Sec. 16a-3a. Integrated Resources Plan re energy resource procurement.
Sec. 16a-3u. Additional power purchase agreements re biomass facilities.
Sec. 16a-3v. Electric system efficiency goals. System load factor growth.
Sec. 16a-14g. Thermal energy network grant and loan program.
Sec. 16a-3a. Integrated Resources Plan re energy resource procurement. (a) The Commissioner of Energy and Environmental Protection, in consultation with the electric distribution companies, shall review the state's energy and capacity resource assessment and 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 customers in a manner that minimizes the cost of all energy resources to customers over time and maximizes consumer benefits consistent with the state's environmental goals and standards, including, but not limited to, the state's greenhouse gas reduction goals established in section 22a-200a. The Integrated Resources Plan shall seek to lower the cost of electricity while meeting such environmental goals and standards in the most cost-effective manner.
(b) On or before January 1, 2020, and biennially thereafter, the Commissioner of Energy and Environmental Protection, in consultation with 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 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 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 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.
(e) In approving the Integrated Resources Plan, the Commissioner of Energy and Environmental Protection 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, said commissioner shall publish notice of either such meeting and post the text of the proposed Integrated Resources Plan on the department's Internet web site. Notice of such 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 subject matter of the meeting and time period during which comments may be submitted to said commissioner, the statutory authority for the proposed Integrated Resources Plan and the location where a copy of the proposed plan may be obtained or examined. Said commissioner shall provide a time period of not less than sixty days from the date the notice is published on the department's Internet web site for public review and comment. Said commissioner shall consider fully all written and oral comments concerning the proposed Integrated Resources Plan after all public meetings and before approving the final plan. Said commissioner shall (1) notify by electronic mail each person who requests such notice, and (2) post on the department's Internet web site the electronic text of the final Integrated Resources Plan and a report summarizing all public comments and the changes made to the final plan in response to such comments and the reasons therefor. The commissioner shall submit the final 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. Said commissioner may modify the Integrated Resources Plan to correct clerical errors at any time without following the procedures outlined in this subsection.
(f) Not later than two years after the adoption of the Integrated Resources Plan, and every two years thereafter, the 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 said plan, as well as any recommendations 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 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) In the event that the Integrated Resources Plan approved 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.
(i) For the Integrated Resources Plan next approved after June 14, 2018, the department shall include recommendations for the creation of a portfolio standard for thermal energy that may include, but not be limited to, biodiesel that is blended into home heating oil, provided the department shall consult with representatives of the heating oil industry and biodiesel producers during the development of such recommendations.
(j) For the Integrated Resources Plan next approved after January 1, 2025, the department shall establish targets for the quantity of energy the Commissioner of Energy and Environmental Protection may seek in any solicitation or solicitations of proposals pursuant to sections 16a-3f to 16a-3j, inclusive, and sections 16a-3m, 16a-3n and 16a-3p, and a proposed schedule for such solicitations for new zero-carbon Class I renewable energy resources necessary to achieve a target of an additional seven per cent of the total load served by the electric distribution companies in the aggregate by 2030 in addition to the requirements established pursuant to section 16-245a. Such targets shall be based on factors including, but not limited to, electricity system needs identified by the Integrated Resources Plan, including, but not limited to, capacity, winter reliability, progress in meeting the goals in the Global Warming Solutions Act pursuant to section 22a-200a, the priorities of the Comprehensive Energy Strategy adopted pursuant to section 16a-3d, positive impacts on the state's economic development, opportunities to coordinate procurement with other states, forecasted trends in technology costs and impacts on the state's ratepayers.
(P.A. 07-242, S. 51; P.A. 09-218, S. 4; P.A. 11-80, S. 89; P.A. 13-298, S. 20; P.A. 18-82, S. 2; 18-180, S. 1; P.A. 19-35, S. 9, 10; 19-71, S. 2, 3; P.A. 25-173, S. 43.)
History: P.A. 07-242 effective June 4, 2007; P.A. 09-218 amended Subsec. (b) to change assessment submittal from annually to biennially and amended Subsec. (e) to eliminate requirement that department approve, or modify and approve, procurement plan not later than 60 days after submittal, effective July 8, 2009; P.A. 11-80 amended Subsec. (a) to require Department of Energy and Environmental Protection, in consultation with Connecticut Energy Advisory Board and electric distribution companies, to develop plan, to change reference to a comprehensive plan to reference to an integrated resources plan and to add provision re plan to seek to lower the cost of electricity, amended Subsec. (b) to change date from on or before January 1, 2008, to on or before January 1, 2012, and to require department, in consultation with the board and companies, to prepare an assessment, amended Subsec. (c) to change “procurement plan” to “integrated resources plan”, to add provision in Subdiv. (2) that needs be met in a manner that ensures equity to all classes and subclasses of consumers and to add in Subdiv. (4) “each class and subclass of”, amended Subsec. (d) to change “procurement plan” to “integrated resources plan”, to add Subdiv. (8) re effects on participants and nonparticipants and to add provisions re options for lowering rates and cost, public hearing and commissioner's ability to approve or reject the plan, amended Subsec. (e) to require that procurement manager, in consultation with electric distribution companies, regional independent system operator and Connecticut Energy Advisory Board, develop a procurement plan and hold public hearings, to delete provision re review of plan, and to add provisions re conduct and notice of hearings and re commissioner's approval or rejection of plan, amended Subsec. (f) to change date from on or before September 30, 2009, to on or before March 1, 2012, to change “Department of Public Utility Control” to “Department of Energy and Environmental Protection” and to change “procurement plan” to “integrated resources plan”, amended Subsec. (g) to delete reference to electric distribution companies, to include integrated resources plan and to replace reference to systems benefits charge with reference to the assessment in Sec. 16-49 and added Subsec. (h) re decisions of authority guided by goals of department and plans, effective July 1, 2011 (Revisor's note: In Subsec. (h), a provision re goals of the plans was reworded editorially by the Revisors for clarity); P.A. 13-298 amended Subsec. (a) to replace provision re developing plan with provision re approving plan, amended Subsec. (b) to delete reference to Connecticut Energy Advisory Board, amended Subsec. (d) to replace “procurement plan” with “Integrated Resources Plan” in Subdiv. (7) and to delete provision re hearing on plan and approval or rejection of plan, substantially revised Subsec. (e) to delete provisions re procurement plan and to add provisions re approval process for Integrated Resources Plan and modification of plan to correct errors, amended Subsec. (f) to replace “On or before March 1, 2012” with “Not later than two years after the adoption of the Integrated Resources Plan” and to add provision re electronic submission of report, amended Subsec. (g) to replace “All costs” with “All reasonable costs” re recovery of cost from developing resource assessment and plan and to add provision re recovery of electric distribution companies' reasonable costs, amended Subsec. (h) to delete provision re decisions of Public Utilities Regulatory Authority and to add provision authorizing authority to open proceeding for review, and made technical and conforming changes, effective July 8, 2013; P.A. 18-82 amended Subsec. (a) by adding reference to the state's greenhouse gas reduction goals in Sec. 22a-200a and adding requirement that plan meet state's environmental goals and standards in the most cost-effective manner, effective June 6, 2018; P.A. 18-180 added Subsec. (i) re consideration of creation of portfolio standard for thermal energy, effective June 14, 2018; P.A. 19-35 amended Subsec. (b) by changing “2012” to “2020” and amended Subsec. (i) by replacing “consider” with “include recommendations for”, deleting provisions re consideration of the creation of a portfolio standard and adding “the development of such recommendations”, effective June 28, 2019; P.A. 19-71 amended Subsec. (b) by changing “2012” to 2020” and added Subsec. (j) re solicitations initiated pursuant to Sec. 16a-3n, effective June 7, 2019; P.A. 25-173 amended Subsec. (j) to delete expired provisions and add provisions to require commissioner to establish targets and proposed schedule for solicitations of new Class I renewable energy resources and make technical and conforming changes.
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Sec. 16a-3g. Solicitation re Class I renewable energy sources or large-scale hydropower. Disposition of renewable energy certificates. On or after July 1, 2013, the Commissioner of Energy and Environmental Protection, in consultation with the procurement manager identified in subsection (l) of section 16-2, the Office of Consumer Counsel and the Attorney General, may, in coordination with other states in the region of the regional independent system operator, as defined in section 16-1, or on the commissioner's own, solicit proposals, in one solicitation or multiple solicitations, from providers of Class I renewable energy sources, as defined in section 16-1, or verifiable large-scale hydropower, as defined in section 16-1. 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, and in accordance with the policy goals outlined in the Comprehensive Energy Strategy, adopted pursuant to section 16a-3d, and section 129 of public act 11-80*, including, but not limited to, base load capacity, peak load shaving and promotion of wind, solar and other renewable and low carbon energy technologies, the commissioner may select proposals from such resources to meet up to five per cent of the load distributed by the state's electric distribution companies. The commissioner may on behalf of all customers of electric distribution companies, direct the electric distribution companies to enter into power purchase agreements for energy, capacity and any environmental attributes, or any combination thereof, for periods of not more than (1) fifteen years, if any such agreement is with a provider of verifiable large-scale hydropower, or (2) twenty years, if any such agreement is with a provider of a Class I renewable energy source. Any such agreement shall be subject to review and approval by the Public Utilities Regulatory Authority, which review shall (A) include a public hearing, and (B) be completed not later than sixty days after the date on which such agreement is filed with the authority. The net costs of any such agreement, including costs incurred by the electric distribution companies under the agreement and reasonable costs incurred by the electric distribution companies in connection with the agreement, shall be recovered through a fully reconciling component of electric rates for all customers of electric distribution companies. Certificates issued by the New England Power Pool Generation Information System for any Class I renewable energy source procured by an electric distribution company pursuant to this section shall be disposed of pursuant to the procedures established pursuant to subsection (g) of section 16-245a.
(P.A. 13-303, S. 7; P.A. 14-94, S. 33; P.A. 25-173, S. 38.)
*Note: Section 129 of public act 11-80 is special in nature and therefore has not been codified but remains in full force and effect according to its terms.
History: P.A. 13-303 effective June 5, 2013; P.A. 14-94 reworded provision re net costs recovered by electric distribution companies pursuant to power purchase agreements, effective June 6, 2014; P.A. 25-173 replaced provision requiring renewable energy certificates issued pursuant to section be sold in renewable energy credit market with provision requiring certificates be disposed of pursuant to procedures established pursuant to Sec. 16-245a(g).
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Sec. 16a-3h. Solicitation re run-of-the-river hydropower, landfill methane gas, biomass, fuel cell, offshore wind, anaerobic digestion or energy storage systems. Disposition of renewable energy certificates. On or after October 1, 2013, the Commissioner of Energy and Environmental Protection, in consultation with the procurement manager identified in subsection (l) of section 16-2, the Office of Consumer Counsel and the Attorney General, may solicit proposals, in one solicitation or multiple solicitations, from providers of the following resources or any combination of the following resources: Run-of-the-river hydropower, landfill methane gas, biomass, fuel cell, offshore wind or anaerobic digestion, provided such source meets the definition of a Class I renewable energy source pursuant to section 16-1, or energy storage systems. In making any selection of such proposals, the commissioner shall consider factors, including, but not limited to (1) whether the proposal is in the interest of ratepayers, including, but not limited to, the delivered price of such sources, (2) the emissions profile of a relevant facility, (3) any investments made by a relevant facility to improve the emissions profile of such facility, (4) the length of time a relevant facility has received renewable energy credits, (5) any positive impacts on the state's economic development, (6) whether the proposal is consistent with requirements to reduce greenhouse gas emissions in accordance with section 22a-200a, including, but not limited to, the development of combined heat and power systems, (7) whether the proposal is consistent with the policy goals outlined in the Comprehensive Energy Strategy adopted pursuant to section 16a-3d, (8) whether the proposal promotes electric distribution system reliability and other electric distribution system benefits, including, but not limited to, microgrids, (9) whether the proposal promotes the policy goals outlined in the state-wide solid waste management plan developed pursuant to section 22a-241a, and (10) the positive reuse of sites with limited development opportunities, including, but not limited to, brownfields or landfills, as identified by the commissioner in any solicitation issued pursuant to this section. The commissioner may select proposals from such resources to meet up to six per cent of the load distributed by the state's electric distribution companies, provided the commissioner shall not select proposals for more than three per cent of the load distributed by the state's electric distribution companies from offshore wind resources. 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 the state's electric distribution companies. Any such agreement shall be subject to review and approval by the Public Utilities Regulatory Authority, which review shall be completed not later than sixty days after the date on which such agreement is filed with the authority. The net costs of any such agreement, including costs incurred by the electric distribution companies under the agreement and reasonable costs incurred by the electric distribution companies in connection with the agreement, shall be recovered through a fully reconciling component of electric rates for all customers of electric distribution companies. All reasonable costs incurred by the Department of Energy and Environmental Protection associated with the commissioner's solicitation and review of proposals pursuant to this section shall be recoverable through the nonbypassable federally mandated congestion charges, as defined in section 16-1. Certificates issued by the New England Power Pool Generation Information System for any Class I renewable energy source procured by an electric distribution company pursuant to this section shall be disposed of pursuant to the procedures established pursuant to subsection (g) of section 16-245a.
(P.A. 13-303, S. 8; P.A. 14-94, S. 34; P.A. 17-144, S. 10; P.A. 18-50, S. 31; P.A. 25-173, S. 39.)
History: P.A. 13-303 effective June 5, 2013; P.A. 14-94 reworded provision re net costs recovered by electric distribution companies pursuant to power purchase agreements, effective June 6, 2014; P.A. 17-144 added “the following resources or any combination of the following resources:”, added references to providers of fuel cell, offshore wind or anaerobic digestion and energy storage systems re solicitation of proposals, added provision re development of combined heat and power systems in Subdiv. (6), added Subdiv. (8) re promotion of electric distribution system reliability and other benefits, added Subdiv. (9) re promotion of policy goals in state-wide solid waste management plan, added Subdiv. (10) re positive reuse of sites with limited development opportunities, added provision re commissioner not to select proposals for more than 3 per cent of load distributed by state's electric distribution companies from offshore wind resources, replaced “ten years” with “twenty years” re power purchase agreements, replaced “shall be sold” with “may be (A) Sold” re Class I renewable energy sources procured under section, added provisions re revenues from sale credited to customers in Subpara. (A), added Subpara. (B) re requirements of Sec. 16-245a, added provision re company to select option in best interest of ratepayers, added provision re reasonable costs recoverable, and made technical changes, effective June 27, 2017; P.A. 18-50 replaced provision re commissioner may select proposals from resources to meet up to 4 per cent of load distributed by state's electric distribution companies with provision re commissioner may select proposals to meet up to 6 per cent of load distributed, effective May 24, 2018; P.A. 25-173 replaced provision re renewable energy certificates issued pursuant to section may be sold or retained with provision requiring certificates be disposed of pursuant to procedures established pursuant to Sec. 16-245a(g).
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Sec. 16a-3i. Determination of adequacy of Class I renewable energy sources. Solicitation re Class I renewable energy sources. Use of large-scale hydropower in renewable portfolio standards. Disposition of renewable energy certificates. (a) During the calendar year commencing January 1, 2014, and continuing each calendar year thereafter, if alternative compliance payments pursuant to subsection (h) of section 16-244c or subsection (k) of section 16-245 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, for electric suppliers or electric distribution companies to comply with the requirements of section 16-245a.
(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 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, 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, operational as of the date that such solicitation is issued. If the commissioner, in consultation with the procurement manager identified in subsection (l) of section 16-2, 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, and in accordance with the policy goals outlined in the Comprehensive Energy Strategy, adopted pursuant to section 16a-3d, the commissioner, in consultation with the procurement manager identified in subsection (l) of section 16-2, may 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 ten years. 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, including costs incurred by the electric distribution companies under the agreement and reasonable costs incurred by the electric distribution companies in connection with the agreement, shall be recovered through a fully reconciling component of electric rates for all customers of electric distribution companies. Certificates issued by the New England Power Pool Generation Information System for any Class I renewable energy source procured by an electric distribution company pursuant to this section shall be disposed of pursuant to the procedures established pursuant to subsection (g) of section 16-245a.
(e) Notwithstanding subdivision (1) of subsection (b) of section 16-245a, 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 October 1, 2023, the commissioner may allow not more than two and one-half percentage points of the Class I renewable portfolio standards established pursuant to section 16-245a effective for the succeeding and subsequent calendar years to be satisfied by large-scale hydropower procured pursuant to section 16a-3g. The requirements applicable to electric suppliers and electric distribution companies pursuant to section 16-245a shall consequently be reduced by not more than two and one-half percentage points 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 on and after October 1, 2023, 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.
(P.A. 13-303, S. 9; P.A. 14-94, S. 35; P.A. 18-50, S. 29; P.A. 22-118, S. 166; P.A. 23-102, S. 37; P.A. 25-173, S. 40.)
History: P.A. 13-303 effective June 5, 2013; P.A. 14-94 amended Subsec. (d) to reword provision re net costs recovered by electric distribution companies pursuant to power purchase agreements, effective June 6, 2014; P.A. 18-50 amended Subsec. (e) by adding “subdivision (1) of” re Sec. 16-245a(b); P.A. 22-118 amended Subsec. (a) to change reference from Subsec. (j) to Subsec. (h); P.A. 23-102 amended Subsec. (e) by changing January 1, 2016, and December 31, 2020, to October 1, 2023, increasing percentage of the Class I renewable portfolio standards that may be satisfied by large-scale hydropower from 1 per cent to 2.5 per cent, and made technical and conforming changes; P.A. 25-173 amended Subsec. (d) to replace provision requiring renewable energy certificates issued pursuant to section be sold in renewable energy credit market with provision requiring certificates be disposed of pursuant to procedures established pursuant to Sec. 16-245a(g).
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Sec. 16a-3j. Regional and independent solicitation re passive demand response, Class I renewable energy sources, Class III sources, large-scale hydropower or natural gas sources. Disposition of renewable energy certificates. (a) In order to secure cost-effective resources to provide more reliable electric service for the benefit of the state's electric ratepayers and to meet the state's energy and environmental goals and policies established in the Integrated Resources Plan, pursuant to section 16a-3a, and the Comprehensive Energy Strategy, pursuant to section 16a-3d, the Commissioner of Energy and Environmental Protection, in consultation with the procurement manager identified in subsection (l) of section 16-2, the Office of Consumer Counsel and the Attorney General, may, in coordination with other states in the control area of the regional independent system operator, as defined in section 16-1, or on behalf of Connecticut alone, issue multiple solicitations for long-term contracts from providers of resources described in subsections (b), (c) and (d) of this section.
(b) In any solicitation for resources to reduce electric demand and improve resiliency and grid reliability in the state, issued pursuant to this subsection, the commissioner shall seek proposals for (1) passive demand response measures, including, but not limited to, energy efficiency, load management, and the state's conservation and load management programs, pursuant to section 16-245m, that are capable, either singly or through aggregation, of reducing electric demand by one megawatt or more; and (2) Class I renewable energy sources and Class III sources, as defined in section 16-1, provided any such project proposal is for a facility that has a nameplate capacity rating of more than two megawatts and less than twenty megawatts. The commissioner may also seek proposals for energy storage systems, as defined in section 16-1, that are capable of storing up to twenty megawatts of energy. Proposals pursuant to this subsection shall not have a contract term exceeding twenty years. Each electric distribution company, as defined in section 16-1, shall, in consultation with the Energy Conservation Management Board established pursuant to section 16-245m, assess whether the submission of a proposal for passive demand response measures is feasible pursuant to any solicitation issued pursuant to subdivision (1) of this subsection, provided such proposal only includes electric demand reductions that are in addition to existing and projected demand reductions obtained through the conservation and load management programs.
(c) In any solicitation issued pursuant to this subsection, the commissioner shall seek proposals from (1) Class I renewable energy sources, as defined in section 16-1, having a nameplate capacity rating of twenty megawatts or more, and any associated transmission; and (2) verifiable large-scale hydropower, as defined in section 16-1, and any associated transmission. The commissioner may also seek proposals for energy storage systems, as defined in section 16-1, having a nameplate capacity rating of twenty megawatts or more. Proposals under this subsection shall not have a contract term exceeding twenty years. In soliciting Class I renewable energy sources, and any associated transmission, pursuant to this subsection, the commissioner may, for the purpose of balancing such Class I energy deliveries and improving the economic viability of such proposals, also seek proposals for electricity and capacity from Class II renewable energy sources, as defined in section 16-1, and existing hydropower resources other than those described under section 16-1, provided such resources are interconnected to such associated transmission and are located in the control area of the regional independent system operator or imported into the control area of the regional independent system operator from resources located in an adjacent regional independent system operator's control area.
(d) In any solicitation for natural gas resources issued pursuant to this subsection, the commissioner shall seek proposals for (1) interstate natural gas transportation capacity, (2) liquefied natural gas, (3) liquefied natural gas storage, and (4) natural gas storage, or a combination of any such resources, provided such proposals provide incremental capacity, gas, or storage that has a firm delivery capability to transport natural gas to natural gas-fired generating facilities located in the control area of the regional independent system operator. Proposals under this subsection shall not have a contract term exceeding a period of twenty years.
(e) The Commissioner of Energy and Environmental Protection, in consultation with the procurement manager identified in subsection (l) of section 16-2, the Office of Consumer Counsel and the Attorney General, shall evaluate project proposals received under any solicitation issued pursuant to subsection (b), (c) or (d) of this section, based on factors including, but not limited to, (1) improvements to the reliability of the electric system, including during winter peak demand; (2) whether the benefits of the proposal outweigh the costs to ratepayers; (3) fuel diversity; (4) the extent to which the proposal contributes to meeting the requirements to reduce greenhouse gas emissions and improve air quality in accordance with sections 16-245a, 22a-174, and 22a-200a; (5) whether the proposal is in the best interest of ratepayers; and (6) whether the proposal is aligned with the policy goals outlined in the Integrated Resources Plan, pursuant to section 16a-3a, and the Comprehensive Energy Strategy, pursuant to section 16a-3d, including, but not limited to, environmental impacts. In conducting such evaluation, the commissioner may also consider the extent to which project proposals provide economic benefits for the state. In evaluating project proposals received under any solicitation issued pursuant to subsection (b), (c) or (d) of this section, the commissioner shall compare the costs and benefits of such proposals relative to the expected or actual costs and benefits of other resources eligible to respond to the other procurements authorized pursuant to this section.
(f) The commissioner may hire consultants with expertise in quantitative modeling of electric and gas markets, and physical gas and electric system modeling, as applicable, to assist in implementing this section, including, but not limited to, the evaluation of proposals submitted pursuant to this section. All reasonable costs, not exceeding one million five hundred thousand dollars, associated with the commissioner's solicitation and review of proposals pursuant to this section shall be recoverable through the nonbypassable federally mandated congestion charge, as defined in subsection (a) of section 16-1. Such costs shall be recoverable even if the commissioner does not select any proposals pursuant to solicitations issued pursuant to this section.
(g) If the commissioner finds proposals received pursuant to this section to be in the best interest of electric ratepayers, in accordance with the provisions of subsection (e) of this section, the commissioner may select any such proposal or proposals, provided the total capacity of the resources selected under all solicitations issued pursuant to this section in the aggregate do not exceed three hundred seventy-five million cubic feet per day of natural gas capacity, or the equivalent megawatts of electricity, electric demand reduction or combination thereof. Any proposals selected pursuant to subsections (b) and (c) of this section shall not, in the aggregate, exceed ten per cent of the load distributed by the state's electric distribution companies. The commissioner may, on behalf of all customers of electric distribution companies, direct the electric distribution companies to enter into long-term contracts for passive demand response measures, electricity, electric capacity, environmental attributes, energy storage, interstate natural gas transportation capacity, liquefied natural gas, liquefied natural gas storage, and natural gas storage, or any combination thereof, from proposals submitted pursuant to this section, provided the benefits of such contracts to customers of electric distribution companies outweigh the costs to such companies' customers.
(h) Any agreement entered into pursuant to this section shall be subject to review and approval by the Public Utilities Regulatory Authority. The electric distribution company shall file an application for the approval of any such agreement with the authority. The authority shall approve such agreement if it is cost effective and in the best interest of electric ratepayers. The authority shall issue a decision not later than ninety days after such filing. If the authority does not issue a decision within ninety days after such filing, the agreement shall be deemed approved. The net costs of any such agreement, including costs incurred by the electric distribution company under the agreement and reasonable costs incurred by the electric distribution company in connection with the agreement, shall be recovered on a timely basis through a fully reconciling component of electric rates for all customers of the electric distribution company. Any net revenues from the sale of products purchased in accordance with long-term contracts entered into pursuant to this section shall be credited to customers through the same fully reconciling rate component for all customers of the contracting electric distribution company. For any contract for interstate natural gas transportation capacity, liquefied natural gas, liquefied natural gas storage or natural gas storage entered into pursuant to this section, the electric distribution company may contract with a gas supply manager to sell such interstate natural gas transportation capacity, liquefied natural gas, liquefied natural gas storage or natural gas storage, or a combination thereof, into the wholesale markets at the best available price in a manner that meets all applicable requirements pursuant to all applicable regulations of the Federal Energy Regulatory Commission.
(i) Certificates issued by the New England Power Pool Generation Information System for any Class I renewable energy source or Class III source procured by an electric distribution company pursuant to this section shall be disposed of pursuant to the procedures established pursuant to subsection (g) of section 16-245a.
(P.A. 15-107, S. 1; P.A. 25-173, S. 47.)
History: P.A. 15-107 effective June 19, 2015; P.A. 25-173 amended Subsec. (i) to replace provision re renewable energy certificates issued pursuant to section may be sold or retained with provision requiring certificates be disposed of pursuant to procedures established pursuant to Sec. 16-245a(g).
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Sec. 16a-3m. Appraisal re nuclear power generating facilities. Solicitation re zero-carbon electricity generating resources. Use of energy in standard service. (a) For the purposes of this section:
(1) “Best interest of ratepayers” means the benefits of a contract or proposal outweigh the costs to electric ratepayers, based on whether the delivered prices of sources included in such contract or proposal are less than the forecasted price of energy and capacity, as determined by the commissioner or the commissioner's designee, and based on a consideration of the following factors, as determined by the commissioner or the commissioner's designee: (A) Impacts on electric system operations and reliability; (B) the extent to which such contract or proposal will contribute to (i) the local sourcing requirement set by the regional independent system operator, as defined in section 16-1, and (ii) meeting the requirements to reduce greenhouse gas emissions and improve air quality in accordance with sections 16-245a, 22a-174 and 22a-200a; (C) fuel diversity; and (D) whether the proposal is aligned with the policy goals outlined in the Integrated Resources Plan developed pursuant to section 16a-3a and the Comprehensive Energy Strategy developed pursuant to section 16a-3d, including, but not limited to, environmental impacts; and
(2) “Eligible nuclear power generating facility” means a nuclear power generating facility that is located in the control area of the regional independent system operator, as defined in section 16-1, and is licensed to operate through January 1, 2030, or later.
(b) The Commissioner of Energy and Environmental Protection and the Public Utilities Regulatory Authority shall (1) conduct an appraisal regarding nuclear power generating facilities in accordance with subsection (c) of this section, and (2) determine whether a solicitation process for nuclear power generating facilities shall be conducted pursuant to subsection (d) of this section. On or before February 1, 2018, the commissioner and the authority shall report, in accordance with section 11-4a, the results of the appraisal and the selection conducted pursuant to subsection (d) of this section to the General Assembly. If the General Assembly does not reject such results by a simple majority vote in each house on or before March 1, 2018, such results shall be deemed approved.
(c) The appraisal conducted pursuant to subdivision (1) of subsection (b) of this section shall assess: (1) The current economic condition of nuclear generating facilities located in the control area of the regional independent system operator, as defined in section 16-1; (2) the projected economic condition of nuclear power generating facilities located in the control area of the regional independent system operator, as defined in section 16-1; (3) the impact on the following considerations if such nuclear power generating facilities retire before July 1, 2027: (A) Electric markets, fuel diversity, energy security and grid reliability, (B) the state's greenhouse gas emissions mandated levels established pursuant to section 22a-200a, and (C) the state, regional and local economy.
(d) After completing the appraisal, if the results of such appraisal demonstrate that action is necessary, the commissioner shall act and may issue one or more solicitations, in consultation with the procurement manager identified in subsection (l) of section 16-2 and the Office of Consumer Counsel established in section 16-2a, for zero-carbon electricity generating resources, including, but not limited to, eligible nuclear power generating facilities, hydropower, Class I renewable energy sources, as defined in section 16-1, and energy storage systems, provided (1) the total annual energy output of any proposals selected, in the aggregate, shall be not more than twelve million megawatt hours of electricity, (2) any agreement entered into pursuant to this subdivision with an eligible nuclear power generating facility or hydropower shall be for a period of not less than three years and not more than ten years, and (3) any agreement entered into pursuant to this subdivision with Class I renewable energy sources, as defined in section 16-1, and energy storage systems shall be for a period of not more than twenty years. On or before May 1, 2018, if the results of such appraisal demonstrate that one or more solicitations pursuant to this subsection are necessary, the commissioner shall initiate such solicitation process pursuant to this subsection, in accordance with subsection (e) of this section, provided any changes made, contracts entered into or agreements entered into are in the best interest of ratepayers.
(e) (1) Any solicitation issued pursuant to subsection (d) of this section for zero-carbon electricity generating resources, including, but not limited to, eligible nuclear power generating facilities, hydropower, Class I renewable energy sources, as defined in section 16-1, and energy storage systems, shall be for resources delivered into the control area of the regional independent system operator, as defined in section 16-1, and any agreement entered into pursuant to subdivision (2) of this subsection shall be in the best interest of ratepayers. If the commissioner finds proposals received pursuant to such solicitations to be in the best interest of ratepayers, the commissioner may select any such proposal or proposals, provided (A) the total annual energy output of any proposals selected, in the aggregate, shall be not more than twelve million megawatt hours of electricity, (B) any agreement entered into pursuant to this subdivision with an eligible nuclear power generating facility or hydropower shall be for a period of not less than three years and not more than ten years, or the contract term selected by at least one other state entering into an agreement pursuant to this subsection if such term is in the best interest of the ratepayers, and (C) any agreement entered into pursuant to this subdivision with Class I renewable energy sources, as defined in section 16-1, and energy storage systems shall be for a period of not more than twenty years.
(2) If the commissioner has made the determination and finding pursuant to subdivision (1) of this subsection, the commissioner shall, on behalf of all customers of electric distribution companies, direct the electric distribution companies to enter into agreements for energy, capacity and any environmental attributes, or any combination thereof, from proposals submitted pursuant to this subdivision.
(3) (A) Any agreement entered into pursuant to subdivision (2) of this subsection shall be subject to review and approval by the Public Utilities Regulatory Authority. The electric distribution company shall file an application for the approval of any such agreement with the authority. The authority's review shall commence upon the filing of the signed power purchase agreement with the authority. The authority shall approve agreements that it determines (i) provide for the delivery of adequate and reliable products and services, for which there is a clear public need, at a just and reasonable price, (ii) are prudent and cost effective, and (iii) that the respondent to the solicitation has the technical, financial and managerial capabilities to perform pursuant to such agreement. For any eligible nuclear power generating facility selected in any solicitation described in subsection (g) of this section, the authority shall require any such agreement to be conditioned upon the approval of such a power purchase agreement or other agreement for energy, capacity and any environmental attributes, or any combination thereof, with such eligible nuclear power generating facility, in at least two other states, by the applicable officials of such states or by electric utilities or other entities designated by the applicable officials of such states. The authority shall issue a decision not later than one hundred eighty days after such filing. If the authority does not issue a decision within one hundred eighty days after such filing, the agreement shall be deemed approved.
(B) Notwithstanding any provision of the general statutes or the procurement plan adopted pursuant to section 16-244m, an electric distribution company may, in consultation with the procurement manager of the Public Utilities Regulatory Authority and the Office of Consumer Counsel, elect to use, for a duration of time established in consultation with the procurement manager, any portion of the energy, capacity and other products, or any combination thereof that such company purchases from an eligible nuclear power generating facility pursuant to an agreement entered into pursuant to this subsection for the provision of standard service by such company if such company, in consultation with the procurement manager and the Office of Consumer Counsel, concludes such usage is in the best interest of standard service customers. An electric distribution company that elects to use such energy, capacity or products in the provision of standard service shall seek approval from the Public Utilities Regulatory Authority to incorporate any such agreement into standard service. The authority may establish reporting standards related to any determination of whether the use of such agreements is in the best interest of standard service customers.
(C) An electric distribution company that elects to use such energy, capacity or products in the provision of standard service shall, in consultation with the authority and the Office of Consumer Counsel, specify the (i) quantity of energy, capacity and any other products such company shall use to serve standard service customers, (ii) duration of such usage, and (iii) price for such energy, capacity and any other products that will be recovered through generation service charges pursuant to section 16-244c.
(D) If any energy, capacity or other products purchased by such company under any such agreement are used to serve standard service customers, the cost of such energy, capacity or other products shall be recovered through generation service charges pursuant to section 16-244c. Any certificates issued by the New England Power Pool Generation Information System for any Class I renewable energy source procured by an electric distribution company pursuant to this section that are not used to serve standard service customers shall be disposed of pursuant to the procedures established pursuant to subsection (g) of section 16-245a.
(E) (i) The remaining costs of any such agreement, including costs incurred by the electric distribution company under the agreement and reasonable costs incurred by the electric distribution company in connection with the agreement, net of all revenues from any sale of energy, capacity or other products purchased under such agreement, including, but not limited to, any revenues recovered pursuant to subparagraph (D) of this subdivision, shall be recovered on a timely basis through a nonbypassable fully reconciling component of electric rates for all customers of the electric distribution company, and (ii) any net revenues from the sale of products purchased in accordance with long-term contracts entered into pursuant to this subsection, or pursuant to any other provision of the general statutes, that are not associated with the provision of standard service, shall be credited to customers through the same nonbypassable fully reconciling rate component for all customers of the contracting electric distribution company.
(F) No provision of this subdivision shall be construed to amend or alter the terms and conditions of any such agreement approved by the authority.
(f) Each person owning and operating a nuclear power generating facility in the state shall pay a pro rata share of all reasonable costs associated with the department's appraisal pursuant to subsection (c) of this section, determination pursuant to subsection (d) of this section, and actions taken pursuant to subsection (e) of this section in an amount not to exceed one million dollars.
(g) Any solicitation issued pursuant to this section on or after July 1, 2024, for eligible nuclear power generating facilities shall be conducted in coordination with two or more other states in the control area of the regional independent system operator, as defined in section 16-1. The commissioner may not direct any electric distribution company to enter into an agreement with an eligible nuclear power generating facility pursuant to this section unless the applicable officials of at least two such states select a proposal for energy, capacity and any environmental attributes, or any combination thereof, from an eligible nuclear power generating facility in response to such coordinated solicitation. The commissioner may revise the appraisal conducted pursuant to subsections (b) and (c) of this section in a manner determined by the commissioner and in furtherance of any such solicitation, at the commissioner's discretion.
(June Sp. Sess. P.A. 17-3, S. 1; P.A. 24-38, S. 1; P.A. 25-173, S. 30.)
History: June Sp. Sess. P.A. 17-3 effective October 31, 2017; P.A. 24-38 amended Subsec. (e)(3) to add provision re agreements be conditioned upon approval in at least 2 other states, added Subsec. (g) re conducting solicitations in coordination with 2 or more other states, and made technical changes, effective May 21, 2024; P.A. 25-173 amended Subsec. (e)(1)(B) by adding provision re contract term selected by at least one other state, amended Subsec. (e)(3) by designating existing provisions re review and approval as Subpara. (A) and redesignating Subparas. (A) to (C) as Subpara. (A)(i) to (iii), adding new Subparas. (B), (C) and (D) re electric distribution company use of energy purchased from nuclear power generating facility to provide standard service and requirements concerning such use of such energy, designating provisions re net costs as Subpara. (E) and substantially amending same and adding Subpara. (F) re no provision shall amend or alter terms and conditions of agreement approved by authority.
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Sec. 16a-3n. Solicitation re energy derived from offshore wind facilities that are Class I renewable energy sources. Disposition of renewable energy certificates. (a)(1) The Commissioner of Energy and Environmental Protection, in consultation with the procurement manager identified in subsection (l) of section 16-2, the Office of Consumer Counsel and the Attorney General, may, in coordination with other states in the control area of the regional independent system operator, as defined in section 16-1, in coordination with states in a neighboring control area or on behalf of Connecticut alone, solicit proposals, in one solicitation or multiple solicitations, from providers of energy derived from offshore wind facilities that are Class I renewable energy sources, as defined in section 16-1, and any associated transmission, provided the commissioner shall initiate a solicitation not later than fourteen days after June 7, 2019, for projects that have a total nameplate capacity rating of up to two thousand megawatts in the aggregate. Any such solicitation or solicitations issued pursuant to this section on and after January 1, 2020, shall be for quantities of energy and within the timing and schedule determined by the commissioner, and may be informed by the Integrated Resources Plan prepared on or before January 1, 2020, pursuant to subsections (b) and (j) of section 16a-3a, provided such schedule shall provide for the solicitation of resources with a nameplate capacity rating of two thousand megawatts in the aggregate by December 31, 2030.
(2) In developing any solicitations pursuant to this section, the commissioner shall include requirements for contract commitments in selected bids that (A) require payment of not less than the prevailing wage, as described in section 31-53, for laborers, workmen and mechanics performing construction activities within the United States with respect to the project, and (B) require selected bidders to engage in a good faith negotiation of a project labor agreement. Any solicitation issued pursuant to this section shall specify the minimum terms that such project labor agreements shall address.
(3) In any solicitation initiated pursuant to this section on or after July 1, 2024, the Commissioner of Energy and Environmental Protection shall include requirements for contract commitments in selected bids that require bidders selected pursuant to subsection (b) of this section, including any providers of associated transmission, when employing or contracting with fishermen for support services such as scouting for fishing gear or serving as a safety vessel in a construction zone, for any project selected by the state or in proportion to the state share of any project selected by multiple states or other entities, to use best efforts to award such contracts or employment to state commercial fishing licensees, all other factors being equal. Such requirements shall include: (A) The maintenance of records that document the use of such best efforts and the filing of a monthly report with the Department of Economic and Community Development that describes such best efforts, on a form prescribed by said department; and (B) a provision that any fishermen that such providers employ or contract with to provide support services shall: (i) Meet training and certification standards described in the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, as amended from time to time; and (ii) prior to providing any such support services, undergo inspection in accordance with the International Marine Contractors Association's marine inspection for small workboats inspection document. The Coast Guard or any inspector accredited through the accredited vessel inspector program operated by the Marine Surveying Academy of the International Institute of Marine Surveying or the United States National Association of Marine Surveyors may conduct such an inspection.
(4) (A) In responding to any solicitations issued pursuant to this section, a bidder shall include an environmental and fisheries mitigation plan for the construction and operation of such offshore wind facilities, provided such plan shall include, but not be limited to, an explicit description of the best management practices the bidder will employ that are informed by the latest science at the time the proposal is made that will avoid, minimize and mitigate any impacts to wildlife, natural resources, ecosystems and traditional or existing water-dependent uses, including, but not limited to, commercial fishing.
(B) In responding to any solicitations issued pursuant to this section, a bidder may include such bidder's plans for the use of skilled labor, including, but not limited to, for any construction and manufacturing components of the proposal including any outreach, hiring and referral systems, or any combination thereof, that are affiliated with an apprenticeship training program registered with the Labor Department pursuant to section 31-22r.
(C) In responding to any solicitations issued pursuant to this section in calendar year 2019, each bidder shall submit at least one proposal for resources eligible pursuant to this section with a nameplate capacity rating of four hundred megawatts. The commissioner may not consider or select any proposals from a bidder that does not submit at least one proposal for resources with a nameplate capacity of four hundred megawatts for any solicitation issued pursuant to this section in calendar year 2019.
(5) For each solicitation issued pursuant to this section, the commissioner shall establish a commission on environmental standards to provide input on best practices for avoiding, minimizing and mitigating any impacts to wildlife, natural resources, ecosystems and traditional or existing water-dependent uses, including, but not limited to, commercial fishing, during the construction and operation of facilities eligible pursuant to this section.
(b) In making any selection of such proposals, the commissioner shall consider factors, including, but not limited to, (1) whether the proposal is in the best interest of ratepayers, including, but not limited to, the delivered price of such sources, (2) whether the proposal promotes electric distribution system reliability, including during winter peak demand, (3) any positive impacts on the state's economic development, (4) whether the proposal is consistent with the requirements to reduce greenhouse gas emissions in accordance with section 22a-200a, (5) whether the proposal is consistent with the policy goals outlined in the Comprehensive Energy Strategy adopted pursuant to section 16a-3d and the Integrated Resources Plan adopted pursuant to section 16a-3a, (6) whether the proposal is consistent with the goals and policies set forth in sections 22a-92 and 25-157t, and (7) whether the proposal uses practices to avoid, minimize and mitigate impacts to wildlife, natural resources, ecosystems and traditional or existing water-dependent uses, including, but not limited to, commercial fishing. In considering whether a proposal has any positive impacts on the state's economic development, the commissioner shall consult with the Commissioner of Economic and Community Development. The commissioner may select proposals from such resources that have a total nameplate capacity rating of not more than two thousand megawatts in the aggregate.
(c) The commissioner may direct the electric distribution companies to enter into power purchase agreements for energy, capacity, any transmission associated with such energy derived from offshore wind facilities that are Class I renewable energy sources as defined in section 16-1, and environmental attributes, or any combination thereof, for periods of not more than twenty years on behalf of all customers of the state's electric distribution companies, except the commissioner may direct such companies to enter into such agreements for periods greater than twenty years and not more than thirty years if the commissioner conducts the solicitation pursuant to subsection (a) of this section in coordination with one or more states and, in response to such coordinated solicitation, the applicable officials of any such state select a proposal for energy, capacity and any environmental attributes, or any combination thereof, from such facilities for a period that is greater than twenty years and not more than thirty years. Certificates issued by the New England Power Pool Generation Information System for any Class I renewable energy sources procured by an electric distribution company pursuant to this section shall be disposed of pursuant to the procedures established pursuant to subsection (g) of section 16-245a.
(d) Any agreement entered into pursuant to this section shall be subject to review and approval by the Public Utilities Regulatory Authority, which review shall be completed not later than (1) ninety days after the date on which such agreement is filed with the authority for any solicitation issued pursuant to this section in calendar year 2019, and (2) one hundred twenty days for any solicitation issued pursuant to this section on and after January 1, 2020. The authority shall approve agreements that it determines (A) provide for the delivery of adequate and reliable products and services, for which there is a clear public need, at a just and reasonable price, (B) are prudent and cost effective, and (C) are between an electric distribution company and a respondent to the solicitation that has the technical, financial and managerial capabilities to perform pursuant to such agreement. The net costs of any such agreement, including costs incurred by the electric distribution companies under the agreement and reasonable costs incurred by the electric distribution companies in connection with the agreement, shall be recovered through a fully reconciling component of electric rates for all customers of electric distribution companies. Any net revenues from the sale of products purchased in accordance with long-term contracts entered into pursuant to this section shall be credited to customers through the same fully reconciling rate component for all customers of the contracting electric distribution company. The commissioner may hire consultants with expertise in quantitative modeling of electric and gas markets to assist in implementing this section, including, but not limited to, the evaluation of proposals submitted pursuant to this section. All reasonable costs associated with the commissioner's solicitation and review of proposals pursuant to this section shall be recoverable through the same fully reconciling rate component for all customers of the electric distribution companies.
(P.A. 19-71, S. 1; P.A. 21-141, S. 11; P.A. 24-38, S. 2; P.A. 25-173, S. 41, 48.)
History: P.A. 19-71 effective June 7, 2019; P.A. 21-141 replaced “Connecticut State Apprenticeship Council established pursuant to section 31-22n” with “Labor Department pursuant to section 31-22r”; P.A. 24-38 amended Subsec. (a) by adding new Subdiv. (3) re requirements when employing or contracting with fishermen for support services and redesignating existing Subdivs. (3) and (4) as Subdivs. (4) and (5) and amended Subsec. (c) by adding exception re agreements for periods greater than 20 years and not more than 30 years, effective May 21, 2024; (Revisor's note: In 2025, a reference to “the effective date of this section” in Subsec. (a)(1) was changed editorially by the Revisors to “June 7, 2019,” for accuracy); P.A. 25-173 amended Subsec. (a)(3) to allow vessel inspections conducted by United States National Association of Marine Surveyors, and amended Subsec. (c) to replace provision re renewable energy certificates issued pursuant to section may be sold or retained with provision requiring certificates be disposed of pursuant to procedures established pursuant to Sec. 16-245a(g).
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Sec. 16a-3p. Solicitation re energy derived from anaerobic digestion. Disposition of renewable energy certificates. (a)(1) The Commissioner of Energy and Environmental Protection, in consultation with the procurement manager identified in subsection (l) of section 16-2, the Office of Consumer Counsel and the Attorney General, may solicit proposals, in one solicitation or multiple solicitations, from providers of energy derived from anaerobic digestion.
(2) In responding to any solicitations issued pursuant to this section, a bidder shall submit a proposal or proposals for facilities that are animal feeding operations and collocated on land used for the purpose of farming, as defined in subsection (q) of section 1-1. For purposes of this subsection, “animal feeding operation” has the same meaning as provided in section 22a-208cc.
(b) 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, and in accordance with the policy goals outlined in the Comprehensive Energy Strategy, adopted pursuant to section 16a-3d, and in accordance with the policy goals outlined in the state-wide solid waste management plan developed pursuant to section 22a-241a, the commissioner may select proposals from such resources that have a total nameplate capacity rating of not more than ten megawatts in the aggregate. The commissioner may, on behalf of all customers of electric distribution companies, 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.
(c) Certificates issued by the New England Power Pool Generation Information System procured by an electric distribution company pursuant to this section shall be disposed of pursuant to the procedures established pursuant to subsection (g) of section 16-245a.
(d) 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 sixty days after such filing. In the event the authority does not issue a decision within sixty days after such agreement is filed with the authority, the agreement shall be deemed approved.
(e) The net costs of any such agreement, including costs incurred by the electric distribution company under the agreement and reasonable costs incurred by the electric distribution company in connection with the agreement, shall be recovered on a timely basis through a fully reconciling component of electric rates for all customers of the electric distribution company. Any net revenues from the sale of products purchased in accordance with long-term contracts entered into pursuant to this section shall be credited to customers through the same fully reconciling rate component for all customers of the contracting electric distribution company. The commissioner may hire consultants with expertise in quantitative modeling of electric and gas markets to assist in implementing this section, including, but not limited to, the evaluation of proposals submitted pursuant to this section. All reasonable costs associated with the commissioner's solicitation and review of proposals pursuant to this section shall be recoverable through the same fully reconciling rate component for all customers of the electric distribution companies.
(P.A. 19-35, S. 17; P.A. 25-173, S. 42.)
History: P.A. 19-35 effective June 28, 2019; P.A. 25-173 amended Subsec. (c) to replace provision re renewable energy certificates issued pursuant to section may be sold or retained with provision requiring certificates be disposed of pursuant to procedures established pursuant to Sec. 16-245a(g).
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Sec. 16a-3u. Additional power purchase agreements re biomass facilities. (a) For the purposes of this section:
(1) “Existing biomass power purchase agreement” means a power purchase agreement that: (A) (i) Was entered into by a biomass facility that uses sustainable biomass fuel and has an average emission rate of less than or equal to .075 pounds of nitrogen oxides per million BTU of heat input for the previous calendar quarter, or energy derived from a biomass facility with a capacity of less than five hundred kilowatts that began construction before July 1, 2003, with an electric distribution company in the state on or before June 5, 2013, or (ii) was executed in accordance with a solicitation pursuant to section 16a-3f or 16a-3h; and (B) was in effect as of January 1, 2024.
(2) “Eligible biomass facility” means a biomass facility that uses sustainable biomass fuel and has an average emission rate of less than or equal to .075 pounds of nitrogen oxides per million BTU of heat input for the previous calendar quarter, or energy derived from a biomass facility with a capacity of less than five hundred kilowatts that began construction before July 1, 2003, and that has entered into one or more existing biomass power purchase agreements.
(3) “Additional biomass power purchase agreement” means a biomass power purchase agreement that is entered into by an eligible biomass facility and an electric distribution company pursuant to subdivision (b) of this section, for such facility's energy, capacity and environmental attributes, or any combination of such energy and attributes.
(4) “Electric distribution company” and “electric supplier” have the same meanings as provided in section 16-1.
(b) Not later than September 1, 2025, the Commissioner of Energy and Environmental Protection shall initiate a proceeding to solicit proposals, in consultation with the procurement manager identified in subsection (l) of section 16-2, and the Office of Consumer Counsel, in one solicitation or multiple solicitations, for energy and environmental attributes from eligible biomass facilities. The Commissioner of Energy and Environmental Protection may direct any electric distribution company to enter into one or more additional biomass power purchase agreements with any eligible biomass facility, provided any such agreement considers the costs to operate such facility, is in the best interest of ratepayers and supports the state's solid waste management plan pursuant to section 22a-228. Any such additional power purchase agreement shall begin upon the termination of the applicable existing biomass power purchase agreements, and shall not exceed a period of ten years.
(c) Any additional biomass power purchase agreement entered into pursuant to subsection (b) of this section shall be subject to review and approval by the Public Utilities Regulatory Authority. Such electric distribution company shall file an application for the approval of any such additional biomass power purchase agreement with the authority. The authority shall issue a decision not later than one hundred eighty days after any such filing. If the authority does not issue a decision within one hundred eighty days after such filing, such additional biomass power purchase agreement shall be deemed approved.
(d) The net costs of any such agreement, including costs incurred by the electric distribution companies under the agreement and reasonable costs incurred by any electric distribution company in connection with the agreement, shall be recovered through a fully reconciling component of electric rates for all customers of such electric distribution company.
(P.A. 24-38, S. 6; P.A. 25-173, S. 44.)
History: P.A. 24-38 effective May 21, 2024; P.A. 25-173 amended Subsec. (a) by redefining “existing biomass power purchase agreement”, “eligible biomass facility” and “additional biomass power purchase agreement” in Subdivs. (1) to (3) and deleting “Class I renewable energy source” from Subdiv. (4) and substantially amended Subsec. (b),effective July 1, 2025.
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Sec. 16a-3v. Electric system efficiency goals. System load factor growth. (a) For the purposes of this section, “system load factor” means the average load in megawatts on an electric distribution company's system divided by the peak load in megawatts on such system.
(b) To reduce structural inefficiencies in the electric transmission and distribution systems in the state and improve the affordability of electricity for ratepayers, it shall be the goal of the state to maximize the efficiency and utilization of such systems and to ensure that any programs funded by ratepayers are cost-effective and focused on affordability, reliability and decarbonization. To achieve the goals set forth in this section, the state shall seek to (1) improve electric system utilization by improving the system load factor, (2) analyze customer usage patterns and the efficacy of investments in electrification projects and grid-scale electricity storage projects, (3) develop and implement policies and incentives to encourage the dispatch of energy generated by distributed solar photovoltaic systems installed behind customer electric meters, and (4) study and report on methods to promote business growth in the state through electric load growing energy policies. The implementation of such goals shall be consistent with the emission reduction goals set forth in section 22a-200a.
(c) The Public Utilities Regulatory Authority, through programs administered by the authority and the regulation of electric distribution companies in the state, may establish specific goals and metrics aligned with the electric system efficiency goal specified in subsection (b) of this section. Programs administered by the authority to meet such goal may include, but need not be limited to, incentives for the dispatch of energy generated by distributed solar photovoltaic systems installed behind customer electric meters for the purpose of increasing the system load factor. For any program implemented under this section, the benefits to ratepayers shall exceed the costs to ratepayers.
(d) The Commissioner of Energy and Environmental Protection may establish specific goals and metrics aligned with the electric system efficiency goal specified in subsection (b) of this section through the approval of the Integrated Resources Plan pursuant to section 16a-3a, and may establish programs, within available appropriations and authority, to promote load factor growth. Such programs may include, but need not be limited to, investments in electrification projects and grid-scale electricity storage projects. For any program implemented under this section, the benefits to ratepayers shall exceed the costs to ratepayers.
(e) The commissioner shall allocate staff within the energy bureau of the Department of Energy and Environmental Protection for the purpose of (1) analyzing customer usage patterns and the efficacy of investments in electrification projects and grid-scale electricity storage projects, (2) studying and reporting on methods to promote business growth in the state through electric load growing energy policies, and (3) long-term planning concerning the development of a more efficient, cost-effective electric system that actively aligns procurement, grid operations and customer usage behavior to reduce ratepayer costs and improve electric system efficiency.
(f) Not later than April 1, 2026, and annually thereafter through April 1, 2041, the Commissioner of Energy and Environmental Protection, in coordination with the Public Utilities Regulatory Authority, shall report on (1) the annual load factor and daily load factors for the prior calendar year for each electric distribution company, (2) any policies and strategies adopted through an authority proceeding to promote the achievement of the system efficiency goal established in subsection (b) of this section, including the costs and benefits of any program implemented pursuant to this section, and (3) any cost-effective policies or programs the legislature may adopt to promote the achievement of such system efficiency goal. The commissioner may consult with, and request data from, the electric distribution companies to assist in the preparation of such report. The commissioner shall submit such report, in accordance with the provisions of section 11-4a to the joint standing committee of the General Assembly having cognizance of matters related to energy and technology.
(P.A. 25-173, S. 56.)
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Sec. 16a-14g. Thermal energy network grant and loan program. (a) As used in this section:
(1) “Gas company”, “electric distribution company” and “participating municipal electric utility” have the same meanings as provided in section 16-1;
(2) “Regional council of governments” means a regional council of governments organized under the provisions of sections 4-124i to 4-124p, inclusive;
(3) “Thermal energy” means heating, or heating and cooling, derived from (A) sources that do not emit greenhouse gases, or (B) geothermal energy; and
(4) “Thermal energy network” means all real estate, fixtures and personal property operated, owned and used or to be used for, or in connection with or to facilitate, a utility-scale distribution infrastructure project that supplies thermal energy in the form of piped noncombustible fluids used for transferring heat into and out of buildings for any type of heating and cooling process, including, but not limited to, comfort heating and cooling, domestic hot water and refrigeration.
(b) The Commissioner of Energy and Environmental Protection shall, within available appropriations, establish a thermal energy network grant and loan program to support the development of thermal energy network projects on the customer's side of the meter. The commissioner shall develop and issue a request for proposals from eligible recipients that shall include, but need not be limited to, any local or regional governmental entity, municipal corporation, regional council of governments, public authority, state and federally recognized tribe, electric distribution company, gas company, participating municipal electric utility, energy improvement district and nonprofit, academic and private entity seeking to develop a thermal energy network. Any such eligible recipient may collaborate with any other such eligible recipient in submitting such proposal.
(c) The commissioner may award grants or loans under the thermal energy network grant and loan program to any number of eligible recipients. Such grants and loans may provide: (1) Assistance with community planning that includes, but is not limited to, thermal energy network project feasibility, including benefit-cost analyses, (2) assistance to recipients for the cost of design, engineering services and infrastructure for any such thermal energy network project, or (3) nonfederal cost share for grant or loan applications for projects or programs that include thermal energy networks. The commissioner may establish any financing mechanism to provide or leverage additional funding to support the development of thermal energy network projects. To be eligible for the award of a grant or loan under this section, an eligible recipient shall demonstrate, to the satisfaction of the commissioner, that such recipient has adopted wage standards conforming with the requirements of section 31-53.
(d) Not later than January first, annually, for a period of three years after receiving a grant or loan under the thermal energy network grant and loan program, the recipient of such grant or loan shall submit a report to the Public Utilities Regulatory Authority, the Office of Consumer Counsel and the Commissioner of Energy and Environmental Protection and, 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 and technology. Such report shall include information concerning the status of such recipient's thermal energy network project.
(P.A. 25-173, S. 32.)
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