Chapter 056 |
2017 -- H 5274 SUBSTITUTE A Enacted 06/27/2017 |
A N A C T |
RELATING TO PUBLIC UTILITIES AND CARRIERS -- RENEWABLE ENERGY GROWTH PROGRAM |
Introduced By: Representatives Ruggiero, Handy, Regunberg, Tanzi, and O`Grady |
Date Introduced: January 27, 2017 |
It is enacted by the General Assembly as follows: |
SECTION 1. Section 39-26.6-12 of the General Laws in Chapter 39-26.6 entitled "The |
Renewable Energy Growth Program" is hereby amended to read as follows: |
39-26.6-12. Annual bidding and enrollments. |
(a) With the exception of the first program year (2015), the electric-distribution company, |
in consultation with the board and office, shall conduct at least three (3) tariff enrollments for |
each distributed-generation class each program year. For the first program year, the board may |
recommend that either two (2) or three (3) enrollments be conducted. |
(b) During each program year, the tariff enrollments shall have both an annual targeted |
amount of nameplate megawatts ("annual MW target") and a nameplate megawatt target for each |
separate enrollment event ("enrollment MW target"). The enrollment MW target shall comprise |
the specific portion of the annual MW target sought to be obtained in that enrollment. The |
enrollment MW targets shall be recommended by the board each year, subject to commission |
approval. The board shall also recommend a megawatt target for each class ("class MW target") |
that comprises a specified portion of the enrollment MW target, subject to commission approval. |
If the electric-distribution company, the office, and the board mutually agree, they may reallocate |
megawatts during an enrollment from one class to another without commission approval if there |
is an over-subscription in one class and an under-subscription in another, provided that the annual |
MW Target is not being exceeded, except as provided in § 39-26.6-7. |
(c) The annual MW targets shall be established as follows; provided, however, that at |
least three megawatts (3 MW) of nameplate capacity shall be carved out exclusively for small- |
scale solar projects in each of the first four (4) program years: |
(1) For the first program year (2015), the annual MW target shall be twenty-five (25) |
nameplate megawatts; |
(2) For the second program year, the annual targets shall be forty (40) nameplate |
megawatts; |
(3) For the third and fourth program years, the annual target shall be forty (40) nameplate |
megawatts, subject to the conditions set forth in § 39-26.6-12(f) subsection (f) of this section |
having been met for the applicable prior program year as determined in the manner specified in § |
39-26.6-12(g) subsection (g) of this section; and |
(4) For the fifth program year, the annual target shall be set to obtain the balance of |
capacity needed to achieve one hundred sixty (160) nameplate megawatts within the five-year (5) |
distributed-generation growth program, subject to § 39-26.6-12(e) and the conditions set forth in |
§ 39-26.6-12(f) having been met for the fourth program year as determined in the manner |
specified in § 39-26.6-12(g).; and |
(5) From the year 2020 through the year 2029, the annual target for each program year |
shall be an additional forty (40) nameplate megawatts above the annual target for the preceding |
program year. |
(d) During the fifth year of the distributed-generation growth program, the board may |
recommend to the commission an extension of time in the event that additional time is required to |
achieve the full one hundred sixty (160) nameplate megawatt target of the program. The |
commission shall approve the recommendation of the board; provided, however, that the |
commission may make any modifications to the board's recommendation that the commission |
deems appropriate, consistent with the legislative purposes of this chapter as set forth herein. |
(e) To the extent there was a shortfall of capacity procured under chapter 26.2 of title 39 |
from distributed generation procurements in 2014, such shortfall amount may be added to the one |
hundred sixty megawatt (160MW) target for acquisition in the fifth program year under this |
chapter. In no event shall the electric-distribution company be required to exceed the aggregate |
amount of one hundred sixty (160) nameplate capacity plus any such shortfall amount over the |
five (5) years, but may do so voluntarily, in consultation with the board and subject to |
commission approval. |
(f) The conditions specified in subsections (c)(3) and (c)(4) of this section are as follows: |
(1) That it is reasonable to conclude that the bid prices submitted in the procurements for the |
large-scale solar and commercial-scale solar classes were reasonably competitive in the |
immediately preceding program year; (2) That it is reasonable to conclude that the annual MW |
target specified for the next program year is reasonably achievable; and (3) That the electric- |
distribution company was able to, or with reasonably prudent efforts should have been able to, |
perform the studies and system upgrades on a timely basis necessary to accommodate the number |
of applications associated with the targets without materially adversely affecting other electric- |
distribution construction projects needed to provide reliable and safe electric-distribution service. |
To the extent the board or the commission concludes that any of these conditions have not been |
met for the applicable program year, the board may recommend, and/or the commission may |
adopt, a new annual MW target, based on the factors set forth in section 39-26.6-12(h) subsection |
(h) of this section. |
(g) Before the third, fourth, and fifth program years, each year the board shall review the |
conditions specified in § 39-26.6-12(f) subsection (f) of this section and make a recommendation |
to the commission for findings as to whether they have been met for the applicable year. The |
recommendation shall be filed with the commission, with copies to the office and the electric |
distribution company, and any person who has made a written request to the commission to be |
included in such notification, such list which may be obtained from the commission clerk, and a |
notice of such filing shall be posted by the commission on its website. If no party files an |
objection to the recommended findings within ten (10) business days of the posting, the |
commission may accept them without hearings. If an objection is filed with a reasonable |
explanation for its basis, the commission shall hold hearings and make the factual determination |
of whether the conditions have been met. |
(h) In the event that the conditions in § 39-26.6-12(f) subsection (f) of this section have |
not been met for any program year, then the board and the commission shall take into account the |
factors set forth below in setting the annual MW target for the following year. In addition, for |
every program year the board and the commission shall take into account these factors in setting |
the class MW targets, and the enrollment MW targets for the following year: (1) That the new |
annual, class, and enrollment levels reasonably assure that competition among projects for the |
applicable bidding classifications remains robust and likely to yield reasonable and competitive |
program costs; (2) That, assuming prudent management of the program, the electric-distribution |
company should be able to perform the studies and system upgrades on a timely basis necessary |
to accommodate the number of applications associated with the targets without materially |
adversely affecting other electric-distribution construction projects needed to provide reliable and |
safe electric-distribution service; and (3) Any other reasonable factors that are consistent with the |
legislative purpose of this chapter as set forth herein, including the program purpose to facilitate |
the development of renewable distributed generation in the load zone of the electric-distribution |
company at reasonable cost. |
(i) The renewable energy growth program is intended to achieve at least an aggregate |
amount of one hundred sixty (160) nameplate megawatts over five (5) years, plus any shortfall |
amount added in pursuant to § 39-26.6-12(e) subsection (e) of this section. However, after the |
second program year, the board may, based on market data and other information available to it, |
including pricing received during previous program years, recommend changes to the annual |
target for any program year above or below the specified targets in § 39-26.6-12(c) subsection (c) |
of this section, if the board concludes that market conditions are likely to produce favorably low |
or unfavorably high target pricing during the upcoming program year, provided that the |
recommendation may not result in the five-year (5), one hundred sixty megawatt (160MW) |
nameplate target, plus any shortfall added pursuant to § 39-26.6-12(e) subsection (e) of this |
section, being exceeded. Any megawatt reduction in an annual target shall be added to the target |
in the fifth year of the program (and any subsequent years if necessary) such that the overall |
program target of one hundred sixty megawatt (160MW) nameplate capacity, plus any shortfall |
added pursuant to § 39-26.6-12(e) subsection (e) of this section, is achieved. In considering such |
issues, the board and the commission may take into account the reasonableness of current pricing |
and its impact on all electric distribution customers and the legislative purpose of this chapter as |
set forth herein, including the program purpose to facilitate the development of renewable |
distributed generation in the load zone of the electric-distribution company at reasonable cost. |
(j) The provisions of § 39-26.1-4 shall apply to the annual value of performance-based |
incentives (actual payments plus the value of net-metering credits, as applicable) provided by the |
electric-distribution company to all the distributed-generation projects under this chapter, subject |
to the following conditions: |
(1) The targets set for the applicable program year for the applicable project |
classifications were met or, if not met, such failure was due to factors beyond the reasonable |
control of the electric-distribution company; |
(2) The electric-distribution company has processed applications for service and |
completed interconnections in a timely and prudent manner for the projects under this chapter, |
taking into account factors within the electric-distribution company's reasonable control. The |
commission is authorized to establish more specific performance standards to implement the |
provisions of this chapter; and |
(3) The incentive shall be one and three-quarters percent (1.75%) of the annual value of |
performance-based incentives. The commission is authorized to establish more specific |
performance standards to implement the provisions of this paragraph. |
SECTION 2. This act shall take effect upon passage. |
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LC000857/SUB A |
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