Connecticut Seal

General Assembly

 

Substitute Bill No. 1138

    January Session, 2013

 

*_____SB01138ET____032113____*

AN ACT CONCERNING CONNECTICUT'S CLEAN ENERGY GOALS.

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

Section 1. Subdivision (26) of subsection (a) of section 16-1 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):

(26) (A) "Class I renewable energy source" means [(A) energy] (i) electricity derived from (I) solar power, (II) wind power, (III) a fuel cell, [methane gas from landfills,] (IV) geothermal, (V) landfill methane gas, anaerobic digestion or other biogas derived from biological sources, (VI) ocean thermal power, (VII) wave or tidal power, (VIII) low emission advanced renewable energy conversion technologies, (IX) a run-of-the-river hydropower facility [provided such facility] that has a generating capacity of not more than [five] thirty megawatts, does not cause an appreciable change in the river flow, and began operation after July 1, 2003, (X) the incremental increase in generation capacity of a run-of-the-river hydropower facility that has a total generating capacity of not more than thirty megawatts, provided such incremental increase in generation capacity began operation on or after July 1, 2003, or (XI) a [sustainable biomass facility with] biomass facility that uses sustainable biomass fuel, has an average emission rate of equal to or less than .075 pounds of nitrogen oxides per million BTU of heat input and, on or after January 1, 2016, has an average emission rate of equal to or less than .07 pounds of nitrogen oxides per million BTU of heat input on a twenty-four-hour basis and an average combined particulate emission rate of equal to or less than .038 pounds per million BTU of heat input for the previous calendar quarter and, on or after January 1, 2016, purchases allowances through the Regional Greenhouse Gas Initiative or other mechanism prescribed by the Commissioner of Energy and Environmental Protection and implemented by the Public Utilities Regulatory Authority to offset emissions from the transportation of such fuel to such facility, except that energy derived from a [sustainable] biomass facility with a capacity of less than five hundred kilowatts that began construction before July 1, 2003, may be considered a Class I renewable energy source, or [(B)] (ii) any electrical generation, including distributed generation, generated from a Class I renewable energy source, provided, on and after January 1, 2014, any megawatt hours of electricity from a renewable energy source described under this subparagraph that are claimed or counted by a load-serving entity, province or state toward compliance with renewable portfolio standards or renewable energy policy goals in another province or state, other than the state of Connecticut, shall not be eligible for compliance with the renewable portfolio standards established pursuant to section 16-245a, as amended by this act;

(B) "Class IA renewable energy source" means any Class I renewable energy source or hydropower facility that (i) began operation on or after January 1, 2003, (ii) is located in the New England Power Pool Generation Information System geographic eligibility area in accordance with Rule 2.3 or an area abutting the northern boundary of the New England Power Pool Generation Information System geographic eligibility area that is not interconnected with any other control area that is not a part of the New England Power Pool Generation Information System geographic eligibility area, and (iii) delivers power into such geographic eligibility area, provided no such hydropower facility shall be deemed eligible to (I) comply with the Class I renewable energy source requirements pursuant to section 16-245a, as amended by this act, or (II) trade in the New England Power Pool Generation Information System renewable energy credit market;

Sec. 2. 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, 2013):

(44) "Class III source" means the electricity output from combined heat and power systems with an 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, provided on and after January 1, 2014, no such programs supported by ratepayers, including programs overseen by the Energy Conservation Management Board or third-party programs, or auction revenues from the Regional Greenhouse Gas Initiative shall be considered a Class III source;

Sec. 3. Subdivision (45) of subsection (a) of section 16-1 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):

(45) "Sustainable biomass fuel" means biomass that is cultivated and harvested in a sustainable manner. "Sustainable biomass fuel" does not mean construction and demolition waste, as defined in section 22a-208x, finished biomass products from sawmills, paper mills or stud mills, organic refuse fuel derived separately from municipal solid waste, or biomass from old growth timber stands, except where (A) such biomass is used in a biomass gasification plant that received funding prior to May 1, 2006, from the Clean Energy Fund established pursuant to section 16-245n, or (B) the energy derived from such biomass is subject to a long-term power purchase contract pursuant to subdivision (2) of subsection (j) of section 16-244c entered into prior to May 1, 2006; [, (C) such biomass is used in a renewable energy facility that is certified as a Class I renewable energy source by the authority until such time as the authority certifies that any biomass gasification plant, as defined in subparagraph (A) of this subdivision, is operational and accepting such biomass, in an amount not to exceed one hundred forty thousand tons annually, is used in a renewable energy facility that was certified as a Class I renewable energy source by the authority prior to December 31, 2007, and uses biomass, including construction and demolition waste as defined in section 22a-208x, from a Connecticut-sited transfer station and volume-reduction facility that generated biomass during calendar year 2007 that was used during calendar year 2007 to generate Class I renewable energy certificates, or (D) in the event there is no facility as described in subparagraph (A) or (C) of this subdivision accepting such biomass, in an amount not to exceed one hundred forty thousand tons annually, is used in one or more other renewable energy facilities certified either as a Class I or Class II renewable energy source by the authority, provided such facilities use biomass, including construction and demolition waste as defined in said section 22a-208x, from a Connecticut-sited transfer station and volume-reduction facility that generated biomass during calendar year 2007 that was used during calendar year 2007 to generate Class I renewable energy certificates. Notwithstanding the provisions of subparagraphs (C) and (D) of this subdivision, the amount of biomass specified in said subparagraphs shall not apply to a biomass gasification plant, as defined in subparagraph (A) of this subdivision;]

Sec. 4. Subsection (a) of section 16-245a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):

(a) An electric supplier and an electric distribution company providing standard service or supplier of last resort service, pursuant to section 16-244c, shall demonstrate:

(1) On and after January 1, 2006, that not less than two per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(2) On and after January 1, 2007, not less than three and one-half per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(3) On and after January 1, 2008, not less than five per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(4) On and after January 1, 2009, not less than six per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(5) On and after January 1, 2010, not less than seven per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(6) On and after January 1, 2011, not less than eight per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(7) On and after January 1, 2012, not less than nine per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(8) On and after January 1, 2013, not less than ten per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(9) On and after January 1, 2014, not less than eleven per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources or Class IA renewable energy sources, provided not more than two per cent of such total output or services may be generated from Class IA renewable energy sources, and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(10) On and after January 1, 2015, not less than twelve and one-half per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources or Class IA renewable energy sources, provided not more than three per cent of such total output or services may be generated from Class IA renewable energy sources, and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(11) On and after January 1, 2016, not less than fourteen per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources or Class IA renewable energy sources, provided not more than three per cent of such total output or services may be generated from Class IA renewable energy sources, and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(12) On and after January 1, 2017, not less than fifteen and one-half per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources or Class IA renewable energy sources, provided not more than three per cent of such total output or services may be generated from Class IA renewable energy sources, and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(13) On and after January 1, 2018, not less than seventeen per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources or Class IA renewable energy sources, provided not more than three and one-half per cent of such total output or services may be generated from Class IA renewable energy sources, and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(14) On and after January 1, 2019, not less than nineteen and one-half per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources or Class IA renewable energy sources, provided not more than four per cent of such total output or services may be generated from Class IA renewable energy sources, and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(15) On and after January 1, 2020, not less than twenty per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources or Class IA renewable energy sources, provided not more than four and one-half per cent of such total output or services may be generated from Class IA renewable energy sources, and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources; [.]

(16) On and after January 1, 2021, not less than twenty-one per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources or Class IA renewable energy sources, provided not more than five per cent of such total output or services may be generated from Class IA renewable energy sources, and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(17) On and after January 1, 2022, not less than twenty-two per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources or Class IA renewable energy sources, provided not more than five and one-half per cent of such total output or services may be generated from Class IA renewable energy sources, and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(18) On and after January 1, 2023, not less than twenty-three per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources or Class IA renewable energy sources, provided not more than six per cent of such total output or services may be generated from Class IA renewable energy sources, and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(19) On and after January 1, 2024, not less than twenty-four per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources or Class IA renewable energy sources, provided not more than six and one-half per cent of such total output or services may be generated from Class IA renewable energy sources, and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;

(20) On and after January 1, 2025, not less than twenty-five per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources or Class IA renewable energy sources, provided not more than seven and one-half per cent of such total output or services may be generated from Class IA renewable energy sources, and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources.

Sec. 5. Section 16-245a of the general statutes is amended by adding subsections (h) and (i) as follows (Effective from passage):

(NEW) (h) On or after March 31, 2013, the Commissioner of Energy and Environmental Protection, in conjunction with the procurement manager, may, in coordination with other states in the ISO-New England region, or on the commissioner's own, solicit proposals from providers of Class I renewable energy sources constructed on or after the date of such solicitation. If the commissioner finds such proposals to be in the interest of ratepayers and consistent with the policy goals outlined in the Comprehensive Energy Strategy and section 129 of public act 11-80, the commissioner may direct the electric distribution companies to enter into power purchase agreements for energy, capacity and environmental attributes, or any combination thereof, for periods of not more than twenty years for not more than one hundred fifty megawatts of electricity generated by Class I renewable energy sources on behalf of all customers of electric distribution companies to comply with all or part of the renewable portfolio standards obligations of the electric suppliers and electric distribution companies pursuant to this section. Such agreements shall be subject to review and approval by the Public Utilities Regulatory Authority, which review shall commence upon filing the signed power purchase agreements with the authority and the review shall be deemed complete not later than thirty days after such filing. In the event the authority does not issue a decision not later than thirty days after such filing, such agreements shall be deemed approved. The costs of such agreements shall be recovered through a fully reconciling component of electric rates for all customers of electric distribution companies. Such costs shall include reasonable costs incurred by electric distribution companies pursuant to this subsection.

(NEW) (i) On or after July 1, 2013, the Commissioner of Energy and Environmental Protection, in conjunction with the procurement manager, may solicit proposals from providers of Class I renewable energy sources or Class IA renewable energy sources. If the commissioner finds such proposals to be in the interest of ratepayers, including, but not limited to, the delivered price of such sources, and consistent with the policy goals outlined in the Comprehensive Energy Strategy and section 129 of public act 11-80, including, but not limited to, peak load shaving and promotion of wind, solar and other renewable energy technologies, the commissioner may direct the electric distribution companies to enter into power purchase agreements for energy, capacity and environmental attributes, or any combination thereof, for periods of not more than twenty years on behalf of all customers of electric distribution companies to comply with all or part of the renewable portfolio standards obligations of the electric suppliers and electric distribution companies pursuant to this section. Not later than sixty days after receipt of any such agreement, such agreement shall be subject to review and approval by the Public Utilities Regulatory Authority. The costs of such agreements shall be recovered through a fully reconciling component of electric rates for all customers of electric distribution companies. Such costs include the reasonable costs incurred by the electric distribution companies pursuant to this subsection.

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

Section 1

July 1, 2013

16-1(a)(26)

Sec. 2

July 1, 2013

16-1(a)(44)

Sec. 3

July 1, 2013

16-1(a)(45)

Sec. 4

July 1, 2013

16-245a(a)

Sec. 5

from passage

16-245a

Statement of Legislative Commissioners:

In section 1(26)(A)(i)(X), "in generation capacity" was added for clarity.

ET

Joint Favorable Subst.