SB 960 — AN ACT CONCERNING THE PUBLIC UTILITIES REGULATORY AUTHORITY'S REVIEW OF CLAIMS ARISING FROM CONTRACTS PREVIOUSLY APPROVED BY THE AUTHORITY, PERSONS INVOLVED IN THE TRANSPORTATION OF NATURAL GAS AND REQUIREMENTS FOR OPERATOR QUALIFICATION OF INDIVIDUALS PERFORMING COVERED TASKS ON A PIPELINE FACILITY, CALL BEFORE YOU DIG PROGRAM VIOLATIONS AND FINES AND THE PUBLIC UTILITIES REGULATORY POLICIES ACT.

960 malfeasance or nonfeasance in the management of such public service company, holding company, person involved in the transportation of gas, as such terms are defined in section 16-280a, or licensee, or (2) information pursuant to section 31-51m.

Any employee found to have knowingly made a false disclosure shall be subject to disciplinary action by the employee's employer, up to and including dismissal.

(b) Any employee of such a public service company, holding company, person involved in the transportation of gas, as such terms are defined in section 16-280a, or licensee, or of any person, firm, corporation, contractor or subcontractor directly or indirectly providing goods or services to such a public service company, holding company, person involved in the transportation of gas, as such terms are defined in section 16-280a, or licensee, having knowledge of any of the following may transmit all facts and information in the employee's possession to the Public Utilities Regulatory Authority:

(1) Any matter involving substantial misfeasance, malfeasance or nonfeasance in the management of such public service company, holding company, person involved in the transportation of gas, as such terms are defined in section 16-280a, or licensee;

or (2) any matter involving retaliatory action or the threat of retaliatory action taken against an employee who has reported the misfeasance, malfeasance or nonfeasance, in the management of such public service company, holding company, person involved in the transportation of gas, as such terms are defined in section 16-280a, or licensee.

With regard to any matter described in subdivision (1) of this subsection, the authority shall investigate such matter in accordance with the provisions of section 16-8 and shall not disclose the identity of such employee without the employee's consent unless it determines that such disclosure is unavoidable during the course of the investigation.

With regard to any matter described in subdivision (2) of this subsection, the matter shall be handled in accordance with the procedures set forth in subsections (c) and (d) of this section.

(c) (1) Not more than ninety business days after receipt of a written LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0094 of 26 R01-SB.docx } Substitute Bill No.

960 complaint, in a form prescribed by the authority, by an employee alleging the employee's employer has retaliated against an employee in violation of subsection (a) of this section, the authority shall make a preliminary finding in accordance with this subsection.

(2) Not more than five business days after receiving a written complaint, in a form prescribed by the authority, the authority shall notify the employer by certified mail.

Such notification shall include a description of the nature of the charges and the substance of any relevant supporting evidence.

The employer may submit a written response and both the employer and the employee may present rebuttal statements in the form of affidavits from witnesses and supporting documents and may meet with the authority informally to respond verbally about the nature of the employee's charges.

The authority shall consider in making its preliminary finding as provided in subdivision (3) of this subsection any such written and verbal responses, including affidavits and supporting documents, received by the authority not more than twenty business days after the employer receives such notice.

Any such response received after twenty business days shall be considered by the authority only upon a showing of good cause and at the discretion of the authority.

The authority shall make its preliminary finding as provided in subdivision (3) of this subsection based on information described in this subdivision, without a public hearing.

(3) Unless the authority finds by clear and convincing evidence that the adverse employment action was taken for a reason unconnected with the employee's report of substantial misfeasance, malfeasance or nonfeasance, there shall be a rebuttable presumption that an employee was retaliated against in violation of subsection (a) of this section if the authority finds that:

(A) The employee had reported substantial misfeasance, malfeasance or nonfeasance in the management of the public service company, holding company, person involved in the transportation of gas, as such terms are defined in section 16-280a, or licensee;

(B) the employee was subsequently discharged, suspended, LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0095 of 26 R01-SB.docx } Substitute Bill No.

960 demoted or otherwise penalized by having the employee's status of employment changed by the employee's employer;

and (C) the subsequent discharge, suspension, demotion or other penalty followed the employee's report closely in time.

(4) If such findings are made, the authority shall issue an order requiring the employer to immediately return the employee to the employee's previous position of employment or an equivalent position pending the completion of the authority's full investigatory proceeding pursuant to subsection (d) of this section.

(d) Not later than thirty days after making a preliminary finding in accordance with the provisions of subsection (c) of this section, the authority shall initiate a full investigatory proceeding in accordance with the provisions of section 16-8, at which time the employer shall have the opportunity to rebut the presumption.

The authority may issue orders, impose civil penalties, order payment of back pay or award attorneys' fees in a manner that conforms with the notice and hearing provisions in section 16-41, as amended by this act, against a public service company, holding company, person involved in the transportation of gas, as such terms are defined in section 16-280a, or licensee or a person, firm, corporation, contractor or subcontractor directly or indirectly providing goods or services to such public service company, holding company, person involved in the transportation of gas, as such terms are defined in section 16-280a, or licensee, in order to enforce the provisions of this section.

(e) If an employee or former employee of such a public service company, holding company, person involved in the transportation of gas, as such terms are defined in section 16-280a, or licensee, or of a person, firm, corporation, contractor or subcontractor directly or indirectly providing goods or services to such a public service company, holding company, person involved in the transportation of gas, as such terms are defined in section 16-280a, or licensee, having knowledge of any matter involving the substantial misfeasance, malfeasance or nonfeasance in the management of such public service LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0096 of 26 R01-SB.docx } Substitute Bill No.

960 company, holding company, person involved in the transportation of gas, as such terms are defined in section 16-280a, or licensee, enters into an agreement with the employee's employer that contains a provision directly or indirectly discouraging the employee from presenting a written complaint or testimony concerning such misfeasance, malfeasance or nonfeasance in any legislative, administrative or judicial proceeding, such provision shall be void as against public policy.

(f) The Public Utilities Regulatory Authority shall adopt regulations, in accordance with chapter 54, to carry out the provisions of this section.

Such regulations shall include the following:

(1) The procedures by which a complaint may be brought pursuant to subsection (a) of this section;

(2) the time period in which such a complaint may be brought;

(3) the time period by which the authority shall render a decision pursuant to subsection (d) of this section;

(4) the form on which written complaints shall be submitted to the authority by an employee pursuant to subsection (c) of this section;

and (5) the requirement that a notice be posted in the workplace informing all employees of any public service company, holding company, person involved in the transportation of gas, as such terms are defined in section 16-280a, and licensee and of any person, firm, corporation, contractor or subcontractor directly or indirectly providing goods or services to a company or licensee, as defined in subsection (b) of this section, of their rights under this section, including the right to be reinstated in accordance with subsection (c) of this section.

Sec.

4.

Section 16-11 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

The Public Utilities Regulatory Authority shall, so far as is practicable, keep fully informed as to the condition of the plant, equipment and manner of operation of all public service companies and persons involved in the transportation of gas, as such terms are defined in section 16-280a, in respect to their adequacy and suitability to accomplish the duties imposed upon such companies by law and in LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0097 of 26 R01-SB.docx } Substitute Bill No.

960 respect to their relation to the safety of the public and of the employees of such companies.

The authority may order such reasonable improvements, repairs or alterations in such plant or equipment, or such changes in the manner of operation, as may be reasonably necessary in the public interest.

The general purposes of this section and sections 16-19, 16-25, 16-43 and 16-47 are to assure to the state of Connecticut its full powers to regulate its public service companies, to increase the powers of the Public Utilities Regulatory Authority and to promote local control of the public service companies of this state, and said sections shall be so construed as to effectuate these purposes.

Sec.

5.

Section 16-16 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

Each public service company, [and] electric supplier and person involved in the transportation of gas, as such terms are defined in section 16-280a, subject to regulation by the Public Utilities Regulatory Authority shall, in the event of any accident attended with personal injury or involving public safety, which was or may have been connected with or due to the operation of its or his property, or caused by contact with the wires of any public service company or electric supplier, notify the authority thereof, by telephone or otherwise, as soon as may be reasonably possible after the occurrence of such accident, unless such accident is a minor accident, as defined by regulations of the authority.

Each such person, company or electric supplier shall report such minor accidents to the authority in writing, in summary form, once each month.

If notice of such accident, other than a minor accident, is given otherwise than in writing, it shall be confirmed in writing within five days after the occurrence of such accident.

Any person, company or electric supplier failing to comply with the provisions of this section shall be fined not more than five hundred dollars for each offense.

Sec.

6.

Subsection (a) of section 16-41 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

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960 (a) Each (1) public service company and its officers, agents and employees, (2) electric supplier or person providing electric generation services without a license in violation of section 16-245, and its officers, agents and employees, (3) certified telecommunications provider or person providing telecommunications services without authorization pursuant to sections 16-247f to 16-247h, inclusive, and its officers, agents and employees, (4) person, public agency or public utility, as such terms are defined in section 16-345, subject to the requirements of chapter 293, (5) person subject to the registration requirements under section 16-258a, (6) cellular mobile telephone carrier, as described in section 16-250b, (7) Connecticut electric efficiency partner, as defined in section 16-243v, (8) company, as defined in section 16-49, as amended by this act, [and] (9) entity approved to submeter pursuant to section 16-19ff, and (10) person involved in the transportation of gas, as such terms are defined in section 16-280a, shall obey, observe and comply with all applicable provisions of this title and each applicable order made or applicable regulations adopted by the Public Utilities Regulatory Authority by virtue of this title as long as the same remains in force.

Any such company, electric supplier, certified telecommunications provider, cellular mobile telephone carrier, Connecticut electric efficiency partner, entity approved to submeter, person, any officer, agent or employee thereof, public agency or public utility which the authority finds has failed to obey or comply with any such provision of this title, order or regulation shall be fined by order of the authority in accordance with the penalty prescribed for the violated provision of this title or, if no penalty is prescribed, not more than ten thousand dollars for each offense, except that the penalty shall be a fine of not more than forty thousand dollars for failure to comply with an order of the authority made in accordance with the provisions of section 16-19 or 16-247k or within thirty days of such order or within any specific time period for compliance specified in such order.

Each distinct violation of any such provision of this title, order or regulation shall be a separate offense and, in case of a continued violation, each day thereof shall be deemed a separate offense.

Each such penalty and any interest charged pursuant to subsection (g) or (h) LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00969 of 26 R01-SB.docx } Substitute Bill No.

960 of section 16-49, as amended by this act, shall be excluded from operating expenses for purposes of rate-making.

Sec.

7.

Section 16-280e of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) Any person that violates any provision of the federal act, any regulation issued under the federal act, any provision of this chapter or any regulation adopted by the authority pursuant to subsection (b) or (c) of section 16-280b, shall be subject to a civil penalty not to exceed the higher of the maximum civil penalty provided under 49 USC 60122(a), as amended, or 49 CFR 190.223(a), as amended from time to time.

(b) Any such civil penalty may be compromised by the Public Utilities Regulatory Authority.

In determining the amount of such penalty, or the amount agreed upon in compromise, the authority shall consider the criteria set forth in 49 USC 60122(b), as amended.

(c) Nothing in this section shall be construed to limit the penalties available under section 16-33.

Sec.

8.

(NEW) (Effective from passage) (a) For purposes of this section:

(1) "Covered task" means an activity that is performed on a pipeline facility and that affects the safety or integrity of the pipeline;

and (2) "Evaluation" means a process, established and documented by the operator, to determine an individual's ability to perform a covered task by a (A) a written or oral examination, and (B) observation during performance on the job or simulations.

(b) In addition to the minimum requirements for operator qualification of individuals performing covered tasks on a pipeline facility pursuant to 49 CFR 192, Subpart N, the requirements of this section shall be applicable to such operators in the state.

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960 (c) Each operator shall:

(1) Evaluate an individual if the operator has reason to believe that the individual did not correctly perform a covered task;

(2) Train all individuals to ensure that individuals performing covered tasks have the necessary knowledge and skills to perform covered tasks in a manner that ensures the safe operation of pipeline facilities;

(3) Document in a plan the training requirements, including, but not limited to, the minimum training time for each covered task;

(4) Conduct evaluations more than forty-eight hours after training;

(5) Ensure that the evaluation process is performed by operator personnel or independent third-party contractors;

(6) Ensure that the evaluation process evaluates task-specific abnormal operating conditions;

(7) Ensure that inspectors are qualified for the covered tasks they are inspecting;

(8) Ensure that the training and evaluation process is specific to the operator's plans, procedures and standards;

and (9) Ensure that the written qualification program includes a training and evaluation process for personnel performing engineering tasks.

Sec.

9.

(NEW) (Effective from passage) (a) Any person involved in the transportation of gas, as such terms are defined in section 16-280a of the general statutes, except persons involved in the transportation of propane, shall utilize geographic information systems to map all of such person's pipeline facilities, as defined in section 16-280a of the general statutes.

(b) Any person involved in the transportation of gas, as such terms LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-009611 of 26 R01-SB.docx } Substitute Bill No.

960 are defined in section 16-280a of the general statutes, except persons involved in the transportation of propane, shall provide remote real- time, read-only access to all of such person's electronic systems, if the authority determines that such access will be beneficial in keeping the authority fully informed as to the condition of a plant, equipment and manner of operation pursuant to section 16-11 of the general statutes, as amended by this act.

Sec.

10.

(NEW) (Effective from passage) On or before October 1, 2019, and on or before October first of each year thereafter, any person involved in the transportation of gas, as such terms are defined in section 16-280a of the general statutes, except persons involved in the transportation of natural gas, shall submit to the authority, on a form prescribed by the authority, information the authority deems relevant about such person's propane distribution systems that are subject to the jurisdiction of the authority.

Any changes to such information submitted shall be submitted to the authority within thirty days of such change.

Sec.

11.

Section 16-356 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

Any person, public agency or public utility which the Public Utilities Regulatory Authority determines, after notice and opportunity for a hearing as provided in section 16-41, as amended by this act, to have failed to comply with any provision of this chapter or any regulation adopted under section 16-357 shall forfeit and pay to the state a civil penalty of not more than forty thousand dollars, provided any violation involving the failure of a public utility to mark any approximate location of an underground utility facility correctly or within the time frames prescribed by regulation, which violation did not result in any property damage or personal injury and was not the result of an act of gross negligence on the part of the public utility, shall not result in a civil penalty of more than one thousand dollars.

Any civil penalty assessed for any violation involving the failure of a public utility to properly or timely mark any approximate location of LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-009612 of 26 R01-SB.docx } Substitute Bill No.

960 an underground facility shall be paid by the person, public agency or public utility to whom the notice is addressed.

If any such person, public agency or public utility recovers any portion of the penalty from any person, the authority may direct such person, public agency or public utility to forfeit such recovered penalty, as provided in such notice.

Notwithstanding the provisions contained in subsection (d) of section 16-41, the person, public agency or public utility receiving a notice of violation pursuant to subsection (c) of section 16-41 shall have thirty days from the date of receipt of the notice in which to deliver to the authority a written application for a hearing.

Sec.

12.

Section 16-243a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

[(a) As used in this section, "avoided costs" means the incremental costs to an electric public service company, municipal electric energy cooperative organized under chapter 101a or municipal electric utility organized under chapter 101, of electric energy or capacity or both which, but for the purchase from a private power producer, as defined in section 16-243b, such company, cooperative or utility would generate itself or purchase from another source.

(b) Each electric public service company, municipal electric energy cooperative and municipal electric utility shall:

(1) Purchase any electrical energy and capacity made available, directly by a private power producer or indirectly under subdivision (4) of this subsection;

(2) sell backup electricity to any private power producer in its service territory;

(3) make such interconnections in accordance with the regulations adopted pursuant to subsection (h) of this section necessary to accomplish such purchases and sales;

(4) upon approval by the Public Utilities Regulatory Authority of an application filed by a willing private power producer, transmit energy or capacity from the private power producer to any other such company, cooperative or utility or to another facility operated by the private power producer;

and (5) offer to operate in parallel with a private power producer.

In making a decision on an application filed under subdivision (4) of this LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0013 of 26 R01-SB.docx } Substitute Bill No.

960 subsection, the authority shall consider whether such transmission would (A) adversely impact the customers of the company, cooperative or utility which would transmit energy or capacity to the private power producer, (B) result in an uncompensated loss for, or unduly burden, such company, cooperative, utility or private power producer, (C) impair the reliability of service of such company, cooperative or utility, or (D) impair the ability of the company, cooperative or utility to provide adequate service to its customers.

The authority shall issue a decision on such an application not later than one hundred twenty days after the application is filed, provided, the authority may, before the end of such period and upon notifying all parties and intervenors to the proceeding, extend the period by thirty days.

If the authority does not issue a decision within one hundred twenty days after receiving such an application, or within one hundred fifty days if the authority extends the period in accordance with the provisions of this subsection, the application shall be deemed to have been approved.

The requirements under subdivisions (3), (4) and (5) of this subsection shall be subject to reasonable standards for operating safety and reliability and the nondiscriminatory assessment of costs against private power producers, approved by the Public Utilities Regulatory Authority with respect to electric public service companies or determined by municipal electric energy cooperatives and municipal electric utilities.

(c) The Public Utilities Regulatory Authority, with respect to electric public service companies, and each municipal electric energy cooperative and municipal electric utility shall establish rates and conditions of service for:

(1) The purchase of electrical energy and capacity made available by a private power producer;

and (2) the sale of backup electricity to a private power producer.

The rates for electricity purchased from a private power producer shall be based on the full avoided costs of the electric public service company, municipal electric energy cooperative or municipal electric utility, regardless of whether the purchaser is simultaneously making sales to the private power producer.

Payment for energy and capacity purchased from a LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0014 of 26 R01-SB.docx } Substitute Bill No.

960 private power producer by any such company, cooperative or utility shall be pursuant to such rates and conditions or the terms of a contract between the parties.

The rates and conditions of service for the purchase of energy and capacity established by the authority pursuant to this subsection shall include specific schedules for pricing in long- term contracts for the sale of electricity from small renewable power projects to electric public service companies by private power producers.

Such schedules shall not exceed the present worth of the projected avoided costs of the electric public service company over the term of the contract.

The authority shall apply to a proposed contract filed with the authority after January 1, 1992, by a private power producer for a small renewable power project the rates and conditions of service, including the pricing schedule, in effect on the date the private power producer submits its proposed contract to the authority, regardless of the subsequent creation of differing schedules or the subsequent amendment of existing schedules.

(d) When any person, firm or corporation proposes to enter into a contract to sell energy and capacity as a private power producer, an electric public service company, municipal electric energy cooperative or municipal electric utility shall respond promptly to all requests and offers and negotiate in good faith to arrive at a contract which fairly reflects the provisions of this section and the anticipated avoided costs over the life of the contract.

Upon application by a private power producer, the authority may approve a contract which provides for payment of less than the anticipated avoided costs if, considering all of the provisions, the contract is at least as favorable to the private power producer as a contract providing for the full avoided costs.

The contract may extend for a period of not more than thirty years at the option of the private power producer if it has a generating facility with a capacity of at least one hundred kilowatts.

(e) The authority shall consider generating capacity available from cogeneration technology and renewable energy resources in its periodic reviews of electric public service companies and shall require LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0015 of 26 R01-SB.docx } Substitute Bill No.

960 the companies to include the availability of such capacity in applications for rate relief filed in accordance with section 16-19a.

(f) If a private power producer believes that an electric distribution company has violated any provision of this section it may submit a written petition alleging such violation to the authority.

Upon receipt of the petition, the authority shall fix a time and place for a hearing and mail notice of the hearing to the parties in interest at least one week in advance.

Upon the hearing, the authority may, if it finds the company has violated any such provision, prescribe the manner in which it shall comply.

(g) After January 1, 1992, the authority shall approve each proposed contract submitted by a private power producer for a small renewable power project, with any modifications agreed to by the parties to the contract, if the filing meets the standards for exemption from the proposal process and for an approvable contract established pursuant to section 16-6b, and is consistent with the pricing schedules adopted pursuant to subsection (c) of this section.

Nothing in this section shall preclude a modification of such a contract if the parties to the contract agree to the modification.

Any such modification shall be approved by the authority.

The authority shall reconsider each decision issued pursuant to this section between January 1, 1992, and June 29, 1993, regarding such contracts and shall make any modifications to each such decision necessary to ensure that each such decision conforms with the provisions of this section.

(h) Not later than January 1, 2008, the Public Utilities Regulatory Authority shall issue a final decision approving interconnection standards that meet or exceed national standards of interconnectivity.

If the authority does not issue a final decision by October 1, 2008, each electric distribution company, municipal electric energy cooperative and municipal electric utility shall meet the standards set forth in Title 4, Chapter 4, Subchapter 9, "Net Metering and Interconnection Standards for Class I Renewable Energy Systems" of the New Jersey Administrative Code.] LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0016 of 26 R01-SB.docx } Substitute Bill No.

960 (a) As used in this title, "PURPA" means the Public Utilities Regulatory Policies Act of 1978, codified at 18 USC 824a-3, and its implementing regulations, 18 CFR 292, as amended from time to time, and "Qualifying Facilities" or "QF" has the same meaning as provided in 18 CFR 292.101(b)(1).

(b) As used in section 16-243b, as amended by this act, "avoided costs" means the costs avoided by an electric distribution company as a result of purchasing power or capacity from a qualifying facility, as approved by the Public Utilities Regulatory Authority in accordance with section 16-243b, as amended by this act, and that do not result in costs greater than those which the purchasing electric distribution company would incur if such electric distribution company did not make such purchases and instead purchased electricity or capacity from the regional wholesale electricity markets.

Sec.

13.

Section 16-243b of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

[(a) As used in this title:

(1) "Private power production facility" means a facility which generates electricity in the state (A) solely through the use of cogeneration technology, provided the average useful thermal energy output of the facility is at least twenty per cent of the total energy output of the facility, (B) solely through the use of renewable energy sources, or (C) through both only;

(2) "Useful thermal energy output" means the thermal energy made available for use in any industrial or commercial process, or used in any heating or cooling application;

(3) "Private power producer" means (A) a subsidiary of a gas public service company which is not affiliated with an electric public service company, or a subsidiary of a holding company controlling, directly or indirectly, a gas public service company but not an electric public service company, which generates electricity solely through ownership LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00917 of 26 R01-SB.docx } Substitute Bill No.

960 of fifty per cent or less of a private power production facility or, with the approval of the Public Utilities Regulatory Authority, through ownership of one hundred per cent of a private power production facility which (i) uses a source of energy other than gas as the primary energy source of the facility, or (ii) uses gas as the primary energy source of the facility and uses an improved and innovative technology which furthers the state energy policy as set forth in section 16a-35k, (B) a subsidiary of any other public service company or a subsidiary of a holding company controlling, directly or indirectly, such a public service company, which generates electricity solely through ownership of fifty per cent or less of a private power production facility, (C) the state, a political subdivision of the state or any other person, firm or corporation other than a public service company or any corporation which was a public service company, prior to July 1, 1981, and which consents to be regulated as a public service company or a holding company for a public service company, which generates electricity solely through ownership of one hundred per cent or less of a private power production facility, or (D) any combination thereof;

(4) "Private power provider" means any person, firm, corporation, nonprofit corporation, limited liability company, governmental entity, or other entity, including any public service company, holding company, or subsidiary, which provides energy conservation or demand management measures pursuant to section 16-243f and regulations and orders issued hereunder, which replace the need for electricity generating capacity that electric public service companies would otherwise require;

(5) "Electricity conservation or demand management measures" means the provision pursuant to this section and section 16-243f and regulations and orders adopted hereunder by a private power provider to an electric public service company or its customers of equipment or services or both designed to conserve electricity or to manage electricity load;

and (6) "Small renewable power project" means any private power LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0018 of 26 R01-SB.docx } Substitute Bill No.

960 production facility which has a capacity of five megawatts or less and is fueled by a renewable resource, as defined in section 16a-2, other than wood.

(b) No provision of this section shall limit the jurisdiction of the Public Utilities Regulatory Authority with regard to the effects on a public service company of a private power producer which is an affiliate or a subsidiary of the public service company.] (a) Each electric distribution company shall file with the Public Utilities Regulatory Authority for review and approval three pro forma tariffs for the purchase of energy and capacity from eligible qualifying facilities from which the electric distribution company is obligated to purchase energy or capacity pursuant to 18 CFR 292.303.

Tariffs required pursuant to this section shall address each of the following types of PURPA transactions:

(1) Energy-only qualifying facility sales;

(2) capacity-only qualifying facility sales;

and (3) energy and capacity qualifying facility sales.

(b) The Public Utilities Regulatory Authority shall conduct an uncontested proceeding to review tariffs submitted pursuant to subsection (a) of this section.

The authority shall approve tariffs that it determines satisfy the requirements of PURPA and any other requirements the authority deems appropriate.

(c) Each tariff submitted pursuant to subsection (a) of this section shall establish a process by which qualifying facilities may elect to be compensated either:

(1) Based on avoided costs calculated at the time of delivery;

or (2) based on avoided costs forecasted at the time an obligation to purchase arises pursuant to 18 CFR 292.303.

Sec.

14.

Subdivision (24) of subsection (b) of section 7-233e of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(24) To contract for the purchase or exchange of electricity produced by a [person using cogeneration technology or renewable fuel LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0019 of 26 R01-SB.docx } Substitute Bill No.

960 resources] Qualifying Facility, as defined in [section 16-1] 18 CFR 292.101(b)(1), or for the sale or exchange of electricity produced by the municipal cooperative to such person, provided such purchase, sale or exchange [is subject to the rates and conditions of service established in accordance with section 16-243a] complies with the rates and conditions of service established in 18 CFR 292;

Sec.

15.

Section 12-408b of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

On and after July 1, 1991, any person, firm or corporation who pays a sales and use tax, which tax would not have been due prior to July 1, 1991, pursuant to subdivision (39) of section 12-412 of the general statutes, revision of 1958, revised to January 1991, shall recover the tax paid by (1) adding such tax to any amounts otherwise payable [under a sales contract] pursuant to a tariff approved by the Public Utilities Regulatory Authority pursuant to [subsection (d) of] section 16-243a, as amended by this act, and (2) amortizing such tax, together with interest at the rate paid on front-loaded payments, over the life of a sales contract approved by the department pursuant to said subsection (d).

Sec.

16.

Subdivision (3) of subsection (a) of section 16-1 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(3) "Public service company" includes electric distribution, gas, telephone, pipeline, sewage, water and community antenna television companies and holders of a certificate of cable franchise authority, owning, leasing, maintaining, operating, managing or controlling plants or parts of plants or equipment, but shall not include towns, cities, boroughs, any municipal corporation or department thereof, whether separately incorporated or not, a [private power producer] producer Qualifying Facility, as defined in [section 16-243b] 18 CFR 292.101(b)(1), or an exempt wholesale generator, as defined in 15 USC 79z-5a;

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960 Sec.

17.

Subdivision (23) of subsection (a) of section 16-1 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(23) "Electric distribution company" or "distribution company" means any person providing electric transmission or distribution services within the state, but does not include:

(A) A [private power producer] Qualifying Facility, as defined in [section 16-243b] 18 CFR 292.101(b)(1);

(B) a municipal electric utility established under chapter 101, other than a participating municipal electric utility;

(C) a municipal electric energy cooperative established under chapter 101a;

(D) an electric cooperative established under chapter 597;

(E) any other electric utility owned, leased, maintained, operated, managed or controlled by any unit of local government under any general statute or special act;

(F) an electric supplier;

(G) an entity approved to submeter pursuant to section 16-19ff;

or (H) a municipality, state or federal governmental entity authorized to distribute electricity across a public highway or street pursuant to section 16-243aa;

Sec.

18.

Subsection (a) of section 16-50i of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) "Facility" means:

(1) An electric transmission line of a design capacity of sixty-nine kilovolts or more, including associated equipment but not including a transmission line tap, as defined in subsection (e) of this section;

(2) a fuel transmission facility, except a gas transmission line having a design capability of less than two hundred pounds per square inch gauge pressure or having a design capacity of less than twenty per cent of its specified minimum yield strength;

(3) any electric generating or storage facility using any fuel, including nuclear materials, including associated equipment for furnishing electricity but not including an emergency generating device, as defined in subsection (f) of this section or a facility (A) [owned and operated by a private power producer, as defined in section 16-243b, (B) which is a qualifying small power production LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0021 of 26 R01-SB.docx } Substitute Bill No.

960 facility or a qualifying cogeneration facility under the Public Utility Regulatory Policies Act of 1978, as amended] which is a Qualifying Facility, as defined in 18 CFR 292.101(b)(1), or a facility determined by the council to be primarily for a producer's own use, and [(C)] (B) which has, in the case of a [facility] Qualifying Facility utilizing renewable energy sources, a generating capacity of one megawatt of electricity or less and, in the case of a [facility] Qualifying Facility utilizing cogeneration technology, a generating capacity of twenty-five megawatts of electricity or less;

(4) any electric substation or switchyard designed to change or regulate the voltage of electricity at sixty-nine kilovolts or more or to connect two or more electric circuits at such voltage, which substation or switchyard may have a substantial adverse environmental effect, as determined by the council established under section 16-50j, and other facilities which may have a substantial adverse environmental effect as the council may, by regulation, prescribe;

(5) such community antenna television towers and head-end structures, including associated equipment, which may have a substantial adverse environmental effect, as said council shall, by regulation, prescribe;

and (6) such telecommunication towers, including associated telecommunications equipment, owned or operated by the state, a public service company or a certified telecommunications provider or used in a cellular system, as defined in [the Code of Federal Regulations Title 47, Part 22] 47 CFR 22, as amended, which may have a substantial adverse environmental effect, as said council shall, by regulation, prescribe;

Sec.

19.

Section 16a-49 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

[(a)] The Public Utilities Regulatory Authority shall require each gas and electric public service company to implement a cost effective conservation and load management program consistent with integrated resource planning principles.

As part of each conservation and load management program, the authority shall require specific programs to target the needs of manufacturers.

The authority shall LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0022 of 26 R01-SB.docx } Substitute Bill No.

960 allow the gas or electric public service company either:

(1) To earn a return on prudently incurred multiyear conservation and load management expenditures on programs and measures approved by the authority included in the company's rate base and successfully implemented by the company at a rate at least one percentage point but no more than five percentage points higher than such company's rate of return otherwise found to be reasonable;

or (2) authorize a return of at least one percentage point but no more than five percentage points on the company's prudently incurred conservation and load management expenditures treated as operating costs on programs and measures approved by the authority and successfully implemented by the company.

For the purposes of this section, "conservation and load management expenditures" shall include all prudent expenditures, approved by the authority by gas or electric public service companies designed to conserve energy or manage gas or energy load.

[(b) The authority may authorize an electric public service company a return on such company's expenditures in acquiring energy conservation or load management measures, approved by the authority, from private power providers, as defined in section 16- 243b.] Sec.

20.

Section 49-4c of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

Any mortgage entered into subsequent to July 1, 1986, between a [private power producer, as defined in section 16-243b, or the owner or operator of a qualifying facility] Qualifying Facility, as defined in [Part 292 of Title 18 of the Code of Federal Regulations] 18 CFR 292, or a guarantor of any of their respective obligations, as mortgagor, and an electric distribution company, as defined in section 16-1, as amended by this act, as mortgagee, shall be valid to secure all obligations then existing or thereafter arising of the mortgagor to the mortgagee under an electricitypurchase [agreement] tariff,including, without limitation, recovery of amounts paid to [the private power producer LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0023 of 26 R01-SB.docx } Substitute Bill No.

960 or] the owner or operator of a [qualifying facility] Qualifying Facility by the mortgagee in excess of the mortgagee's avoided costs, as defined in accordance with tariffs approved by the Public Utilities Regulatory Authority pursuant to section 16-243a, as amended by this act, and all other damages for failure to deliver electric energy or capacity or other breach of an electricity purchase agreement, including, without limitation, the net replacement cost of the capacity being secured by such mortgage, together with accrued interest, if any, as computed in accordance with the terms of the electricity purchase agreement or the mortgage, and under a guarantee of such obligations or obligations created by the mortgage, and shall have priority over the rights of others who shall acquire any rights in the property covered by such mortgage subsequent to the recording of the mortgage in the land records of the town in which the mortgaged property is situated provided:

(1) The electricity purchase [agreement] tariff is substantially in the form approved by the Public Utilities Regulatory Authority pursuant to section 16-243a, as amended by this act, and shall have been entered into by the mortgagor and mortgagee prior to or simultaneously with or subsequent to the execution and delivery of the mortgage, (2) the caption to the mortgage shall contain the words "Open-End Mortgage" and ["ElectricityPurchase Agreement"] "Electricity Purchase Tariff", (3) the mortgage shall state that it is entered into to secure the mortgagor's obligations to the mortgagee under an electricity purchase [agreement] tariff or under a guarantee of any electricity purchase [agreement] tariff obligations and shall recite either the address of an office of the mortgagee or its assignee in the state at which a copy of the electricity purchase [agreement] tariff is on file and may be inspected by the public during normal business hours or that the electricity purchase [agreement] tariff has been recorded, as an exhibit to the mortgage or otherwise, on or before the date the mortgage is recorded, in the land records of the town in which the mortgaged property is situated, provided the electricity purchase [agreement] tariff shall be so recorded, (4) the amount of the obligation from time to time secured by the mortgage may be determined or reasonably approximated on the basis of records maintained by the LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0024 of 26 R01-SB.docx } Substitute Bill No.

960 mortgagee or its assignee in the state, which records and an estimate of the amount claimed by the mortgagee to be secured are made available to the public with reasonable promptness upon written request, and (5) the mortgage states the maximum amount which it shall secure.

Nothing in this section shall invalidate any mortgage which would be valid without this section.

For purposes of this section, ["electricity purchase agreement"] "electricity purchase tariff" means [a contract or] an agreement to purchase and sell electric energy or capacity by and between [a private power producer, as defined in section 16-243b, or] the owner or operator of a [qualifying facility] Qualifying Facility, as defined in [Part 292 of Title 18 of the Code of Federal Regulations] 18 CFR 292.101(b)(1), and an electric distribution company, as defined in section 16-1, as amended by this act.

Sec.

21.

Sections 16-243d, 16-243f and 16-243g of the general statutes are repealed.

(Effective from passage) This act shall take effect as follows and shall amend the following sections:

Section 1 from passage 16-35 Sec.

2 from passage 16-7 Sec.

3 from passage 16-8a Sec.

4 from passage 16-11 Sec.

5 from passage 16-16 Sec.

6 from passage 16-41(a) Sec.

7 from passage 16-280e Sec.

8 from passage New section Sec.

9 from passage New section Sec.

10 from passage New section Sec.

11 from passage 16-356 Sec.

12 from passage 16-243a Sec.

13 from passage 16-243b Sec.

14 from passage 7-233e(b)(24) Sec.

15 from passage 12-408b Sec.

16 from passage 16-1(a)(3) LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00960- 25 of 26 R01-SB.docx } Substitute Bill No.

960 Sec.

17 from passage 16-1(a)(23) Sec.

18 from passage 16-50i(a) Sec.

19 from passage 16a-49 Sec.

20 from passage 49-4c Sec.

21 from passage Repealer section Statement of Legislative Commissioners:

In Sec.

11(a) and in Sec.

14, "Part" was deleted for consistency with standard drafting conventions.

ET Joint Favorable Subst.

LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00960- 26 of 26 R01-SB.docx }