Connecticut Seal

General Assembly

Amendment

 

January Session, 2013

LCO No. 7932

   
 

*SB0113807932HDO*

Offered by:

 

REP. LESSER, 100th Dist.

REP. WILLIS, 64th Dist.

REP. HADDAD, 54th Dist.

REP. MILLER, 36th Dist.

REP. ORANGE, 48th Dist.

REP. JOHNSON, 49th Dist.

REP. BOWLES, 42nd Dist.

REP. FAWCETT, 133rd Dist.

REP. HOLDER-WINFIELD, 94th Dist.

To: Subst. Senate Bill No. 1138

File No. 120

Cal. No. 469

(As Amended by Senate Amendment Schedules "A" and "C")

"AN ACT CONCERNING CONNECTICUT'S CLEAN ENERGY GOALS. "

Strike section 9 in its entirety and substitute the following in lieu thereof:

"Sec. 9. (NEW) (Effective from passage) (a) During the calendar year commencing January 1, 2014, and continuing each calendar year thereafter, if alternative compliance payments pursuant to subsection (j) of section 16-244c of the general statutes, as amended by this act, or subsection (k) of section 16-245 of the general statutes, as amended by this act, are made for failure to meet the renewable portfolio standards, there shall be a presumption for the calendar year the alternative compliance payments are made that there is an insufficient supply of Class I renewable energy sources, as defined in section 16-1 of the general statutes, as amended by this act, for electric suppliers or electric distribution companies to comply with the requirements of section 16-245a of the general statutes, as amended by this act.

(b) In the event there is a presumption of insufficient supply of Class I renewable energy sources pursuant to subsection (a) of this section for the calendar year the alternative compliance payments are made, the Commissioner of Energy and Environmental Protection may determine whether such payments resulted from a material shortage of Class I renewable energy sources. In making this determination, the commissioner shall consider whether such payments resulted from intentional or negligent action by an electric supplier or electric distribution company not to purchase renewable energy credits available in the New England Power Pool Generation Information System market.

(c) In the event there is such a presumption pursuant to subsection (a) of this section and the commissioner finds that the alternative compliance payments were due to a material shortage of Class I renewable energy sources pursuant to subsection (b) of this section, the commissioner shall determine the adequacy, or potential adequacy, of Class I renewable energy sources to meet the succeeding years' renewable portfolio standard. In making this determination, the commissioner may consider (1) future cost and availability of certificates issued by the New England Power Pool Generation Information System based on the status of projects under development in the region, (2) future requirements of certificates issued by the New England Power Pool Generation Information System in other states, and (3) the projected compliance costs of Class I renewable energy sources.

(d) In the event that there is such a presumption pursuant to subsection (a) of this section and the commissioner finds a material shortage of Class I renewable energy sources pursuant to subsection (b) of this section, and in addition to determining the adequacy pursuant to subsection (c) of this section, the commissioner shall, in consultation with the procurement manager identified in subsection (l) of section 16-2 of the general statutes, the Office of Consumer Counsel and the Attorney General, solicit proposals from providers of Class I renewable energy sources, as defined in section 16-1 of the general statutes, as amended by this act, operational as of the date that such solicitation is issued. 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 requirements to reduce greenhouse gas emissions in accordance with section 22a-200a of the general statutes, and in accordance with the policy goals outlined in the Comprehensive Energy Strategy, adopted pursuant to section 16a-3d of the general statutes, the commissioner, in consultation with the procurement manager identified in subsection (l) of section 16-2 of the general statutes, shall select proposals from such sources to meet up to the amount necessary to ensure an adequate incremental supply of Class I renewable energy sources to rectify any projected shortage of Class I renewable energy supply identified pursuant to subsection (c) of this section. The commissioner shall direct the electric distribution companies to enter into power purchase agreements for energy, capacity and environmental attributes, or any combination thereof, from such selected proposals for periods of not more than twenty years. Certificates issued by the New England Power Pool Generation Information System for any Class I renewable energy sources procured under this section shall be sold in the New England Power Pool Generation Information System renewable energy credit market to be used by any electric supplier or electric distribution company to meet the requirements of section 16-245a of the general statutes, as amended by this act. Any such agreement shall be subject to review and approval by the Public Utilities Regulatory Authority, which review shall commence upon the filing of the signed power purchase agreement with the authority. The authority shall issue a decision on such agreement not later than thirty days after such filing. In the event the authority does not issue a decision within thirty days after such agreement is filed with the authority, the agreement shall be deemed approved. The net costs of any such agreement shall be recovered through a fully reconciling component of electric rates for all customers of electric distribution companies. Such costs may include reasonable costs incurred by electric distribution companies pursuant to this section.

(e) Notwithstanding subsection (b) of section 16-245a of the general statutes, as amended by this act, in the event that (1) for any calendar year commencing on or after January 1, 2014, there is such a presumption pursuant to subsection (a) of this section, (2) the commissioner finds material shortage of Class I renewable energy sources pursuant to subsection (b) of this section, (3) there is a determination of inadequacy pursuant to subsection (c) of this section, and (4) any contracts for Class I renewable energy sources approved by the Public Utilities Regulatory Authority pursuant to subsection (d) of this section yield an amount of Class I renewable energy sources that is insufficient to rectify any projected shortage pursuant to subsection (c) of this section, then commencing on or after January 1, 2016, the commissioner may allow not more than one percentage point of the Class I renewable portfolio standards established pursuant to section 16-245a of the general statutes, as amended by this act, effective for the succeeding and subsequent calendar years to be satisfied by large-scale hydropower procured pursuant to section 7 of this act, except as provided in subsection (f) of this section. The requirements applicable to electric suppliers and electric distribution companies pursuant to section 16-245a of the general statutes, as amended by this act, shall consequently be reduced by not more than one percentage point in proportion to the commissioner's action, provided (A) the commissioner shall not allow a total of more than five percentage points of the Class I renewable portfolio standard to be met by large-scale hydropower by December 31, 2020, and (B) no such large-scale hydropower shall be eligible to trade in the New England Power Pool Generation Information System renewable energy credit market.

(f) In the event there is a surplus of renewable energy credits in a calendar year, as determined by the Public Utilities Regulatory Authority in a contested case, in accordance with the provisions of chapter 54 of the general statutes, the authority shall, for such calendar year, reduce the percentage points of large-scale hydropower used to meet the previous year's renewable portfolio standard, pursuant to subsection (e) of this section, until (1) there is no longer a surplus of such credits, or (2) there are no percentage points of large-scale hydropower used to meet the renewable portfolio standard. "