetings shall be transcribed and posted on the department's Internet web site. Not less than fifteen days before any such public meeting and thirty days before any such technical meeting, the commissioner shall publish notice of such meeting and post the text of the Integrated Resources Plan on the department's Internet web site. Notice of such [hearing] public meeting or technical meeting may also be published in one or more newspapers having state-wide circulation if deemed necessary by the commissioner. Such notice shall state the date, time, and place of the [hearing] meeting, the subject matter of the [hearing] meeting and time period during which comments may be submitted to the commissioner, the statutory authority for the proposed [integrated resources plan] Integrated Resources Plan and the location where a copy of the proposed [integrated resources] plan may be obtained or examined. [in addition to posting the plan on the department's Internet web site.] The commissioner shall provide a time period of not less than [forty-five] sixty days from the date the notice is published on the department's Internet web site for public review and comment. The commissioner shall consider fully [, after all public meetings,] all written and oral comments concerning the proposed [integrated resources plan and] Integrated Resources Plan after all public meetings and before approving the final plan. The commissioner shall [post on the department's Internet web site and] (1) notify by electronic mail each person who requests such notice, [. The commissioner shall make available] and (2) post on the department's Internet web site the electronic text of the final [integrated resources plan or an Internet web site where the final integrated resources plan is posted,] Integrated Resources Plan and a report summarizing [(1)] all public comments [,] and [(2)] the changes made to the final [integrated resources] plan in response to such comments and the reasons therefor. The commissioner shall submit the final [integrated resources plan] Integrated Resources Plan by electronic means, or as requested, to the joint standing committees of the General Assembly having cognizance of matters relating to energy and the environment. [The department's Bureau of Energy shall, after the public hearing, make recommendations to the Commissioner of Energy and Environmental Protection regarding plan modifications. Said commissioner shall approve or reject the plan with comments.] The commissioner may modify the Integrated Resources Plan to correct clerical errors at any time without following the procedures outlined in this subsection.

(f) [On or before March 1, 2012] Not later than two years after the adoption of the Integrated Resources Plan, and every two years thereafter, the [Department] Commissioner of Energy and Environmental Protection shall report to the joint standing committees of the General Assembly having cognizance of matters relating to energy and the environment regarding goals established and progress toward implementation of [the integrated resources plan established pursuant to this section,] such plan, as well as any recommendations [for the process.] concerning such plan. Any such report may be submitted electronically.

(g) All reasonable costs associated with the department's development of the resource assessment and [the development of the integrated resources plan and the procurement plan] the Integrated Resources Plan shall be recoverable through the assessment in section 16-49. All electric distribution companies' reasonable costs associated with the development of the plan shall be recoverable through a reconciling nonbypassable component of electric rates as determined by the authority.

(h) [The decisions of the Public Utilities Regulatory Authority shall be guided by the goals of the Department of Energy and Environmental Protection, as described in section 22a-2d, and with the goals of the integrated resources plan approved pursuant to this section and the comprehensive energy plan developed pursuant to section 16a-3d and shall be based on the evidence in the record of each proceeding.] In the event that the Integrated Resources 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 may open a proceeding to review such provision, in accordance with the procedures established in sections 16-19 and 16-19e to ensure that rates remain just and reasonable.

Sec. 10. Section 16a-3b of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) The Public Utilities Regulatory Authority shall oversee the implementation of the [integrated resources plan, approved by the Commissioner of Energy and Environmental Protection pursuant to section 16a-3a] Integrated Resources Plan and the Procurement Plan. The electric distribution companies shall implement the demand-side measures, including, but not limited to, energy efficiency, load management, demand response, combined heat and power facilities, distributed generation and other emerging energy technologies, specified in [said plan through] the Integrated Resources Plan and included in the comprehensive [conservation and load management plan prepared pursuant to section 16-245m for review] Conservation and Load Management Plan approved by the Energy Conservation Management Board and the Commissioner of Energy and Environmental Protection. The electric distribution companies shall submit proposals to appropriate regulatory agencies to address transmission and distribution upgrades as specified in [said plan] the Integrated Resources Plan.

(b) [If the integrated resources plan specifies the construction of a generating facility] When the Integrated Resources Plan contains an option to procure new sources of generation, the authority shall develop and issue a request for proposals, shall publish such request for proposals in one or more newspapers or periodicals, as selected by the authority, and shall post such request for proposals on its Internet web site. In considering proposals submitted pursuant to this request, the authority shall give preference to proposals for generation without any financial assistance, including, but not limited to, long-term contract financing or ratepayer guarantees. Pursuant to a nondisclosure agreement, the authority shall make available to the commissioner, the Office of Consumer Counsel and the Attorney General all confidential bid information it receives pursuant to this subsection, provided the bids and any analysis of such bids shall not be subject to disclosure under the Freedom of Information Act. Three months after the authority issues a final decision, it shall make available all financial bid information, provided such information regarding the bidders not selected be presented in a manner that conceals the identities of such bidders.

(1) On and after July 1, 2008, an electric distribution company may submit proposals in response to a request for proposals on the same basis as other respondents to the solicitation. A proposal submitted by an electric distribution company shall include its full projected costs such that any project costs recovered from or defrayed by ratepayers are included in the projected costs. An electric distribution company submitting any such bid shall demonstrate to the satisfaction of the authority that its bid is not supported in any form of cross subsidization by affiliated entities. If the authority approves such electric distribution company's proposal, the costs and revenues of such proposal shall not be included in calculating such company's earning for purposes of, or in determining whether its rates are just and reasonable under, sections 16-19, 16-19a and 16-19e. An electric distribution company shall not recover more than the full costs identified in any approved proposal. Affiliates of the electric distribution company may submit proposals pursuant to section 16-244h, regulations adopted pursuant to section 16-244h and other requirements the authority may impose.

(2) If the authority selects a nonelectric distribution company proposal, an electric distribution company shall, within thirty days of the selection of a proposal by the authority, negotiate in good faith the final terms of a contract with a generating facility and shall apply to the authority for approval of such contract. Upon authority approval, the electric distribution company shall enter into such contract.

(3) The authority shall determine the appropriate manner of cost recovery for proposals selected pursuant to this section.

(4) The authority may retain the services of a third-party entity with expertise in the area of energy procurement to oversee the development of the request for proposals and to assist the authority in its approval of proposals pursuant to this section. The reasonable and proper expenses for retaining such third-party entity shall be recoverable through the generation services charge.

(c) The electric distribution companies shall issue requests for proposals to acquire any other resource needs not identified in subsection (a) or (b) of this section but specified in the [integrated resources plan] Integrated Resources Plan approved by the Commissioner of Energy and Environmental Protection pursuant to section 16a-3a, as amended by this act. Such requests for proposals shall be subject to approval by the authority.

Sec. 11. Subsection (a) of section 16a-3c of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) On and after July 1, 2011, if the Public Utilities Regulatory Authority does not receive and approve proposals [pursuant to the requests for proposals processes, pursuant to section 16a-3b,] sufficient to reach the goal set by the [integrated resources plan approved pursuant to section 16a-3a] Integrated Resources Plan, the authority may order an electric distribution company to submit for the authority's review in a contested case proceeding, in accordance with chapter 54, a proposal to build and operate an electric generation facility in the state. An electric distribution company shall be eligible to recover its prudently incurred costs consistent with the principles set forth in section 16-19e for any generation project approved pursuant to this section.

Sec. 12. Section 16a-3d of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) On or before [July 1, 2012] October 1, 2013, and every three years thereafter, the Commissioner of Energy and Environmental Protection, in consultation with the Connecticut Energy Advisory Board, shall prepare a [comprehensive energy plan] Comprehensive Energy Strategy. Such [plan] strategy shall reflect the legislative findings and policy stated in section 16a-35k and shall incorporate (1) an assessment and plan for all energy needs in the state, including, but not limited to, electricity, heating, cooling, and transportation, (2) the findings of the [integrated resources plan] Integrated Resources Plan, (3) the findings of the plan for energy efficiency adopted pursuant to section 16-245m, [and] (4) the findings of the plan for renewable energy adopted pursuant to section 16-245n, and (5) the Energy Assurance Plan developed for the state of Connecticut pursuant to the American Recovery and Reinvestment Act of 2009, P.L. 111-5, or any successor Energy Assurance Plan developed within a reasonable time prior to the preparation of any such Comprehensive Energy Strategy. Such [plan] strategy shall further include, but not be limited to, (A) an assessment of current energy supplies, demand and costs, (B) identification and evaluation of the factors likely to affect future energy supplies, demand and costs, (C) a statement of progress made toward achieving the goals and milestones set in the preceding [comprehensive energy plan] Comprehensive Energy Strategy, (D) a statement of energy policies and long-range energy planning objectives and strategies appropriate to achieve, among other things, a sound economy, the least-cost mix of energy supply sources and measures that reduce demand for energy, giving due regard to such factors as consumer price impacts, security and diversity of fuel supplies and energy generating methods, protection of public health and safety, environmental goals and standards, conservation of energy and energy resources and the ability of the state to compete economically, (E) recommendations for administrative and legislative actions to implement such policies, objectives and strategies, (F) an assessment of the potential costs savings and benefits to ratepayers, including, but not limited to, carbon dioxide emissions reductions or voluntary joint ventures to repower some or all of the state's coal-fired and oil-fired generation facilities built before 1990, and (G) the benefits, costs, obstacles and solutions related to the expansion and use and availability of natural gas in Connecticut. If the department finds that such expansion is in the public interest, it shall develop a plan to increase the use and availability of natural gas. [for transportation purposes.]

(b) In adopting the [comprehensive energy plan] Comprehensive Energy Strategy, the Commissioner of Energy and Environmental Protection [, or the commissioner's designee,] shall conduct a proceeding [and such proceeding] that shall not be considered a contested case under chapter 54, [provided a hearing pursuant to chapter 54 shall be held] but shall include not less than one public meeting and one technical meeting at which technical personnel shall be available to answer questions. Such meetings shall be transcribed and posted on the department's Internet web site. The commissioner shall give not less than fifteen days' notice of such proceeding by electronic publication on the department's Internet web site. Not later than fifteen days prior to any such public meeting and not less than thirty days prior to any such technical meeting, the commissioner shall publish notice of either such meeting on the department's Internet web site. Notice of such [hearing] public meeting or technical meeting may also be published in one or more newspapers having state-wide circulation if deemed necessary by the commissioner. Such notice shall state the date, time, and place of the meeting, the manner and time period during which comments may be submitted to the commissioner, the subject matter of the meeting, the statutory authority for the proposed [plan] strategy and the location where a copy of the proposed [plan] strategy may be obtained or examined in addition to posting the [plan] proposed strategy on the department's Internet web site. [The Public Utilities Regulatory Authority shall comment on the plan's impact on ratepayers and any other person may comment on the proposed plan.] The commissioner shall provide a time period of not less than [forty-five] sixty days from the date the notice is published on the department's Internet web site for public review and comment. During such time period, any person may provide comments concerning the proposed strategy to the commissioner. The commissioner shall consider fully [, after all public meetings] all written and oral comments concerning the proposed [plan and shall post on the department's Internet web site, and] strategy after all public meetings and technical meetings and before approving the final strategy. The commissioner shall (1) notify by electronic mail each person who requests such notice, [. The commissioner shall make available] and (2) and post on the department's Internet web site the electronic text of the final [plan] strategy [or an Internet web site where the final plan is posted,] and a report summarizing [(1)] all public comments [,] and [(2)] the changes made to the final [plan] strategy in response to such comments and the reasons [therefore] therefor. The Public Utilities Regulatory Authority shall comment on the strategy's impact on natural gas and electric rates.

(c) The commissioner shall submit the final [plan] strategy electronically to the joint standing committees of the General Assembly having cognizance of matters relating to energy and the environment.

(d) The commissioner may, in consultation with the Connecticut Energy Advisory Board, modify the [comprehensive energy plan] Comprehensive Energy Strategy in accordance with the procedures outlined in subsections (b) and (c) of this section. [The commissioner may approve or reject such plan with comments.]

[(e) The decisions of the Public Utilities Regulatory Authority shall be guided by the goals of the Department of Energy and Environmental Protection, as listed in section 22a-2d, and by the goals of the comprehensive energy plan and the integrated resources plan approved pursuant to section 16a-3a and shall be based on the evidence in the record of each proceeding.

(f) All electric distribution companies' reasonable costs associated with the development of the resource assessment shall be recoverable through the systems benefits charge.]

Sec. 13. Section 16a-3e of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) The [integrated resources plan developed pursuant to section 16a-3a,] Integrated Resources Plan to be adopted in 2012 and annually thereafter, shall (1) indicate specific options to reduce [the price of electricity] electric rates and costs. Such options may include the procurement of new sources of generation. In the review of new sources of generation, the [integrated resources plan] Integrated Resources Plan shall indicate whether the private wholesale market can supply such additional sources or whether state financial assistance, long-term purchasing of electricity contracts or other interventions are needed to achieve the goal; (2) analyze in-state renewable sources of electricity in comparison to transmission line upgrades or new projects and out-of-state renewable energy sources, provided such analysis also considers the benefits of additional jobs and other economic impacts and how they are created and subsidized; (3) include an examination of average consumption and other states' best practices to determine why electricity rates are lower elsewhere in the region; (4) assess and compare the cost of transmission line projects, new power sources, renewable sources of electricity, conservation and distributed generation projects to ensure the state pursues only the least-cost alternative projects; (5) continually monitor supply and distribution systems to identify potential need for transmission line projects early enough to identify alternatives; and (6) assess the least-cost alternative to address reliability concerns, including, but not limited to, lowering electricity demand through conservation and distributed generation projects before an electric distribution company submits a proposal for transmission lines or transmission line upgrades to the independent system operator or the Federal Energy Regulatory Commission, provided no provision of such plan shall be deemed to prohibit an electric distribution company from making any filing required by law or regulation.

[(b) If, on and after July 1, 2012, the 2012 integrated resources plan or any subsequent plan contains an option to procure new sources of generation, the Department of Energy and Environmental Protection shall pursue the most cost-effective approach. If the department seeks new sources of generation, it shall issue a notice of interest for generation without any financial assistance, including, but not limited to, long-term contract financing or ratepayer guarantees. If the department fails to receive any responsive cost-effective proposal, it shall issue a request for proposals that may include such financial assistance.]

[(c)] (b) On or before February 1, 2012, the department shall report to the joint standing committee of the General Assembly having cognizance of matters relating to energy regarding state policy and legislative changes the department feels would most likely lower the state's electricity rates.

Sec. 14. Subsection (b) of section 16a-7b of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(b) No municipality other than a municipality operating a plant pursuant to chapter 101 or any special act and acting for purposes thereto may take an action to condemn, in whole or in part, or restrict the operation of any existing and currently operating energy facility, if such facility is first determined by the Public Utilities Regulatory Authority, following a contested case proceeding, held in accordance with the provisions of chapter 54, to comprise a critical, unique and unmovable component of the state's energy infrastructure, unless the municipality first receives written approval from the [department, the Connecticut Energy Advisory Board] Commissioner of Energy and Environmental Protection and the Connecticut Siting Council that such taking would not have a detrimental impact on the state's or region's ability to provide a particular energy resource to its citizens.

Sec. 15. Subsections (c) to (e), inclusive, of section 16a-37u of the general statutes are repealed and the following is substituted in lieu thereof (Effective from passage):

(c) Any state agency or municipality may enter into an energy-savings performance contract, as defined in section 16a-37x, with a qualified energy service provider, as defined in said section 16a-37x, to produce utility cost savings, as defined in said section 16a-37x, or operation and maintenance cost savings, as defined in said section 16a-37x. Any energy-savings measure, as defined in said section 16a-37x, implemented under such contracts shall comply with state [or local] building [codes] code and local building requirements. Any state agency or municipality may implement other capital improvements in conjunction with an energy-savings performance contract as long as the measures that are being implemented to achieve utility and operation and maintenance cost savings and other capital improvements are in the aggregate cost effective over the term of the contract.

(d) On or before January 1, 2013, and annually thereafter, the commissioner shall report, in accordance with the provisions of section 11-4a, on the status of its implementation of the plan and provide recommendations regarding energy use in state buildings to the joint standing committee of the General Assembly having cognizance of matters relating to energy. Any such report may be submitted electronically.

(e) Not later than January fifth, annually, the commissioner shall submit a report to the Governor and the joint standing committee of the General Assembly having cognizance of matters relating to energy planning and activities. The report shall (1) indicate the total number of energy audits and technical assistance audits of state-owned and leased buildings, (2) summarize the status of the energy conservation measures recommended by such audits, (3) summarize all energy conservation measures implemented during the preceding twelve months in state-owned and leased buildings which have not had such audits, (4) analyze the availability and allocation of funds to implement the measures recommended under subdivision (2) of this subsection, (5) list each budgeted agency, as defined in section 4-69, which occupies a state-owned or leased building and has not cooperated with the Commissioner of Administrative Services and the Commissioner of Energy and Environmental Protection in conducting energy and technical assistance audits of such building and implementing operational and maintenance improvements recommended by such audits and any other energy conservation measures required for such building by the [secretary] Commissioner of Energy and Environmental Protection, in consultation with the Secretary of the Office of Policy and Management, (6) summarize all life-cycle cost analyses prepared under section 16a-38 during the preceding twelve months, and summarize agency compliance with the life-cycle cost analyses, and (7) identify any state laws, regulations or procedures that impede innovative energy conservation and load management projects in state buildings. Any such report may be submitted electronically.

Sec. 16. Subsection (a) of section 16a-40l of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) On or before October 1, 2011, the Department of Energy and Environmental Protection shall establish a residential heating equipment financing program. Such program shall allow residential customers to finance, through on-bill financing or other mechanism, the installation of energy efficient natural gas or heating oil burners, boilers and furnaces or ductless heat pumps to replace (1) burners, boilers and furnaces that are not less than seven years old with an efficiency rating of not more than seventy-five per cent, or (2) electric heating systems. Eligible fuel oil furnaces shall have an efficiency rating of not less than eighty-six per cent. An eligible fuel oil burner shall have an efficiency rating of not less than eighty-six per cent with temperature reset controls. An eligible natural gas boiler shall have an annual fuel utilization efficiency rating of not less than ninety per cent and an eligible natural gas furnace shall have an annual fuel utilization efficiency rating of not less than ninety-five per cent. To participate in the program established pursuant to this subsection, a customer shall first have a home energy audit, the cost of which may be financed pursuant to subsection (b) of this section.

Sec. 17. Section 16a-46h of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

[(a)] Each electric, gas or heating fuel customer, regardless of heating source, shall be assessed fees, charges, co-pays or other similar terms to access any audits administered by the Home Energy Solutions program that reflect the contributions made to the Energy Efficiency Fund by each such customer's respective customer type. [, provided such fees, charges, copays and other similar terms shall not exceed a total of ninety-nine dollars for any such audit.]

[(b) After August 1, 2013, the costs of subsidizing such audits to ratepayers whose primary source of heat is not electricity or natural gas shall not exceed five hundred thousand dollars per year.]

Sec. 18. Subsections (b) to (g), inclusive, of section 16a-48 of the general statutes are repealed and the following is substituted in lieu thereof (Effective from passage):

(b) The provisions of this section apply to the testing, certification and enforcement of efficiency standards for the following types of new products sold, offered for sale or installed in the state: (1) Commercial clothes washers; (2) commercial refrigerators and freezers; (3) illuminated exit signs; (4) large packaged air-conditioning equipment; (5) low voltage dry-type distribution transformers; (6) torchiere lighting fixtures; (7) traffic signal modules; (8) unit heaters; (9) residential furnaces and boilers; (10) residential pool pumps; (11) metal halide lamp fixtures; (12) single voltage external AC to DC power supplies; (13) state regulated incandescent reflector lamps; (14) bottle-type water dispensers; (15) commercial hot food holding cabinets; (16) portable electric spas; (17) walk-in refrigerators and walk-in freezers; (18) pool heaters; (19) compact audio players; (20) televisions; (21) digital versatile disc players; (22) digital versatile disc recorders; and (23) any other products as may be designated by the [department] commissioner in accordance with subdivision (3) of subsection (d) of this section.

(c) The provisions of this section do not apply to (1) new products manufactured in the state and sold outside the state, (2) new products manufactured outside the state and sold at wholesale inside the state for final retail sale and installation outside the state, (3) products installed in mobile manufactured homes at the time of construction, or (4) products designed expressly for installation and use in recreational vehicles.

(d) (1) The [department] Commissioner of Energy and Environmental Protection shall adopt regulations, in accordance with the provisions of chapter 54, to implement the provisions of this section and to establish minimum energy efficiency standards for the types of new products set forth in subsection (b) of this section. The regulations shall provide for the following minimum energy efficiency standards:

(A) Commercial clothes washers shall meet the requirements shown in Table P-3 of section 1605.3 of the California Code of Regulations, Title 20: Division 2, Chapter 4, Article 4;

(B) Commercial refrigerators and freezers shall meet the August 1, 2004, requirements shown in Table A-6 of said California regulation;

(C) Illuminated exit signs shall meet the version 2.0 product specification of the "Energy Star Program Requirements for Exit Signs" developed by the United States Environmental Protection Agency;

(D) Large packaged air-conditioning equipment having not more than seven hundred sixty thousand BTUs per hour of capacity shall meet a minimum energy efficiency ratio of 10.0 for units using both electric heat and air conditioning or units solely using electric air conditioning, and 9.8 for units using both natural gas heat and electric air conditioning;

(E) Large packaged air-conditioning equipment having not less than seven hundred sixty-one thousand BTUs per hour of capacity shall meet a minimum energy efficiency ratio of 9.7 for units using both electric heat and air conditioning or units solely using electric air conditioning, and 9.5 for units using both natural gas heat and electric air conditioning;

(F) Low voltage dry-type distribution transformers shall meet or exceed the energy efficiency values shown in Table 4-2 of the National Electrical Manufacturers Association Standard TP-1-2002;

(G) Torchiere lighting fixtures shall not consume more than one hundred ninety watts and shall not be capable of operating with lamps that total more than one hundred ninety watts;

(H) Traffic signal modules shall meet the product specification of the "Energy Star Program Requirements for Traffic Signals" developed by the United States Environmental Protection Agency that took effect in February, 2001, except where the department, in consultation with the Commissioner of Transportation, determines that such specification would compromise safe signal operation;

(I) Unit heaters shall not have pilot lights and shall have either power venting or an automatic flue damper;

(J) On or after January 1, 2009, residential furnaces and boilers purchased by the state shall meet or exceed the following annual fuel utilization efficiency: (i) For gas and propane furnaces, ninety per cent annual fuel utilization efficiency, (ii) for oil furnaces, eighty-three per cent annual fuel utilization efficiency, (iii) for gas and propane hot water boilers, eighty-four per cent annual fuel utilization efficiency, (iv) for oil-fired hot water boilers, eighty-four per cent annual fuel utilization efficiency, (v) for gas and propane steam boilers, eighty-two per cent annual fuel utilization efficiency, (vi) for oil-fired steam boilers, eighty-two per cent annual fuel utilization efficiency, and (vii) for furnaces with furnace air handlers, an electricity ratio of not more than 2.0, except air handlers for oil furnaces with a capacity of less than ninety-four thousand BTUs per hour shall have an electricity ratio of 2.3 or less;

(K) On or after January 1, 2010, metal halide lamp fixtures designed to be operated with lamps rated greater than or equal to one hundred fifty watts but less than or equal to five hundred watts shall not contain a probe-start metal halide lamp ballast;

(L) Single-voltage external AC to DC power supplies manufactured on or after January 1, 2008, shall meet the energy efficiency standards of table U-1 of section 1605.3 of the January 2006 California Code of Regulations, Title 20, Division 2, Chapter 4, Article 4: Appliance Efficiency Regulations. This standard applies to single voltage AC to DC power supplies that are sold individually and to those that are sold as a component of or in conjunction with another product. This standard shall not apply to single-voltage external AC to DC power supplies sold with products subject to certification by the United States Food and Drug Administration. A single-voltage external AC to DC power supply that is made available by a manufacturer directly to a consumer or to a service or repair facility after and separate from the original sale of the product requiring the power supply as a service part or spare part shall not be required to meet the standards in said table U-1 until five years after the effective dates indicated in the table;

(M) On or after January 1, 2009, state regulated incandescent reflector lamps shall be manufactured to meet the minimum average lamp efficacy requirements for federally regulated incandescent reflector lamps contained in 42 USC 6295(i)(1)(A). Each lamp shall indicate the date of manufacture;

(N) On or after January 1, 2009, bottle-type water dispensers, commercial hot food holding cabinets, portable electric spas, walk-in refrigerators and walk-in freezers shall meet the efficiency requirements of section 1605.3 of the January 2006 California Code of Regulations, Title 20, Division 2, Chapter 4, Article 4: Appliance Efficiency Regulations. On or after January 1, 2010, residential pool pumps shall meet said efficiency requirements;

(O) On or after January 1, 2009, pool heaters shall meet the efficiency requirements of sections 1605.1 and 1605.3 of the January 2006 California Code of Regulations, Title 20, Division 2, Chapter 4, Article 4: Appliance Efficiency Regulations;

(P) By January 1, 2014, compact audio players, digital versatile disc players and digital versatile disc recorders shall meet the requirements shown in Table V-1 of Section 1605.3 of the November 2009 amendments to the California Code of Regulations, Title 20, Division 2, Chapter 4, Article 4, unless the commissioner, in accordance with subparagraph (B) of subdivision (3) of this subsection, determines that such standards are unwarranted and may accept, reject or modify according to subparagraph (A) of subdivision (3) of this subsection;

(Q) On or after January 1, 2014, televisions manufactured on or after July 1, 2011, shall meet the requirements shown in Table V-2 of Section 1605.3 of the November 2009 amendments to the California Code of Regulations, Title 20, Division 2, Chapter 4, Article 4, unless the commissioner, in accordance with subparagraph (B) of subdivision (3) of this subsection, determines that such standards are unwarranted and may accept, reject or modify according to subparagraph (A) of subdivision (3) of this subsection; and

(R) In addition to the requirements of subparagraph (Q) of this subdivision, televisions manufactured on or after January 1, 2014, shall meet the efficiency requirements of Sections 1605.3(v)(3)(A), 1605.3(v)(3)(B) and 1605.3(v)(3)(C) of the November 2009 amendments to the California Code of Regulations, Title 20, Division 2, Chapter 4, Article 4, unless the commissioner, in accordance with subparagraph (B) of subdivision (3) of this subsection, determines that such standards are unwarranted and may accept, reject or modify according to subparagraph (A) of subdivision (3) of this subsection.

(2) Such efficiency standards, where in conflict with the State Building Code, shall take precedence over the standards contained in the Building Code. Not later than July 1, 2007, and biennially thereafter, the [department] Commissioner of Energy and Environmental Protection shall review and increase the level of such efficiency standards by adopting regulations in accordance with the provisions of chapter 54 upon a determination that increased efficiency standards would serve to promote energy conservation in the state and would be cost-effective for consumers who purchase and use such new products, provided no such increased efficiency standards shall become effective within one year following the adoption of any amended regulations providing for such increased efficiency standards.

(3) (A) The [department] Commissioner of Energy and Environmental Protection shall adopt regulations, in accordance with the provisions of chapter 54, to designate additional products to be subject to the provisions of this section and to establish efficiency standards for such products upon a determination that such efficiency standards (i) would serve to promote energy conservation in the state, (ii) would be cost-effective for consumers who purchase and use such new products, and (iii) would not impose an unreasonable burden on Connecticut businesses.

(B) The [department] Commissioner of Energy and Environmental Protection, in consultation with the Multi-State Appliance Standards Collaborative, shall identify additional appliance and equipment efficiency standards. The commissioner shall review all California standards and may review standards from other states in such collaborative. The commissioner shall issue notice of such review in the Connecticut Law Journal, allow for public comment and may hold a public hearing within six months of adoption of an efficiency standard by a cooperative member state regarding a product for which no equivalent Connecticut or federal standard currently exists. The [department] commissioner shall adopt regulations in accordance with the provisions of chapter 54 adopting such efficiency standard unless the [department] commissioner makes a specific finding that such standard does not meet the criteria in subparagraph (A) of this subdivision.

(e) On or after July 1, 2006, except for commercial clothes washers, for which the date shall be July 1, 2007, commercial refrigerators and freezers, for which the date shall be July 1, 2008, and large packaged air-conditioning equipment, for which the date shall be July 1, 2009, no new product of a type set forth in subsection (b) of this section or designated by the [department] Commissioner of Energy and Environmental Protection may be sold, offered for sale, or installed in the state unless the energy efficiency of the new product meets or exceeds the efficiency standards set forth in such regulations adopted pursuant to subsection (d) of this section.

(f) The [department] Commissioner of Energy and Environmental Protection shall adopt procedures for testing the energy efficiency of the new products set forth in subsection (b) of this section or designated by the [department] commissioner if such procedures are not provided for in the State Building Code. The [department] commissioner shall use United States Department of Energy approved test methods, or in the absence of such test methods, other appropriate nationally recognized test methods. The manufacturers of such products shall cause samples of such products to be tested in accordance with the test procedures adopted pursuant to this subsection or those specified in the State Building Code.

(g) Manufacturers of new products set forth in subsection (b) of this section or designated by the [department] Commissioner of Energy and Environmental Protection shall certify to the commissioner that such products are in compliance with the provisions of this section, except that certification is not required for single voltage external AC to DC power supplies and walk-in refrigerators and walk-in freezers. All single voltage external AC to DC power supplies shall be labeled as described in the January 2006 California Code of Regulations, Title 20, Section 1607 (9). The [department] commissioner shall promulgate regulations governing the certification of such products. The commissioner shall publish an annual list of such products.

Sec. 19. Subsection (b) of section 16-19kk of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(b) The authority shall complete, on or before December 31, 1991, an investigation into the relationship between a company's volume of sales and its earnings. The authority shall, on or before July 1, 1993, implement rate-making and other procedures and practices in order to encourage the implementation of conservation and load management programs and other programs authorized by the authority promoting the state's economic development, energy and other policy. Such procedures to implement a modification or elimination of any direct relationship between the volume of sales and the earnings of electric, gas, telephone and water companies may include the adoption of a sales adjustment clause pursuant to subsection [(i)] (j) of section 16-19b, or other adjustment clause similar thereto. The authority's investigation shall include a review of its regulations and policies to identify any existing disincentives to the development and implementation of cost effective conservation and load management programs and other programs promoting the state's economic development, energy and other policy.

Sec. 20. Sections 16-2c and 16a-41i of the general statutes are repealed. (Effective from passage)

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

Section 1

from passage

16-2

Sec. 2

July 1, 2013

16-18a

Sec. 3

from passage

New section

Sec. 4

from passage

16-35

Sec. 5

from passage

16-244c(c)(5)

Sec. 6

from passage

16-244m

Sec. 7

from passage

16-245hh

Sec. 8

from passage

16a-3(b)

Sec. 9

from passage

16a-3a

Sec. 10

from passage

16a-3b

Sec. 11

from passage

16a-3c(a)

Sec. 12

from passage

16a-3d

Sec. 13

from passage

16a-3e

Sec. 14

from passage

16a-7b(b)

Sec. 15

from passage

16a-37u(c) to (e)

Sec. 16

from passage

16a-40l(a)

Sec. 17

from passage

16a-46h

Sec. 18

from passage

16a-48(b) to (g)

Sec. 19

from passage

16-19kk(b)

Sec. 20

from passage

Repealer section

Statement of Purpose:

To allow the Public Utilities Regulatory Authority, the Department of Energy and Environmental Protection and the Office of Consumer Counsel to retain consultants in federal proceedings, to permit the Commissioner of Energy and Environmental Protection to be a party to each proceeding before the authority, to clarify that certain proceedings for the procurement of electricity are uncontested, to change references from department to commissioner, and to make minor changes to the Procurement Plan, Integrated Resources Plan and Comprehensive Energy Strategy.

[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.]