2014 – S 2440
Enacted 05/29/14
A N A C T
RELATING TO PUBLIC UTILITIES AND CARRIERS - CONTRACTING STANDARD FOR RENEWABLE ENERGY
Introduced By: Senator William A.Walaska
Date Introduced: February 27, 2014
It is enacted by the General Assembly as follows:
SECTION 1. Section 39-26.1-3 of the General Laws in Chapter 39-26.1 entitled "Long-Term Contracting Standard for Renewable Energy" is hereby amended to read as follows:
39-26.1-3. Long-term contract standard. -- (a)
Beginning on or before July 1, 2010, each electric-distribution company
shall be required to annually solicit proposals from renewable energy
developers and, provided commercially reasonable proposals have been received,
enter into long-term contracts with terms of up to fifteen (15) years for the
purchase of capacity, energy, and attributes from newly developed,
renewable-energy resources. Subject to commission approval, the electric-distribution
company may enter into contracts for term lengths longer than fifteen (15)
years. Notwithstanding any other provisions of this chapter, on or before
August 15, 2009, the electric-distribution company shall solicit
proposals for one newly developed renewable-energy-resources
project as required in section §39-26.1-7. Proposals for the sale
of output from an offshore-wind project received under the provisions of
this section shall be diligently and fully considered without prejudice,
regardless of the status of any proceedings under sections §§39-26.1-7
or 39-26.1-8.
(b) The timetable and method for
solicitation and execution of such contracts shall be proposed by the electric-distribution
company, and shall be subject to review and approval by the commission
prior to issuance by the company; provided that the timetable is reasonably
designed to result in the electric distribution company having the minimum
long-term contract capacity under contract within four (4) years of the date of
the first solicitation; it is not necessary that the projects associated with
these contracts be operational within these four (4) years, as the operational
dates shall be specified in the contract. The electric-distribution
company shall, subject to review and approval of the commission, select a
reasonable method of soliciting proposals from renewable-energy
developers, which shall include, at a minimum, an annual public solicitation,
but may also include individual negotiations. The solicitation process shall
permit a reasonable amount of negotiating discretion for the parties to engage
in commercially reasonable, arms-length negotiations over final contract
terms. Each long-term contract entered into pursuant to this section shall
contain a condition that it shall not be effective without commission review
and approval. The electric-distribution company shall file such contract,
along with a justification for its decision, within a reasonable time after it
has executed the contract following a solicitation or negotiation. The
commission shall hold public hearings to review the contract within forty-five (45) days of the filing and
issue a written order approving or rejecting the contract within sixty (60) days ninety
(90) days of the filing;. iIn rejecting
a contract, the commission may advise the parties of the reason for the
contract being rejected and direct the parties to attempt to address the
reasons for rejection in a revised contract within a specified period not to
exceed ninety (90) days. The commission shall approve the contract if it
determines that: (1) tThe contract is commercially reasonable;
(2) tThe requirements for the annual solicitation have been met;
and (3) tThe contract is consistent with the purposes of this
chapter. A report on each solicitation shall be filed with the commission each
year within a reasonable time after decisions are made by the electric
distribution company regarding the solicitation results, even if no contracts
are executed following the solicitation.
(c) (1) No electric distribution
company shall be obligated to enter into long-term contracts for newly
developed renewable energy resources on terms which the electric-
distribution company reasonably believes to be commercially unreasonable;
provided, however, if there is a dispute about whether these terms are
commercially unreasonable, the commission shall make the final determination
after an evidentiary hearing. The electric-distribution company shall
not be obligated to enter into long-term contracts pursuant to this section
that would, in the aggregate, exceed the minimum long-term contract capacity,
but may do so voluntarily subject to commission approval. As long as the
electric-distribution company has entered into long-term contracts in
compliance with this section, the electric-distribution company shall
not be required by regulation or order to enter into power-purchase
contracts with renewable-generation projects for power, renewable-energy
certificates, or any other attributes with terms of more than three (3) years
in meeting its applicable annual renewable portfolio standard requirements set
forth in section §39-26-4 or pursuant to any other provision of
the law.
(2) Except as provided in section
§§39-26.1-7 and 39-26.1-8, an electric distribution company shall not be
required to enter into long-term contracts for newly developed renewable energy
resources that exceed the following five (5) year phased schedule:
By December 30, 2010: Twenty-five percent (25%) of the minimum, long-term contract capacity;
By December 30, 2011: Fifty percent (50%) of the minimum, long-term contract capacity;
By December 30, 2012: Seventy-five percent (75%) of the minimum, long-term contract capacity;
By December 30, 2014: One hundred percent (100%) of the minimum, long-term contract capacity; but may do so earlier voluntarily, subject to commission approval.
(d) Compliance with the long-term contract standard shall be demonstrated through procurement pursuant to the provisions of a long-term contract of energy, capacity, and attributes reflected in NE-GIS certificates relating to generating units certified by the commission as using newly developed renewable-energy resources, as evidenced by reports issued by the NE-GIS administrator and the terms of the contract; provided, however, that the NE-GIS certificates were procured pursuant to the provisions of a long-term contract. The electric-distribution company also may purchase other attributes from the generator as part of the long-term contract.
(e) After the adoption of the rules and regulations promulgated by the commission pursuant to this chapter, an electric-distribution company may, at its sole election, immediately and from time to time, procure additional, commercially reasonable long-term contracts for newly developed renewable-energy resources on an earlier timetable or above the minimum long-term contract capacity, subject to commission approval.
SECTION 2. This act shall take effect upon passage.
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LC004258
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