renewable energy policy game changers · renewable energy policy game changers: 2013 legislative...

Renewable Energy Policy Game

Changers: 2013 Legislative Update

CBIA Environmental & Energy

2013 Conference

Paul R. Michaud, Esq.

860-240-6131 | [email protected]

June 19, 2013

Key Provisions

1. Property Tax Exemption (S.B. 203) (P.A. 13-61 S. 1)

2. Renewable Energy Facility RFPs (S.B. 1138 S. 6, 7

and 8)

3. Virtual Net Metering (H.B. 6360 S. 35)

4. Submetering (H.B. 6360 S. 36)

5. Microgrids and Rights of Way (H.B. 6360 S. 34, 39 and

40)

6. CHP Program (H.B. 6360 S. 59)

Property Tax Exemption –

• For Systems Installed Between January 1, 2010 and

December 31, 2013:

Class I, Class II hydropower or solar thermal

Behind the commercial or industrial customer meter

Nameplate capacity does not exceed the location’s load

Local municipality may opt to abate up to 100% of the property

taxes

Property Tax Exemption – continued

“New Haven Rule”

• For Systems Installed On or After January 1, 2010




Distressed municipality – pop. 125,000 to 135,000

Property Tax Exemption – 100%

Property Tax Exemption – continued

• For Systems Installed On or After January 1, 2014:




Property tax exemption – 100%

The term “installed” not defined in the statute

New Class I Renewable Energy

Facilities RFP

• For Class I Facilities constructed on or after January 1, 2013

• State solicitation for new Class I facilities allowed if:

In the ratepayers’ interest; and

Consistent with State policy goals in the Comprehensive Energy

Strategy

• Up to 4% of the power that is distributed by the utilities to their

standard offer customers may be procured

• Up to 20-year “bundled” bilateral contract

• All contracts must be reviewed and approved by the Public Utilities

Regulatory Authority

Existing Class I and Large-

Scale Hydropower RFP

• State solicitation for Class I facilities or large scale

hydropower is allowed if:

In the ratepayers’ interest;

Consistent with State policy goals in the Comprehensive Energy

Strategy; and

In accordance with the State’s energy policy goals

• Up to 5% of the power that is distributed by the utilities to

their standard offer customers may be procured

Existing Class I and Large

Scale Hydropower RFP- continued

• Class I Facilities:

The facility must have been constructed before January 1, 2013

Up to a 20-year “bundled” bilateral contract

All contracts must be reviewed and approved by the Public Utilities Regulatory

Authority

• Large Scale Hydropower:

The facility must have been operational on or after January 1, 2003

The facility must be located in New Brunswick, New England, New York,

Quebec, Labrador or Newfoundland

The facility must be able to deliver power to the NEPOOL GIS

The facility must be greater than 30 MW

Up to a 15-year “bundled” bilateral contract

All contracts must be reviewed and approved by the Public Utilities Regulatory

Authority

Run-of-the-River Hydropower,

Landfill Gas and Biomass RFP

• Starting on or after October 1, 2013

• DEEP may issue a request for proposals (RFP) for run-

of-the-river hydropower, landfill methane gas and

biomass projects

• Up to 4% of the distribution company’s load

• 10-year “bundled” bilateral contracts with the distribution

companies

• All contracts must be reviewed and approved by the

Public Utilities Regulatory Authority

Run-of-the-River Hydropower,

Landfill Gas and Biomass RFP -continued

• Project Proposal Eligibility Criteria:

Ratepayers’ interest

Facility’s emissions profile

RECs already received by the facility

Economic development benefits

Consistent with:

• State’s policy goals in Comprehensive Energy Strategy

• State’s greenhouse gas emissions reduction goals

Virtual Net Metering

• Applies to municipalities, State & agricultural customer hosts

• VNM facilities can be sized up to 3 MW

• Customer host account aggregation allowed

• VNM facility must be at the agricultural host Site = yes

• VNM facility must be at the State and municipality host site = maybe

not

• $10,000,000 VNM money cap (annual)

No more than 40% of the cap can go to any municipal, state agency or

agricultural customer host in the aggregate.

Virtual Net Metering – continued

• Virtual Net Metering Bill Credit

Generation Service Charge (GSC)

• 100% allocation based on energy produced by the renewable

energy system

Distribution & Transmission Charges (D&T)

• 80% allocation until July 1, 2014

• 60% allocation from July 2, 2014 through July 1, 2015

• 40% allocation starting on and after July 2, 2015


Host

Fire Station200 kW

Town Library50 kW

Police Station200 kW

Middle School600 kW

Town Hall50 kW

High School900 kW

Customer Host:

- High School

Beneficial Accounts:

- Town Hall

- Fire Station

- Town Library

- Policy Station

- Middle School

2,000 kW solar array


• Municipal & State Customer Hosts:

VNM facility can be a Class I Renewable Resource

VNM facility can be a Class III Renewable Resource

(cogeneration)

Customer host can own, lease or enter into a long-term contract

(Power Purchase Agreement) for the VNM facility

Generally, customer hosts can serve up to 5 beneficial accounts

• Microgrid exception:

– Customer Host can serve an additional 5 non-municipal and non-state

“critical facility” accounts if connected to the microgrid


• Agricultural Customer Hosts:

VNM facility can be a Class I Resource

VNM facility can not be a Class III Renewable Resource

Customer must own the VNM Facility

Customer host can serve up to 10 beneficial accounts, including:

• Agricultural accounts;

• Municipal accounts; and

• Non-commercial “critical facilities” connected to microgrid

Submetering – background

• What is submetering?

• Submetering has been traditionally allowed only at

campgrounds and slips at marinas

• Why submeter?

Getting behind one meter instead of dozens (e.g. large

apartment buildings)

Holds end users financially accountable for their usage

• Contrast Master Metering

New Submetering Rules

• Submetering is now allowed for Commercial Buildings,

Industrial Buildings, Multi-Family Residential, and Mixed-

Use buildings where the electric power or thermal energy

is provided by a Class I renewable source

• Each submetering project must be approved by the

Public Utilities Regulatory Authority (PURA)

• Each submetering entity must provide electricity

produced by the Class I facility to customers at a rate no

greater than the rate charged to the customer class from

the service territory where the facility is located

Microgrids & Rights of Way

• Energy Improvement Districts can now own, lease, or finance

microgrids (but see public street issues below)

• Public Utilities Regulatory Authority must authorize an entity to

independently distribute electricity across a public highway or

street if:

The entity is a municipality, state or federal government;

The entity owns, leases or operates the energy source;

The energy source is connected to a microgrid;

Class I and Class III energy sources can be any size; Other

energy sources can be under 5 MW; and

The energy source meets applicable interconnection standards

CHP Program

• DEEP Pilot Program for CHP (cogeneration) Systems (20 MW)

• Eliminates the Demand Charge Ratchet imposed by the utilities as a result

of System outages for 10 years

• Eligibility:

CHP System must provide electricity and heat to a commercial,

industrial or residential facility;

CHP System must have a nameplate capacity of between 500 kW and 5

MW; and

CHP System must have been placed into service between January 1,

2012 and January 1, 2015

CHP System must not be eligible for CEFIA’s Pilot CHP funding

program

CHP Program Details

• Exemption from distribution demand charges

No ratchet

Pro rate demand charges for outages greater than 3

hours

• Data reporting obligations during pilot

• PURA to evaluate expansion to all CHP

Thank You!

Questions?

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