Sec. 16a-3a. Integrated Resources Plan re energy resource procurement.
Sec. 16a-3o. Study of the value of distributed energy resources.
Sec. 16a-3p. Solicitation re energy derived from anaerobic digestion.
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, 2019, the department shall determine (1) the quantity of energy the Commissioner of Energy and Environmental Protection may seek in any solicitation or solicitations of proposals initiated on or after January 1, 2020, pursuant to section 16a-3n, provided the quantity of energy sought in any such solicitations in the aggregate shall be from resources that have a total nameplate capacity rating of not more than two thousand megawatts in the aggregate, less any energy purchased pursuant to section 16a-3n on or before December 31, 2019; and (2) the timing and schedule of any solicitation or solicitations of proposals initiated on or after January 1, 2020, pursuant to section 16a-3n, provided such schedule shall provide for the solicitation of resources with a nameplate capacity rating of two thousand megawatts in the aggregate, less any energy purchased pursuant to section 16a-3n on or before December 31, 2019, by December 31, 2030. Such determinations 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.)
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.
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Sec. 16a-3n. Solicitation re energy derived from offshore wind facilities that are Class I renewable energy sources. (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 the effective date of this section 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) (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 Connecticut State Apprenticeship Council established pursuant to section 31-22n.
(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.
(4) 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. 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 may be: (1) Sold into 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, provided the revenues from such sale are credited to electric distribution company customers as described in this section; or (2) retained by the electric distribution company to meet the requirements of section 16-245a. In considering whether to sell or retain such certificates, the company shall select the option that is in the best interest of such company's ratepayers.
(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.)
History: P.A. 19-71 effective June 7, 2019.
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Sec. 16a-3o. Study of the value of distributed energy resources. On or before July 1, 2019, the Department of Energy and Environmental Protection and the Public Utilities Regulatory Authority shall initiate a proceeding to jointly study the value of distributed energy resources. On or before July 1, 2020, the department and the authority shall jointly report the findings of such study, 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.
(P.A. 19-35, S. 6.)
History: P.A. 19-35 effective June 28, 2019.
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Sec. 16a-3p. Solicitation re energy derived from anaerobic digestion. (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 may be: (1) Sold into 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, provided the revenues from such sale are credited to electric distribution company customers as described in this section; or (2) retained by the electric distribution company to meet the requirements of section 16-245a. In considering whether to sell or retain such certificates, the company shall select the option that is in the best interest of such company's ratepayers.
(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.)
History: P.A. 19-35 effective June 28, 2019.
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Sec. 16a-4e. Department of Transportation screening and inventory of land. Department of Energy and Environmental Protection analysis of inventoried land and selection preference in solicitations issued. (a) As used in this section, “Class I renewable energy source” has the same meaning as provided in section 16-1.
(b) (1) On or before December 1, 2020, the Department of Transportation shall conduct a preliminary screening of land owned by said department. Such screening shall identify any such land that may be suitable for the siting of Class I renewable energy sources and shall evaluate the suitability of such land. Said department shall submit an inventory of any such land said department determines is suitable for the siting of Class I renewable energy sources to the Department of Energy and Environmental Protection.
(2) The Department of Energy and Environmental Protection shall conduct an analysis of any land included in the inventory submitted to said department pursuant to subdivision (1) of this subsection. Said department's analysis shall include, but not be limited to, a technical, legal and financial feasibility analysis and shall consider (A) setback requirements, (B) access to the land, (C) physical and environmental characteristics of the land, (D) the development characteristics of a Class I renewable energy source, (E) current and future transportation needs, (F) the eligibility of Class I renewable energy sources that may be installed on the land to participate in net metering pursuant to section 16-243h, virtual net metering pursuant to section 16-244u, renewable energy tariffs pursuant to section 16-244z and grid-scale solicitation programs pursuant to this title, and (G) other relevant feasibility factors.
(c) In any solicitation issued by the Department of Energy and Environmental Protection for Class I renewable energy sources after said department completes the analysis pursuant to subdivision (2) of subsection (b) of this section, said department may provide selection preference to proposals that use land that is (1) included on the inventory submitted pursuant to subdivision (1) of subsection (b) of this section, and (2) determined to be feasible for the siting of Class I renewable energy sources by said department pursuant to the analysis conducted pursuant to subdivision (2) of subsection (b) of this section.
(P.A. 19-35, S. 8.)
History: P.A. 19-35 effective June 28, 2019.
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